New York, Feb 25, 2026, 10:50 (EST) — Regular session
- Western Digital climbed roughly 7.5% to $290.79 in mid-morning action, following a $270.57 close on Tuesday.
- S&P bumped Western Digital’s rating up to BBB-, citing the company’s recent debt paydown and its projection for a net-cash position.
- SEC disclosures indicate the preferred shares are out, with redemptions on the 2029 and 2032 notes. A Form 4 also turned up, highlighting some minor, pre-arranged insider sales.
Western Digital jumped around 7.5% to $290.79 late Wednesday morning, after ending the previous session at $270.57. The share price has swung from $280.14 to $297.56 so far. Seagate Technology, its main rival, advanced roughly 5.5%. (Google)
S&P Global Ratings bumped up Western Digital’s issuer credit rating to BBB- on Monday, assigning a stable outlook. The agency pointed to the company’s debt reduction moves and its anticipated net cash position—Western Digital is on track to hold more cash than debt. S&P also noted that the company is already nearly fully booked for calendar 2026 and has been locking in longer-term deals for 2027, underscoring demand visibility that’s key for storage hardware players. (Investing)
Credit upgrades can shift borrowing costs fast, and often draw in a broader set of debt buyers. Western Digital split off its flash unit, SanDisk, back in February 2025. The hard-drive side is now left to sort out its balance sheet alone. (SEC)
Western Digital, in its latest 8-K, said the company’s Series A convertible perpetual preferred stock was wiped out following a mandatory conversion on Feb. 17, with those shares shifting back to authorized but unissued. On top of that, Western Digital redeemed both its 2.850% senior notes due 2029 and 3.100% senior notes due 2032 after putting the cash with the trustee on Feb. 23. Liens securing those notes? Those dropped away automatically after other debt was paid off on Feb. 19. (SEC)
Clearing out a preferred class and paying off secured notes streamlines the balance sheet—something that tends to help sentiment, particularly in a business where prices can swing fast. Investors have fewer variables to juggle when estimating how much cash stays in the company, and what portion might get squirrelled away as a buffer against leaner times.
Traders now have their eyes on the rest of the convertibles. These notes function as bonds, but there’s a twist: under specific triggers, they can flip into shares—a setup that stirs dilution worries, especially if the stock takes off and holders decide to make the swap.
Chief Legal Officer and Corporate Secretary Cynthia Tregillis unloaded 438 shares between Feb. 23 and 24, fetching prices in the $281.70 to $283.83 range, according to a separate Form 4. The trades were made under a pre-arranged Rule 10b5-1 plan set up in May 2025. The same filing noted that shares were withheld for taxes linked to vested equity awards. (SEC)
Even with a credit upgrade, demand isn’t guaranteed. Should spending on cloud and AI servers pull back, or if hard-drive prices weaken, that cash buffer—counted on by ratings agencies and investors—could thin out. Storage stocks have a reputation for quick moves when the cycle turns.
Investors watching the stock should note the next key date: March 5, the ex-dividend deadline. Cash dividends are set for payment on March 18, per the company’s dividend history. (Wdc)
