Western Digital Corporation (NASDAQ:WDC) shares are trading higher Tuesday after the company authorized an additional $4 billion in share repurchases.
- Western Digital stock is challenging resistance. Why are WDC shares at highs?
$4 Billion Share Repurchase Authorization Announced
Western Digital said its new $4 billion authorization will be effective immediately. As of Feb. 2, the company had approximately $484 million remaining under its prior share repurchase authorization.
Western Digital said share repurchases may be made on the open market or through privately negotiated transactions and may be executed pursuant to a Rule 10b5-1 plan.
The company noted that the amount and timing of any share repurchases will depend on market conditions and other corporate considerations. The company added that it may suspend or discontinue the repurchase program at any time.
CEO Irving Tan said the expanded buyback authorization reflects confidence in the company’s future and its commitment to shareholder value, while balancing reinvestment in the business, debt reduction and capital returns to shareholders.
WDC Trades Above Key Levels
The stock is currently trading 23.2% above its 20-day simple moving average (SMA) and 74.9% above its 100-day SMA, indicating strong short-term and long-term bullish momentum. Shares have increased 319.48% over the past 12 months and are currently positioned closer to their 52-week highs than lows, showcasing a robust upward trend.
The RSI is at 66.94, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. This combination suggests that while the stock is not yet overbought, it is experiencing positive price action.
The combination of neutral RSI and bullish MACD indicates mixed momentum, suggesting that while the stock has room for further gains, traders should remain cautious of potential pullbacks.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Western Digital, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 8.9 — The stock is trading at a steep premium relative to peers.
- Quality Rank: 96.85 — The balance sheet remains healthy.
- Momentum Rank: 99.26 — Stock is outperforming the broader market.
The Verdict: Western Digital’s Benzinga Edge signal reveals a strong momentum position, reflecting its recent price action. However, the low value rank indicates that the stock may be overvalued compared to its peers, suggesting that while the trend is positive, caution is warranted for potential corrections.
Western Digital Shares Rise
WDC Price Action: At the time of writing, Western Digital shares are trading 6.93% higher at $288.96, according to data from Benzinga Pro.
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