Adams Diversified Equity Fund Inc. Purchases Shares of 20,500 Western Digital Corporation $WDC

Key Points

• Adams Diversified Equity Fund disclosed a new first-quarter stake in Western Digital, buying 20,500 shares worth about $5.5 million.
• Western Digital reported strong quarterly results, with EPS of $2.72 beating estimates and revenue of $3.34 billion topping expectations, while revenue grew 45.5% year over year.
• Wall Street sentiment remains broadly positive, with multiple analysts raising price targets and the stock carrying a Moderate Buy consensus; however, recent sector weakness and some insider selling have added caution.

Adams Diversified Equity Fund Inc. acquired a new stake in Western Digital Corporation (NASDAQ:WDC - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm acquired 20,500 shares of the data storage provider's stock, valued at approximately $5,545,000.

Other institutional investors and hedge funds have also made changes to their positions in the company. GHP Investment Advisors Inc. lifted its position in shares of Western Digital by 9.2% during the 1st quarter. GHP Investment Advisors Inc. now owns 357 shares of the data storage provider's stock worth $97,000 after purchasing an additional 30 shares during the last quarter. Alps Advisors Inc. boosted its position in shares of Western Digital by 0.8% during the 4th quarter. Alps Advisors Inc. now owns 4,707 shares of the data storage provider's stock worth $811,000 after acquiring an additional 37 shares in the last quarter. Quadcap Wealth Management LLC boosted its position in shares of Western Digital by 2.1% during the 4th quarter. Quadcap Wealth Management LLC now owns 2,007 shares of the data storage provider's stock worth $346,000 after acquiring an additional 41 shares in the last quarter. Moss Adams Wealth Advisors LLC boosted its position in shares of Western Digital by 2.6% during the 4th quarter. Moss Adams Wealth Advisors LLC now owns 1,982 shares of the data storage provider's stock worth $341,000 after acquiring an additional 51 shares in the last quarter. Finally, Falcon Wealth Planning increased its holdings in shares of Western Digital by 2.6% in the 1st quarter. Falcon Wealth Planning now owns 2,170 shares of the data storage provider's stock valued at $587,000 after acquiring an additional 54 shares during the last quarter. 92.51% of the stock is owned by institutional investors and hedge funds.

Western Digital Price Performance

Shares of Western Digital stock opened at $586.45 on Friday. The firm's fifty day simple moving average is $518.00 and its 200-day simple moving average is $344.63. Western Digital Corporation has a 12 month low of $62.65 and a 12 month high of $799.87. The stock has a market capitalization of $202.14 billion, a price-to-earnings ratio of 35.01 and a beta of 2.13.

Western Digital (NASDAQ:WDC - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The data storage provider reported $2.72 earnings per share for the quarter, topping analysts' consensus estimates of $2.39 by $0.33. The firm had revenue of $3.34 billion during the quarter, compared to analysts' expectations of $3.25 billion. Western Digital had a net margin of 55.29% and a return on equity of 42.95%. Western Digital's quarterly revenue was up 45.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.36 EPS. Western Digital has set its Q4 2026 guidance at 3.100-3.400 EPS. Analysts anticipate that Western Digital Corporation will post 9.6 earnings per share for the current year.

Western Digital Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Friday, June 5th were paid a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. This is a positive change from Western Digital's previous quarterly dividend of $0.12. The ex-dividend date was Friday, June 5th. Western Digital's payout ratio is currently 3.58%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on WDC. Bank of America increased their price target on shares of Western Digital to $495.00 and gave the company a "buy" rating in a research note on Monday, April 27th. Weiss Ratings downgraded shares of Western Digital from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday. Wells Fargo & Company increased their target price on shares of Western Digital from $500.00 to $575.00 and gave the company an "overweight" rating in a research report on Monday, June 1st. TD Cowen lifted their price target on shares of Western Digital from $325.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Finally, Evercore reiterated an "outperform" rating and set a $575.00 price target on shares of Western Digital in a research note on Tuesday, May 26th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $450.46.

Western Digital News Roundup

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

• Positive Sentiment: Micron’s strong quarterly results reinforced the AI-driven memory shortage theme, which has lifted Western Digital along with other memory stocks. Western Digital Stock And Seagate Get Boost From Big Micron Earnings Beat
• Positive Sentiment: Analysts and commentators continue to highlight strong AI memory demand, rising estimate revisions, and favorable supply-demand dynamics for WDC. Micron's Robust Q3 Results Raise Investor Attention on These 3 Stocks
• Neutral Sentiment: Reports of SK Hynix planning a Nasdaq listing on July 10 add more attention to the broader memory ecosystem, but the direct impact on WDC is unclear. Is the Roundhill Memory ETF (DRAM) a Buy Before July 10?
• Negative Sentiment: After the sector’s big rally, memory and semiconductor stocks are pulling back as investors take profits and worry that memory and storage costs may have gotten ahead of fundamentals. MU, SNDK, WDC: 3 Key Reasons Why Memory Stocks Are Falling Today
• Negative Sentiment: Broader tech-sector weakness is weighing on WDC alongside other chip names, adding to the selloff in the group. Semiconductor stocks retreat over worries about memory costs

Insider Buying and Selling

In related news, insider Cynthia L. Tregillis sold 432 shares of the business's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $545.60, for a total value of $235,699.20. Following the transaction, the insider owned 116,643 shares in the company, valued at $63,640,420.80. The trade was a 0.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vidyadhara K. Gubbi sold 4,674 shares of Western Digital stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $443.19, for a total value of $2,071,470.06. Following the completion of the transaction, the insider owned 90,041 shares in the company, valued at $39,905,270.79. This trade represents a 4.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 29,322 shares of company stock worth $12,768,550. Corporate insiders own 0.18% of the company's stock.

About Western Digital

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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