Western Digital Corporation (NASDAQ:WDC) is Highland Peak Capital LLC's 2nd Largest Position

Key Points

• Highland Peak Capital LLC significantly increased its stake in Western Digital Corporation by 235.3%, acquiring an additional 498,380 shares during the first quarter, bringing its total holdings to 710,231 shares.
• Western Digital reported strong financial performance, with a 30% year-over-year increase in revenue and earnings per share of $1.66, beating estimates by $0.18.
• The company announced a quarterly dividend of $0.10 per share, reflecting a 0.5% dividend yield and a payout ratio of 7.77%.

Highland Peak Capital LLC lifted its position in Western Digital Corporation (NASDAQ:WDC - Free Report) by 235.3% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 710,231 shares of the data storage provider's stock after buying an additional 498,380 shares during the period. Western Digital makes up about 21.1% of Highland Peak Capital LLC's investment portfolio, making the stock its 2nd biggest position. Highland Peak Capital LLC owned approximately 0.20% of Western Digital worth $28,715,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Freestone Grove Partners LP purchased a new position in Western Digital during the fourth quarter valued at $68,950,000. Atalan Capital Partners LP purchased a new position in Western Digital during the fourth quarter valued at $62,612,000. Sachem Head Capital Management LP lifted its position in Western Digital by 46.2% during the fourth quarter. Sachem Head Capital Management LP now owns 2,967,900 shares of the data storage provider's stock valued at $176,976,000 after purchasing an additional 937,900 shares in the last quarter. Park West Asset Management LLC purchased a new position in Western Digital during the fourth quarter valued at $55,456,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Western Digital by 23.7% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,592,516 shares of the data storage provider's stock valued at $273,852,000 after purchasing an additional 881,088 shares in the last quarter. 92.51% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Western Digital

In other Western Digital news, CEO Irving Tan sold 11,379 shares of the firm's stock in a transaction on Tuesday, May 13th. The stock was 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 $29,178,129.39. This trade represents a 1.84% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Gene M. Zamiska sold 1,729 shares of the company'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 sale, the senior vice president owned 40,089 shares of the company's stock, valued at approximately $2,200,084.32. This represents a 4.13% decrease in their position. The disclosure for this sale can be found here. Over 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 Trading Up 0.7%

WDC stock traded up $0.53 during mid-day trading on Friday, reaching $74.97. 4,983,586 shares of the stock traded hands, compared to its average volume of 7,507,482. Western Digital Corporation has a one year low of $28.83 and a one year high of $78.80. The stock has a market capitalization of $26.16 billion, a PE ratio of 14.56, a PEG ratio of 0.90 and a beta of 1.58. 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 moving average price of $64.57 and a two-hundred day moving average price of $54.15.

Western Digital (NASDAQ:WDC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The data storage provider reported $1.66 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to the consensus estimate of $2.45 billion. During the same period in the prior year, the firm posted $1.44 EPS. The firm's revenue was up 30.0% compared to the same quarter last year. Equities research analysts expect that Western Digital Corporation will post 4.89 EPS for the current year.

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

Western Digital Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on WDC. Benchmark lifted their target price on Western Digital from $58.00 to $85.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Mizuho raised their price target on Western Digital from $75.00 to $87.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Summit Insights raised Western Digital from a "hold" rating to a "buy" rating in a report on Wednesday, April 30th. Wall Street Zen began coverage on Western Digital in a report on Friday, May 2nd. They set a "hold" rating on the stock. Finally, Wells Fargo & Company raised their price target on Western Digital from $80.00 to $95.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Four investment 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 stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $78.74.

Western Digital Company 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.