Western Digital Slumps 27% in Trading Volume as New Institutional Stake and 2B Buyback Signal Strategic Moves Amid 257th Market Activity Ranking

On August 8, 2025, Western (WDC) rose 0.71% with a trading volume of $370 million, down 27.34% from the previous day and ranking 257th in market activity. Recent developments highlight strategic investor actions and corporate initiatives impacting the stock.

AI Squared Management Ltd entered the scene with a new $6.7 million stake in WDC, acquiring 165,653 shares, marking it as the firm’s fifth-largest holding. The move aligns with Western’s recent $2 billion stock repurchase program, signaling management’s confidence in undervaluation. Concurrently, the company announced a $0.10 per share quarterly dividend, reflecting a 7.77% payout ratio amid a 30% year-over-year revenue surge.

Analyst sentiment remains cautiously optimistic. TD Securities lowered its price target to $53, while JPMorgan upgraded WDC to “overweight” with a $57 objective. Eighteen analysts assigned a “buy” rating, contrasting with four “hold” assessments. The stock’s 14.33 P/E ratio and 0.91 PEG ratio suggest valuation stability, supported by improved earnings and cash flow metrics.

Insider transactions revealed a mixed picture. CEO Irving Tan sold 11,379 shares, reducing his stake by 1.84%, while SVP Gene Zamiska divested 4.13% of his holdings. Institutional investors, including Sachem Head Capital and UBS AM, bolstered stakes, with 92.51% of shares held by institutions. These movements underscore divergent views on the stock’s near-term trajectory.

A backtested strategy of buying the top 500 high-volume stocks and holding for one day yielded 166.71% from 2022 to 2025, outperforming the S&P 500’s 29.18% by 137.53%. This highlights liquidity’s role in short-term volatility, particularly in markets where high-volume names like WDC can exhibit amplified price swings despite reduced trading interest.