189,100 Shares in Western Digital Corporation $WDC Acquired by Avala Global LP

Avala Global LP bought a new position in shares of Western Digital Corporation (NASDAQ:WDC - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 189,100 shares of the data storage provider's stock, valued at approximately $120,782,000. Western Digital accounts for 4.5% of Avala Global LP's portfolio, making the stock its 7th largest holding. Avala Global LP owned 0.05% of Western Digital at the end of the most recent quarter.

Several other large investors have also added to or reduced their stakes in WDC. Norges Bank purchased a new stake in shares of Western Digital in the fourth quarter worth $788,729,000. Northern Trust Corp raised its position in shares of Western Digital by 11.2% during the 3rd quarter. Northern Trust Corp now owns 3,805,463 shares of the data storage provider's stock valued at $456,884,000 after purchasing an additional 384,103 shares during the period. Soroban Capital Partners LP lifted its stake in shares of Western Digital by 1,926.3% during the 2nd quarter. Soroban Capital Partners LP now owns 3,061,134 shares of the data storage provider's stock valued at $195,882,000 after buying an additional 2,910,062 shares in the last quarter. AQR Capital Management LLC lifted its stake in shares of Western Digital by 70.4% during the 4th quarter. AQR Capital Management LLC now owns 2,972,703 shares of the data storage provider's stock valued at $512,107,000 after buying an additional 1,228,661 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Western Digital by 6.0% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,809,409 shares of the data storage provider's stock worth $483,977,000 after buying an additional 159,167 shares during the period. Hedge funds and other institutional investors own 92.51% of the company's stock.

Western Digital News Summary

Here are the key news stories impacting Western Digital this week:

• Positive Sentiment: Western Digital disclosed exchange agreements covering approximately $191 million of its 3.00% convertible notes due 2028. The transaction will provide holders with cash and shares, potentially reducing debt, although the stock component could create some dilution. The exchanges are expected to close on or after September 2. Western Digital convertible notes article
• Positive Sentiment: Investors continue to see support from AI, cloud and data-center demand. Western Digital recently reported quarterly revenue of $3.75 billion, up 43.8% year over year, and non-GAAP EPS of $3.56 versus the $3.31 consensus. Management’s next-quarter outlook also points to continued strong growth. Western Digital debt exchange and AI demand analysis
• Positive Sentiment: A hammer chart pattern suggests technical support after the stock’s recent decline, while upward earnings-estimate revisions may improve the likelihood of a near-term rebound. Western Digital bottoming pattern article
• Neutral Sentiment: Analyst sentiment remains broadly favorable, with a consensus “Moderate Buy” rating and a median recent price target of approximately $597.50. However, targets vary widely, reflecting uncertainty around valuation and execution.
• Negative Sentiment: Western Digital is assessing potential effects from new U.S. sanctions related to Iran, including possible compliance costs, supply-chain disruptions and impacts on contract manufacturing or shipments. Western Digital Iran sanctions exposure article
• Negative Sentiment: Insider activity has been heavily weighted toward sales, including transactions by executives and directors. The reported sales were made under pre-arranged trading plans, reducing their significance, but they remain a potential overhang for sentiment.
• Negative Sentiment: Broader caution toward highly valued AI and memory stocks, ahead of Nvidia’s earnings, and concerns about potential Chinese memory competition could pressure sector valuations and future pricing.

Western Digital Stock Up 4.0%

Shares of Western Digital stock opened at $468.88 on Thursday. Western Digital Corporation has a twelve month low of $77.90 and a twelve month high of $799.87. The business has a 50-day moving average price of $538.41 and a 200-day moving average price of $438.22. The firm has a market cap of $161.61 billion, a price-to-earnings ratio of 19.37 and a beta of 2.14.

Western Digital (NASDAQ:WDC - Get Free Report) last posted its earnings results on Wednesday, August 5th. The data storage provider reported $3.56 EPS for the quarter, topping analysts' consensus estimates of $3.31 by $0.25. Western Digital had a return on equity of 48.15% and a net margin of 72.95%.The company had revenue of $3.75 billion for the quarter, compared to the consensus estimate of $3.70 billion. During the same period in the previous year, the business earned $1.66 earnings per share. The firm's revenue for the quarter was up 43.8% on a year-over-year basis. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. On average, equities analysts expect that Western Digital Corporation will post 19.65 EPS for the current fiscal year.

Western Digital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Stockholders of record on Tuesday, September 8th will be given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date is Tuesday, September 8th. Western Digital's dividend payout ratio is currently 2.48%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on WDC. JPMorgan Chase & Co. increased their price target on Western Digital from $530.00 to $650.00 and gave the stock an "overweight" rating in a research note on Friday, June 12th. Bank of America upped their price objective on Western Digital from $610.00 to $732.00 and gave the stock a "buy" rating in a research note on Wednesday, July 1st. Zacks Research upgraded Western Digital from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, May 6th. Citigroup cut their target price on Western Digital from $800.00 to $740.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Finally, Melius Research set a $1,050.00 price target on Western Digital and gave the stock a "buy" rating in a report on Monday, June 29th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $534.56.

Insider Activity

In related news, insider Vidyadhara K. Gubbi sold 2,475 shares of the firm's stock in a transaction on Monday, June 1st. The shares were sold at an average price of $556.24, for a total value of $1,376,694.00. Following the completion of the transaction, the insider directly owned 85,154 shares of the company's stock, valued at approximately $47,366,060.96. This trade represents a 2.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Irving Tan sold 20,000 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $444.97, for a total transaction of $8,899,400.00. Following the completion of the sale, the chief executive officer owned 575,966 shares in the company, valued at $256,287,591.02. This represents a 3.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 24,634 shares of company stock worth $11,357,073. 0.18% of the stock is currently owned by insiders.

Western Digital Profile

Western Digital Corporation is a global data storage company that designs, manufactures and sells a broad range of storage devices and systems for personal, enterprise and cloud applications. Headquartered in San Jose, California, the company develops hard disk drives (HDDs), solid-state drives (SSDs), NAND flash components and finished storage products used in PCs, external storage, servers, network-attached storage (NAS) and embedded systems.

Its product portfolio spans consumer and commercial markets, including internal and external HDDs and SSDs, removable flash memory products and storage platforms for data center and enterprise environments.

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