Western Digital Corporation (NYSE:WDC) develops, manufactures, and sells storage products and solutions that enable people to create, manage, experience, and preserve digital content.
Insider selling during the last 30 days
Here is a table of Western Digital's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Option Exercise & Sale||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Stephen Milligan||CEO||June 19||13,877||Yes||Yes||99,525
shares + 109,459 options
|Thomas Pardun||Director||June 17||6,909||Yes||No||27,867
shares + 28,894 options
|William Kimsey||Director||June 17||8,277||Yes||No||20,392
shares + 5,391 options
|Michael Ray||SVP||June 17-18||9,060||Yes||Yes||29,316 shares + 37,738 options||11.9%|
|James Murphy||President, WD Subsidiary||May 27-June 10||14,668||Yes & No||No||57,578
shares + 56,649 options
|Michael Cordano||President, HGST Subsidiary||June 6||5,896||Yes||Yes||79,132
shares + 53,063 options
There have been 58,687 shares sold by insiders during the last 30 days. Stephen Milligan, Michael Ray, and Michael Cordano sold their shares pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Western Digital's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 13,435,184 shares sold and there have been zero shares purchased by insiders since January 2013.
Western Digital reported the fiscal 2014 third-quarter, which ended March 28, financial results on April 30 with the following highlights:
|Net income||$375 million|
The six insiders sold their shares after these results.
Western Digital has negative revenue growth currently.
Western Digital's fiscal 2014 fourth-quarter guidance is as follows:
|Qtrly Rev Growth (yoy):||-0.02||-0.03|
|PEG (5 yr expected):||7.09||1.28|
Western Digital is trading at a higher P/E ratio than Seagate. In Seagate, there have been 316,458 shares sold and there have been zero shares purchased by insiders this year. Only Western Digital has seen intensive insider selling during the last 30 days.
There have been six different insiders selling Western Digital and there have not been any insiders buying Western Digital during the last 30 days. Four of these six insiders decreased their holdings by more than 10%. Western Digital has an insider ownership of 10.98%.
Before going short Western Digital, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/E ratio, negative revenue growth, and the intensive insider-selling activity.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.