CloudAlpha Capital Management Limited Hong Kong Acquires New Holdings in Western Digital Corporation $WDC

Key Points

• CloudAlpha Capital Management Limited Hong Kong opened a new position in Western Digital during the fourth quarter, buying 121,259 shares worth about $20.9 million. The stake makes WDC its 18th-largest holding and about 1% of its portfolio.
• Western Digital recently beat earnings expectations, reporting $2.72 EPS versus the $2.39 consensus and revenue of $3.34 billion, up 45.5% year over year. The company also raised its quarterly dividend from $0.13 to $0.15 per share.
• Analysts remain broadly positive on the stock, with several firms lifting price targets to as high as $500 and MarketBeat showing an average rating of “Moderate Buy.” That optimism is tied to strong AI-driven storage demand, though the article also notes recent insider selling and some near-term sector volatility.

CloudAlpha Capital Management Limited Hong Kong bought a new position in Western Digital Corporation (NASDAQ:WDC - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor bought 121,259 shares of the data storage provider's stock, valued at approximately $20,889,000. Western Digital comprises about 1.0% of CloudAlpha Capital Management Limited Hong Kong's investment portfolio, making the stock its 18th largest position.

Other large investors also recently made changes to their positions in the company. Avion Wealth increased its position in Western Digital by 163.8% in the 4th quarter. Avion Wealth now owns 182 shares of the data storage provider's stock valued at $31,000 after acquiring an additional 113 shares during the period. Concord Wealth Partners bought a new stake in Western Digital during the 4th quarter valued at $41,000. Cullen Frost Bankers Inc. boosted its position in Western Digital by 551.4% during the 3rd quarter. Cullen Frost Bankers Inc. now owns 241 shares of the data storage provider's stock worth $29,000 after acquiring an additional 204 shares during the period. Westfuller Advisors LLC bought a new position in shares of Western Digital in the third quarter worth $30,000. Finally, Cornerstone Planning Group LLC grew its stake in shares of Western Digital by 207.0% in the third quarter. Cornerstone Planning Group LLC now owns 264 shares of the data storage provider's stock worth $32,000 after purchasing an additional 178 shares in the last quarter. Institutional investors and hedge funds own 92.51% of the company's stock.

Western Digital Trading Down 0.6%

Shares of NASDAQ WDC opened at $455.80 on Wednesday. Western Digital Corporation has a twelve month low of $49.00 and a twelve month high of $525.15. The firm has a 50-day moving average of $360.35 and a two-hundred day moving average of $262.26. The company has a market capitalization of $157.11 billion, a price-to-earnings ratio of 27.21 and a beta of 2.10.

Western Digital (NASDAQ:WDC - Get Free Report) last released its earnings results on Thursday, April 30th. The data storage provider reported $2.72 EPS for the quarter, topping analysts' consensus estimates of $2.39 by $0.33. Western Digital had a net margin of 55.29% and a return on equity of 42.95%. The business had revenue of $3.34 billion for the quarter, compared to the consensus estimate of $3.25 billion. During the same period in the previous year, the firm earned $1.36 EPS. The business's revenue for the quarter was up 45.5% on a year-over-year basis. Western Digital has set its Q4 2026 guidance at 3.100-3.400 EPS. As a group, research analysts predict that Western Digital Corporation will post 9.57 earnings per share for the current year.

Western Digital Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 17th. Investors of record on Friday, June 5th will be issued a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date is Friday, June 5th. This is a positive change from Western Digital's previous quarterly dividend of $0.13. Western Digital's payout ratio is presently 2.99%.

Analysts Set New Price Targets

WDC has been the topic of a number of recent analyst reports. Wall Street Zen upgraded shares of Western Digital from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Truist Financial set a $310.00 target price on shares of Western Digital in a research note on Tuesday, February 3rd. Citigroup boosted their price target on shares of Western Digital from $405.00 to $500.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. JPMorgan Chase & Co. increased their price objective on shares of Western Digital from $320.00 to $400.00 and gave the company an "overweight" rating in a report on Thursday, April 16th. Finally, TD Cowen raised their price objective on shares of Western Digital from $325.00 to $500.00 and gave the company a "buy" rating in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $395.83.

Insider Activity

In related news, insider Vidyadhara K. Gubbi sold 4,674 shares of the stock in a transaction on Monday, May 4th. The stock was 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Irving Tan sold 20,000 shares of Western Digital stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $411.84, for a total value of $8,236,800.00. Following the completion of the transaction, the chief executive officer directly owned 598,150 shares in the company, valued at $246,342,096. This represents a 3.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 53,679 shares of company stock valued at $18,049,314 over the last three months. Insiders own 0.18% of the company's stock.

Key Headlines Impacting Western Digital

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

• Positive Sentiment: Western Digital announced industry-first post-quantum cryptography hard drives, reinforcing its pitch that it can win more AI data-center business by offering “quantum-safe” storage security for hyperscalers. WD Advances Next-Generation Trusted Infrastructure with Industry’s First Post-Quantum Cryptography Hard Drives to Help Secure the Future of AI Data
• Positive Sentiment: Multiple reports highlighted that AI infrastructure is driving a storage supercycle, with stronger pricing power for enterprise SSDs and hard drives; that backdrop is favorable for Western Digital’s revenue and margins. Seagate and Western Digital: AI Storage Demand Is Now Showing Up in Pricing Power
• Positive Sentiment: Analyst commentary suggests Western Digital’s fair value is being revised higher on stronger earnings expectations tied to AI storage demand, and one note cited a price target around $504, supporting the stock’s long-term bull case. Why The Western Digital (WDC) Story Is Shifting On New Earnings And AI Storage Expectations
• Positive Sentiment: Western Digital was added to the 2026 S&P Dow Jones Best-in-Class Index North America, a small but constructive inclusion that can improve visibility with institutional investors. Western Digital Corporation (WDC) Included in 2026 S&P Dow Jones Best-in-Class Index North America
• Neutral Sentiment: Shares were little changed in the session after a sharp sector-wide selloff, as memory stocks including Micron and SanDisk bounced while Western Digital lagged, suggesting WDC is being pulled around by broader group trading rather than company-specific news. Micron Is Up 6% Today: Is It Outperforming Other Memory Stocks Like SanDisk and Western Digital?
• Negative Sentiment: Near-term sentiment was pressured by reports of AI supply-chain and capacity-crunch fears across memory stocks, which sparked a premarket selloff in Western Digital and peers. Micron, Seagate, Western Digital Sink On Capacity Crunch Fears

Western Digital Company 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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