Primecap Management Co. CA Reduces Stock Holdings in Western Digital Corporation (NASDAQ:WDC)

Key Points

• Primecap Management Co. CA has reduced its stake in Western Digital Corporation by 3.2%, holding 1,121,555 shares valued at approximately $45.34 million.
2.7%, currently trading at about $73.78 with a market capitalization of $25.74 billion.
• The company recently reported earnings exceeding analysts' expectations, with revenue of $2.61 billion for the quarter and an EPS of $1.66.

Primecap Management Co. CA reduced its stake in shares of Western Digital Corporation (NASDAQ:WDC - Free Report) by 3.2% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,121,555 shares of the data storage provider's stock after selling 37,060 shares during the quarter. Primecap Management Co. CA owned approximately 0.32% of Western Digital worth $45,344,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Freestone Grove Partners LP bought a new stake in shares of Western Digital during the 4th quarter valued at $68,950,000. Atalan Capital Partners LP purchased a new position in Western Digital during the 4th quarter valued at about $62,612,000. Sachem Head Capital Management LP boosted its stake 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 worth $176,976,000 after acquiring an additional 937,900 shares in the last quarter. Park West Asset Management LLC purchased a new stake in Western Digital in the fourth quarter worth about $55,456,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of 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 institutional investors.

Western Digital Stock Down 2.7%

Shares of WDC stock opened at $73.78 on Thursday. The company has a 50 day simple moving average of $63.67 and a two-hundred day simple moving average of $54.13. The stock has a market cap of $25.74 billion, a P/E ratio of 14.33, a P/E/G ratio of 0.91 and a beta of 1.58. Western Digital Corporation has a 12 month low of $28.83 and a 12 month high of $78.80. 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 (NASDAQ:WDC - Get Free Report) last announced its earnings results on Wednesday, July 30th. The data storage provider reported $1.66 EPS for the quarter, topping analysts' consensus estimates of $1.48 by $0.18. Western Digital had a return on equity of 24.93% and a net margin of 14.13%. The company had revenue of $2.61 billion for the quarter, compared to analysts' expectations of $2.45 billion. During the same period last year, the firm earned $1.44 EPS. Western Digital's revenue for the quarter was up 30.0% compared to the same quarter last year. On average, research analysts expect that Western Digital Corporation will post 4.89 earnings per share for the current year.

Western Digital declared that its Board of Directors has approved a stock buyback plan 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 purchase up to 11.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company's leadership believes its shares are undervalued.

Western Digital Announces Dividend

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

Insider Activity at Western Digital

In other Western Digital news, SVP Gene M. Zamiska sold 1,729 shares of Western Digital stock in a transaction that occurred on Thursday, June 5th. The shares were 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 of the company's stock, valued at $2,200,084.32. The trade was a 4.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Irving Tan sold 11,379 shares of the 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 completion of the sale, the chief executive officer directly owned 605,481 shares of the company's stock, valued at approximately $29,178,129.39. This trade represents a 1.84% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 13,353 shares of company stock valued at $657,454 over the last three months. 0.30% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. TD Cowen upped their price target on Western Digital from $58.00 to $90.00 and gave the stock a "buy" rating in a research note on Thursday, July 31st. Benchmark raised their price target on Western Digital from $58.00 to $85.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Wall Street Zen began coverage on shares of Western Digital in a research note on Friday, May 2nd. They issued a "hold" rating on the stock. 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 report on Thursday, July 31st. Finally, Rosenblatt Securities lifted their target price on shares of Western Digital from $53.00 to $90.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Four analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. According to data from MarketBeat.com, Western Digital 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.

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