CMB Stock News Of The Day 📰🗞️🗞️📈📉

“Western Digital Doubles Down on Buybacks as Sandisk Exit Nears” 🚨🚨🚨

Western Digital signaled confidence in its balance sheet and long-term outlook by announcing an additional $4 billion in share buybacks, reinforcing its capital return strategy just as it prepares to fully monetize its remaining stake in Sandisk. The move comes as management positions itself to unload 7.5 million Sandisk shares ahead of the one-year anniversary of the spin-off.

After spinning off Sandisk earlier this year, Western Digital retained just under 20% of the business for strategic and regulatory reasons. Now, with Sandisk emerging as one of Wall Street’s hottest stocks, management plans to execute another debt-for-equity swap, using the proceeds to aggressively reduce debt. The company has already proven this playbook works—last year’s partial sale retired roughly $880 million in debt in a tax-efficient manner.

This next transaction could be even more impactful. By selling a far smaller number of shares, Western Digital stands to retire up to $5 billion in debt, dramatically improving its financial flexibility. Recent signals, including JPMorgan placing Sandisk under a “not rated” designation due to restrictions, suggest the transaction may be imminent.

With Sandisk trading heavy daily volume, the market appears well-positioned to absorb the upcoming share release without major disruption. For Western Digital shareholders, patience may soon pay off—through a cleaner balance sheet, continued buybacks, and a sharper focus on core operations.