SummitTX Capital L.P. Makes New $4.75 Million Investment in Western Digital Corporation $WDC

Key Points

• SummitTX Capital purchased 17,557 Western Digital shares worth approximately $4.75 million in the first quarter. Institutional investors collectively own 92.51% of the company.
• Western Digital reported quarterly revenue of $3.34 billion and earnings of $2.72 per share, beating analyst estimates, while revenue rose 45.5% year over year.
• The company increased its quarterly dividend from $0.12 to $0.15 per share. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $520.32, although insiders sold nearly $12.6 million of stock in the latest quarter.

SummitTX Capital L.P. purchased a new stake in shares of Western Digital Corporation (NASDAQ:WDC - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 17,557 shares of the data storage provider's stock, valued at approximately $4,749,000.

A number of other institutional investors have also modified their holdings of WDC. Valley Wealth Managers Inc. purchased a new stake in Western Digital during the first quarter valued at approximately $32,000. Catalyst Capital Advisors LLC acquired a new stake in Western Digital in the first quarter valued at approximately $35,000. Cornerstone Planning Group LLC grew its holdings in Western Digital by 33.3% in the first quarter. Cornerstone Planning Group LLC now owns 132 shares of the data storage provider's stock worth $36,000 after purchasing an additional 33 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC grew its holdings in Western Digital by 80.2% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 146 shares of the data storage provider's stock worth $39,000 after purchasing an additional 65 shares during the last quarter. Finally, Global Trust Asset Management LLC acquired a new position in shares of Western Digital during the first quarter worth $47,000. 92.51% of the stock is currently owned by institutional investors.

Western Digital Stock Down 4.2%

Western Digital stock opened at $497.92 on Tuesday. The stock has a 50-day moving average price of $565.69 and a 200 day moving average price of $400.49. The company has a market capitalization of $171.62 billion, a price-to-earnings ratio of 29.73 and a beta of 2.11. Western Digital Corporation has a 52 week low of $68.67 and a 52 week high of $799.87.

Western Digital (NASDAQ:WDC - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The data storage provider reported $2.72 earnings per share for the quarter, topping the consensus estimate of $2.39 by $0.33. The company had revenue of $3.34 billion for the quarter, compared to the consensus estimate of $3.25 billion. Western Digital had a net margin of 55.29% and a return on equity of 42.95%. Western Digital's quarterly revenue was up 45.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.36 EPS. Western Digital has set its Q4 2026 guidance at 3.100-3.400 EPS. Research analysts anticipate that Western Digital Corporation will post 9.61 EPS for the current fiscal year.

Western Digital Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Friday, June 5th were issued a $0.15 dividend. The ex-dividend date of this dividend was Friday, June 5th. This is a positive change from Western Digital's previous quarterly dividend of $0.12. This represents a $0.60 annualized dividend and a yield of 0.1%. Western Digital's dividend payout ratio is currently 3.58%.

Analysts Set New Price Targets

WDC has been the subject of several analyst reports. Melius Research set a $1,050.00 price objective on Western Digital and gave the company a "buy" rating in a report on Monday, June 29th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $400.00 target price on shares of Western Digital in a research report on Friday, May 1st. Sanford C. Bernstein raised Western Digital from a "market perform" rating to an "outperform" rating and set a $340.00 price target for the company in a report on Tuesday, March 31st. TD Cowen boosted their price target on Western Digital from $325.00 to $500.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Finally, Morgan Stanley upped their price objective on shares of Western Digital from $488.00 to $650.00 and gave the company an "overweight" rating in a report on Monday, June 15th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat.com, Western Digital currently has an average rating of "Moderate Buy" and a consensus price target of $520.32.

Insider Buying and Selling

In other Western Digital news, Director Bruce E. Kiddoo sold 750 shares of Western Digital stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $528.52, for a total transaction of $396,390.00. Following the completion of the transaction, the director owned 3,903 shares in the company, valued at approximately $2,062,813.56. This trade represents a 16.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Vidyadhara K. Gubbi sold 2,475 shares of the business's stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $556.24, for a total value of $1,376,694.00. Following the completion of the transaction, the insider directly owned 85,154 shares of the company's stock, valued at approximately $47,366,060.96. This trade represents a 2.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 28,959 shares of company stock valued at $12,631,666 over the last quarter. 0.18% of the stock is currently owned by company insiders.

Western Digital 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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