34,063 Shares in Western Digital Corporation (NASDAQ:WDC) Purchased by Entropy Technologies LP

Key Points

• Entropy Technologies LP has acquired a new stake in Western Digital Corporation, purchasing 34,063 shares valued at approximately $1.38 million in the first quarter.
• Western Digital's quarterly earnings report showed a 30% increase in revenue year-over-year, with an EPS of $1.66, exceeding analysts' expectations.
• The company's Board of Directors authorized a $2 billion share buyback plan, signaling confidence in the company's valuation and future growth potential.

Entropy Technologies LP purchased a new position in shares of Western Digital Corporation (NASDAQ:WDC - Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 34,063 shares of the data storage provider's stock, valued at approximately $1,377,000.

A number of other hedge funds have also made changes to their positions in WDC. Elequin Capital LP acquired a new position in Western Digital in the fourth quarter worth $40,000. Zions Bancorporation National Association UT acquired a new position in Western Digital in the first quarter worth $29,000. Allworth Financial LP boosted its holdings in Western Digital by 34.1% in the first quarter. Allworth Financial LP now owns 955 shares of the data storage provider's stock worth $38,000 after purchasing an additional 243 shares during the period. MorganRosel Wealth Management LLC acquired a new position in Western Digital in the first quarter worth $40,000. Finally, GeoWealth Management LLC boosted its holdings in Western Digital by 91.6% in the fourth 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. Institutional investors and hedge funds own 92.51% of the company's stock.

Western Digital Stock Performance

Shares of NASDAQ WDC traded up $0.16 during midday trading on Wednesday, reaching $76.07. 5,298,604 shares of the company traded hands, compared to its average volume of 7,667,890. Western Digital Corporation has a 52 week low of $28.83 and a 52 week high of $78.80. The stock has a 50-day moving average price of $65.89 and a 200 day moving average price of $54.40. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.08 and a quick ratio of 0.84. The company has a market cap of $26.54 billion, a price-to-earnings ratio of 14.77, a PEG ratio of 0.91 and a beta of 1.58.

Western Digital (NASDAQ:WDC - Get Free Report) last issued 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 business had revenue of $2.61 billion for the quarter, compared to analysts' expectations of $2.45 billion. During the same period in the previous year, the business earned $1.44 earnings per share. The company's revenue was up 30.0% on a year-over-year basis. Sell-side analysts anticipate that Western Digital Corporation will post 4.89 earnings per share for the current fiscal year.

Western Digital announced that its Board of Directors has approved a stock repurchase program on Tuesday, May 13th that allows the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization allows the data storage provider to repurchase up to 11.7% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's management believes its shares are undervalued.

Western Digital Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders 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 yield of 0.5%. Western Digital's payout ratio is 7.77%.

Insider Activity

In other Western Digital news, SVP Gene M. Zamiska sold 1,729 shares of the business's stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $54.88, for a total value of $94,887.52. Following the sale, the senior vice president directly owned 40,089 shares in the company, valued at approximately $2,200,084.32. The trade was a 4.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Vidyadhara K. Gubbi sold 5,597 shares of the business's stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $76.26, for a total transaction of $426,827.22. Following the completion of the sale, the insider owned 154,679 shares in the company, valued at approximately $11,795,820.54. This trade represents a 3.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 11,518 shares of company stock worth $831,479. 0.30% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of equities analysts have commented on WDC shares. Summit Insights raised shares of Western Digital from a "hold" rating to a "buy" rating in a report on Wednesday, April 30th. UBS Group raised their target price on Western Digital from $45.00 to $75.00 and gave the company a "neutral" rating in a research note on Monday, July 21st. Citigroup raised their target price on Western Digital from $78.00 to $88.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Morgan Stanley cut their target price on Western Digital from $85.00 to $83.00 and set an "overweight" rating on the stock in a research note on Tuesday, July 29th. Finally, Barclays raised their target price on Western Digital from $50.00 to $80.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Four investment analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $78.74.

Western Digital 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.