Western Digital Corporation $WDC is Nishkama Capital LLC's 6th Largest Position

Key Points

• Nishkama Capital LLC significantly increased its stake in Western Digital by 682.6%, now holding 586,129 shares, making it the fund's 6th largest position.
• Western Digital recently reported a quarterly EPS of $1.66, exceeding expectations, and set its Q1 2026 EPS guidance at 1.540-1.690.
• The company has approved a $2.00 billion stock buyback program, indicating a belief that its stock is undervalued.

Nishkama Capital LLC increased its stake in Western Digital Corporation (NASDAQ:WDC - Free Report) by 682.6% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 586,129 shares of the data storage provider's stock after acquiring an additional 511,238 shares during the period. Western Digital makes up 2.5% of Nishkama Capital LLC's investment portfolio, making the stock its 6th largest position. Nishkama Capital LLC owned about 0.17% of Western Digital worth $23,697,000 as of its most recent filing with the SEC.

Several other hedge funds have also modified their holdings of the stock. Wealth Enhancement Advisory Services LLC boosted its stake in shares of 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 purchasing an additional 9,974 shares during the period. Westfield Capital Management Co. LP acquired a new stake in Western Digital during the 1st quarter valued at $35,406,000. Asset Management One Co. Ltd. grew its holdings in Western Digital by 5.1% during the 1st quarter. Asset Management One Co. Ltd. now owns 144,307 shares of the data storage provider's stock valued at $5,834,000 after purchasing an additional 6,947 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd grew its holdings in Western Digital by 6.8% during the 1st 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 purchasing an additional 5,711 shares in the last quarter. Finally, Crossmark Global Holdings Inc. grew its holdings in Western Digital by 1.6% during the 1st quarter. Crossmark Global Holdings Inc. now owns 242,349 shares of the data storage provider's stock valued at $9,798,000 after purchasing an additional 3,920 shares in the last quarter. 92.51% of the stock is owned by institutional investors and hedge funds.

Western Digital Price Performance

NASDAQ WDC opened at $76.97 on Monday. The company's 50 day simple moving average is $68.70 and its 200 day simple moving average is $54.83. The firm has a market capitalization of $26.85 billion, a PE ratio of 14.95, a P/E/G ratio of 0.93 and a beta of 1.58. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.08 and a quick ratio of 0.84. Western Digital Corporation has a 12 month low of $28.83 and a 12 month high of $78.80.

Western Digital (NASDAQ:WDC - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The data storage provider reported $1.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.48 by $0.18. The company had revenue of $2.61 billion for the quarter, compared to analysts' expectations of $2.45 billion. Western Digital had a net margin of 14.13% and a return on equity of 24.93%. The business's revenue was up 30.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.44 EPS. Western Digital has set its Q1 2026 guidance at 1.540-1.690 EPS. As a group, equities research analysts forecast that Western Digital Corporation will post 4.89 EPS for the current fiscal year.

Western Digital Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders 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 (DPR) is presently 7.77%.

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

Wall Street Analyst Weigh In

A number of analysts recently issued reports on WDC shares. Wall Street Zen initiated coverage on shares of Western Digital in a research note on Friday, May 2nd. They issued a "hold" rating for the company. Zacks Research raised shares of Western Digital from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 13th. Susquehanna increased their price objective on shares of Western Digital from $40.00 to $62.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. The Goldman Sachs Group initiated coverage on shares of Western Digital in a report on Thursday, July 10th. They issued a "neutral" rating and a $70.00 price objective on the stock. Finally, Morgan Stanley dropped their price objective on shares of Western Digital from $85.00 to $83.00 and set an "overweight" rating on the stock in a report on Tuesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $78.39.

Insiders Place Their Bets

In other news, SVP Gene M. Zamiska sold 1,729 shares of the business's 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 sale, the senior vice president owned 40,089 shares in the company, valued at $2,200,084.32. The trade was a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Irving Tan sold 8,621 shares of the business's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $75.90, for a total transaction of $654,333.90. Following the sale, the chief executive officer owned 594,836 shares in the company, valued at $45,148,052.40. This represents a 1.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 20,139 shares of company stock worth $1,485,812 over the last ninety days. 0.30% of the stock is currently owned by company insiders.

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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