FengHe Fund Management Pte. Ltd. Buys New Shares in Western Digital Corporation (NASDAQ:WDC)

Key Points

• FengHe Fund Management has acquired a new stake in Western Digital Corporation, purchasing 57,900 shares valued at approximately $2.34 million, which constitutes 0.9% of its investment portfolio.
• Western Digital reported a quarterly earnings per share (EPS) of $1.66, surpassing the consensus estimate of $1.48, alongside a revenue of $2.61 billion, marking a 30% year-over-year increase.
• The company recently announced a quarterly dividend of $0.10 per share, reflecting a 0.5% yield, and has also authorized a stock buyback plan allowing for repurchases of up to $2 billion in shares.

FengHe Fund Management Pte. Ltd. bought a new stake in Western Digital Corporation (NASDAQ:WDC - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 57,900 shares of the data storage provider's stock, valued at approximately $2,341,000. Western Digital accounts for 0.9% of FengHe Fund Management Pte. Ltd.'s investment portfolio, making the stock its 24th largest holding.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Wealth Enhancement Advisory Services LLC raised its stake in Western Digital by 52.9% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 28,838 shares of the data storage provider's stock valued at $1,166,000 after buying an additional 9,974 shares in the last quarter. Westfield Capital Management Co. LP acquired a new stake in Western Digital in the first quarter valued at $35,406,000. Asset Management One Co. Ltd. raised its stake in Western Digital by 5.1% in the first quarter. Asset Management One Co. Ltd. now owns 144,307 shares of the data storage provider's stock valued at $5,834,000 after buying an additional 6,947 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd raised its stake in Western Digital by 6.8% in the first quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 89,244 shares of the data storage provider's stock valued at $3,608,000 after buying an additional 5,711 shares in the last quarter. Finally, Crossmark Global Holdings Inc. raised its stake in Western Digital by 1.6% in the first quarter. Crossmark Global Holdings Inc. now owns 242,349 shares of the data storage provider's stock valued at $9,798,000 after buying an additional 3,920 shares in the last quarter. 92.51% of the stock is currently owned by hedge funds and other institutional investors.

Western Digital Price Performance

Shares of WDC opened at $75.91 on Wednesday. The stock's 50 day moving average is $65.46 and its two-hundred day moving average is $54.25. The firm has a market capitalization of $26.48 billion, a PE ratio of 14.74, a P/E/G ratio of 0.90 and a beta of 1.58. The company has a current ratio of 1.08, a quick ratio of 0.84 and a debt-to-equity ratio of 0.47. Western Digital Corporation has a twelve month low of $28.83 and a twelve month high of $78.80.

Western Digital (NASDAQ:WDC - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The data storage provider reported $1.66 EPS for the quarter, topping the consensus estimate of $1.48 by $0.18. Western Digital had a return on equity of 24.93% and a net margin of 14.13%. The business had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.45 billion. During the same quarter in the previous year, the company earned $1.44 EPS. The company's quarterly revenue was up 30.0% on a year-over-year basis. Research analysts anticipate that Western Digital Corporation will post 4.89 earnings per share for the current year.

Western Digital Announces Dividend

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

Western Digital declared that its Board of Directors has authorized a stock buyback plan on Tuesday, May 13th that allows the company to repurchase $2.00 billion in shares. This repurchase authorization allows the data storage provider to repurchase up to 11.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

A number of analysts have weighed in on WDC shares. Summit Insights upgraded Western Digital from a "hold" rating to a "buy" rating in a research note on Wednesday, April 30th. Loop Capital reiterated a "buy" rating on shares of Western Digital in a research report on Tuesday, May 6th. Wells Fargo & Company lifted their target price on Western Digital from $80.00 to $95.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Mizuho lifted their target price on Western Digital from $75.00 to $87.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Finally, TD Cowen lifted their target price on Western Digital from $58.00 to $90.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Four analysts have rated the stock with a hold rating and eighteen have given a buy rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $78.74.

Insider Transactions at Western Digital

In other Western Digital news, SVP Gene M. Zamiska sold 1,729 shares of the business's stock in a transaction on Thursday, June 5th. The stock was sold at an average price of $54.88, for a total value of $94,887.52. Following the completion of the transaction, 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 position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.30% of the company's stock.

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.

Want to see what other hedge funds are holding WDC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Western Digital Corporation (NASDAQ:WDC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.