AI Squared Management Ltd Takes Position in Western Digital Corporation (NASDAQ:WDC)

Key Points

• AI Squared Management Ltd acquired a new stake in Western Digital Corporation (NASDAQ:WDC), purchasing 165,653 shares valued at approximately $6.7 million, making it the firm's 5th largest holding.
• Western Digital announced a $2 billion stock repurchase program, indicating confidence in the stock's undervaluation, and recently declared a quarterly dividend of $0.10 per share.
• The company reported earnings per share of $1.66 for the last quarter, exceeding analysts' expectations, with a revenue increase of 30% year-over-year.

AI Squared Management Ltd bought a new position in Western Digital Corporation (NASDAQ:WDC - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor bought 165,653 shares of the data storage provider's stock, valued at approximately $6,697,000. Western Digital accounts for about 6.2% of AI Squared Management Ltd's holdings, making the stock its 5th largest holding.

Other hedge funds also recently bought and sold shares of the company. Elequin Capital LP purchased a new stake in Western Digital in the 4th quarter worth $40,000. Allworth Financial LP raised its position in shares of Western Digital by 34.1% during the 1st 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 in the last quarter. MorganRosel Wealth Management LLC purchased a new stake in shares of Western Digital during the 1st quarter valued at about $40,000. GeoWealth Management LLC raised its position in Western Digital by 91.6% in the 4th quarter. GeoWealth Management LLC now owns 1,044 shares of the data storage provider's stock worth $62,000 after purchasing an additional 499 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. raised its position in Western Digital by 242.2% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 1,208 shares of the data storage provider's stock worth $49,000 after purchasing an additional 855 shares during the period. Institutional investors own 92.51% of the company's stock.

Insider Activity

In related news, CEO Irving Tan sold 11,379 shares of the business's stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $48.19, for a total transaction of $548,354.01. Following the transaction, the chief executive officer directly owned 605,481 shares in the company, valued at approximately $29,178,129.39. The trade was a 1.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, SVP Gene M. Zamiska sold 1,729 shares of the business's stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $54.88, for a total transaction of $94,887.52. Following the transaction, the senior vice president owned 40,089 shares in the company, valued at $2,200,084.32. The trade was a 4.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 13,353 shares of company stock worth $657,454. Company insiders own 0.30% of the company's stock.

Western Digital Stock Performance

Shares of Western Digital stock traded up $0.19 during trading on Monday, hitting $75.16. 2,270,571 shares of the company's stock were exchanged, compared to its average volume of 7,979,924. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.84 and a current ratio of 1.08. The business has a 50-day simple moving average of $64.57 and a 200-day simple moving average of $54.05. Western Digital Corporation has a 52-week low of $28.83 and a 52-week high of $78.80. The stock has a market capitalization of $26.22 billion, a price-to-earnings ratio of 14.55, a PEG ratio of 0.90 and a beta of 1.58.

Western Digital (NASDAQ:WDC - Get Free Report) last released its quarterly earnings data 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 company had revenue of $2.61 billion during the quarter, compared to analysts' expectations of $2.45 billion. During the same quarter in the previous year, the company earned $1.44 earnings per share. The firm's revenue for the quarter was up 30.0% on a year-over-year basis. On average, research analysts forecast that Western Digital Corporation will post 4.89 EPS for the current year.

Western Digital declared that its board has approved a stock repurchase program 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 stock through open market purchases. Stock buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Western Digital Announces Dividend

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

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Loop Capital reissued a "buy" rating on shares of Western Digital in a research report on Tuesday, May 6th. TD Securities reduced their target price on shares of Western Digital from $80.00 to $53.00 and set a "buy" rating on the stock in a research report on Thursday, May 1st. Wedbush raised their target price on shares of Western Digital from $78.00 to $90.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. Summit Insights raised shares of Western Digital from a "hold" rating to a "buy" rating in a research report on Wednesday, April 30th. Finally, Wells Fargo & Company increased their price objective on shares of Western Digital from $80.00 to $95.00 and gave the company an "overweight" rating in a research note on Thursday, July 31st. Four equities research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company's stock. Based on data from MarketBeat.com, Western Digital currently has an average rating of "Moderate Buy" and an average price target of $78.74.

About Western Digital

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.