280,201 Shares in Western Digital Corporation $WDC Acquired by 53 House LLP

Key Points

• 53 House LLP has acquired a new position in Western Digital Corporation, purchasing 280,201 shares valued at approximately $11.3 million, making it the firm’s 5th largest investment.
• Western Digital reported earnings per share of $1.66, surpassing analyst estimates of $1.48 and showing a 30% revenue increase year-over-year.
• The company has announced a quarterly dividend of $0.10 per share, with a yield of 0.5%, and a payout ratio of 7.77%.

53 House LLP bought a new stake in Western Digital Corporation (NASDAQ:WDC - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 280,201 shares of the data storage provider's stock, valued at approximately $11,329,000. Western Digital comprises about 10.0% of 53 House LLP's portfolio, making the stock its 5th biggest position. 53 House LLP owned 0.08% of Western Digital as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also added to or reduced their stakes in the company. Elequin Capital LP purchased a new stake in Western Digital during the fourth quarter valued at about $40,000. Zions Bancorporation National Association UT purchased a new stake in Western Digital during the first quarter valued at about $29,000. Allworth Financial LP boosted its position in Western Digital by 34.1% during the first quarter. Allworth Financial LP now owns 955 shares of the data storage provider's stock valued at $38,000 after buying an additional 243 shares during the period. MorganRosel Wealth Management LLC purchased a new stake in Western Digital during the first quarter valued at about $40,000. Finally, GeoWealth Management LLC boosted its position in Western Digital by 91.6% during the fourth quarter. GeoWealth Management LLC now owns 1,044 shares of the data storage provider's stock valued at $62,000 after buying an additional 499 shares during the period. Institutional investors own 92.51% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently weighed in on WDC shares. Morgan Stanley dropped their target price on shares of Western Digital from $85.00 to $83.00 and set an "overweight" rating for the company in a report on Tuesday, July 29th. The Goldman Sachs Group started coverage on shares of Western Digital in a report on Thursday, July 10th. They set a "neutral" rating and a $70.00 target price for the company. Bank of America increased their target price on shares of Western Digital from $62.00 to $71.00 and gave the stock a "buy" rating in a report on Monday, June 9th. Loop Capital reiterated a "buy" rating on shares of Western Digital in a report on Tuesday, May 6th. Finally, Zacks Research upgraded shares of Western Digital from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $78.39.

Western Digital Stock Up 0.6%

WDC traded up $0.49 on Tuesday, hitting $79.71. The company had a trading volume of 8,721,804 shares, compared to its average volume of 7,462,268. Western Digital Corporation has a 52-week low of $28.83 and a 52-week high of $80.30. The stock has a fifty day simple moving average of $69.56 and a 200-day simple moving average of $55.10. The firm has a market capitalization of $27.81 billion, a P/E ratio of 15.48, a P/E/G ratio of 0.95 and a beta of 1.58. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.08 and a quick ratio of 0.84.

Western Digital (NASDAQ:WDC - Get Free Report) last announced its earnings results on Wednesday, July 30th. The data storage provider reported $1.66 earnings per share for the quarter, beating analysts' consensus estimates of $1.48 by $0.18. Western Digital had a net margin of 14.13% and a return on equity of 24.93%. The business had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.45 billion. During the same quarter last year, the firm earned $1.44 earnings per share. The business's revenue for the quarter was up 30.0% on a year-over-year basis. Western Digital has set its Q1 2026 guidance at 1.540-1.690 EPS. As a group, equities analysts expect that Western Digital Corporation will post 4.89 EPS for the current fiscal year.

Western Digital Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Thursday, September 4th will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Thursday, September 4th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.5%. Western Digital's dividend payout ratio (DPR) is currently 7.77%.

Western Digital announced that its Board of Directors has authorized a stock buyback plan on Tuesday, May 13th that permits the company to buyback $2.00 billion in shares. This buyback authorization permits the data storage provider to reacquire up to 11.7% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Western Digital

In other Western Digital news, insider Cynthia L. Tregillis sold 14,067 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $74.78, for a total transaction of $1,051,930.26. Following the completion of the transaction, the insider owned 135,351 shares of the company's stock, valued at approximately $10,121,547.78. This trade represents a 9.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Vidyadhara K. Gubbi sold 5,597 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $76.26, for a total transaction of $426,827.22. Following the sale, the insider directly owned 154,679 shares of the company's stock, valued at $11,795,820.54. This trade represents a 3.49% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 39,194 shares of company stock worth $2,913,589 over the last three months. Company insiders own 0.30% of the company's stock.

Western Digital Company Profile

Western Digital Corporation develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. It offers client devices, including hard disk drives (HDDs) and solid state drives (SSDs) for desktop and notebook personal computers (PCs), gaming consoles, and set top boxes; and flash-based embedded storage products for mobile phones, tablets, notebook PCs, and other portable and wearable devices, as well as automotive, Internet of Things, industrial, and connected home applications.