53 House LLP Makes New Investment in Western Digital Corporation $WDC

Key Points

• 53 House LLP has acquired a new position in Western Digital Corporation, purchasing 280,201 shares valued at approximately $11.3 million, making it the firm’s 5th largest investment.
• Western Digital reported earnings per share of $1.66, surpassing analyst estimates of $1.48 and showing a 30% revenue increase year-over-year.
• The company has announced a quarterly dividend of $0.10 per share, with a yield of 0.5%, and a payout ratio of 7.77%.

53 House LLP bought a new position in shares of Western Digital Corporation (NASDAQ:WDC - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 280,201 shares of the data storage provider's stock, valued at approximately $11,329,000. Western Digital makes up 10.0% of 53 House LLP's portfolio, making the stock its 5th largest position. 53 House LLP owned 0.08% of Western Digital at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in WDC. Kayne Anderson Rudnick Investment Management LLC increased its holdings in shares of Western Digital by 502.4% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 7,319 shares of the data storage provider's stock worth $296,000 after purchasing an additional 6,104 shares during the period. Comerica Bank grew its stake in shares of Western Digital by 91.7% during the first quarter. Comerica Bank now owns 137,391 shares of the data storage provider's stock valued at $5,555,000 after buying an additional 65,710 shares during the last quarter. Jump Financial LLC grew its stake in shares of Western Digital by 18.4% during the first quarter. Jump Financial LLC now owns 80,000 shares of the data storage provider's stock valued at $3,234,000 after buying an additional 12,436 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of Western Digital by 28.0% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 5,940 shares of the data storage provider's stock worth $240,000 after purchasing an additional 1,300 shares during the period. Finally, Allstate Corp boosted its holdings in shares of Western Digital by 87.2% during the first quarter. Allstate Corp now owns 19,170 shares of the data storage provider's stock worth $775,000 after purchasing an additional 8,929 shares during the period. Hedge funds and other institutional investors own 92.51% of the company's stock.

Western Digital Stock Performance

NASDAQ:WDC traded down $1.84 during trading hours on Friday, reaching $80.20. The company had a trading volume of 1,804,503 shares, compared to its average volume of 7,796,837. 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 52 week low of $28.83 and a 52 week high of $82.32. The firm has a market cap of $27.98 billion, a price-to-earnings ratio of 15.57, a PEG ratio of 0.97 and a beta of 1.58. The firm's 50 day moving average price is $70.44 and its 200-day moving average price is $55.37.

Western Digital (NASDAQ:WDC - Get Free Report) last posted 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 net margin of 14.13% and a return on equity of 24.93%. The business had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.45 billion. During the same quarter in the previous year, the firm posted $1.44 EPS. The firm's revenue was up 30.0% on a year-over-year basis. Western Digital has set its Q1 2026 guidance at 1.540-1.690 EPS. On average, analysts forecast that Western Digital Corporation will post 4.89 EPS for the current year.

Western Digital Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Thursday, September 4th will be given a dividend of $0.10 per share. 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 currently 7.77%.

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

Analyst Ratings Changes

Several analysts have commented on WDC shares. Benchmark raised their price objective on shares of Western Digital from $58.00 to $85.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Loop Capital restated a "buy" rating on shares of Western Digital in a report on Tuesday, May 6th. Susquehanna raised 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 for the company. Finally, Wedbush raised their target price on shares of Western Digital from $78.00 to $90.00 and gave the company an "outperform" rating in a research note on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, Western Digital presently has an average rating of "Moderate Buy" and a consensus price target of $78.39.

Insider Activity

In related news, insider Cynthia L. Tregillis sold 14,067 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $74.78, for a total value of $1,051,930.26. Following the sale, the insider directly owned 135,351 shares of the company's stock, valued at $10,121,547.78. This represents a 9.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Gene M. Zamiska sold 353 shares of the stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $80.90, for a total transaction of $28,557.70. Following the completion of the sale, the senior vice president directly owned 27,425 shares in the company, valued at $2,218,682.50. This trade represents a 1.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 40,361 shares of company stock valued at $3,006,534. Company insiders own 0.30% of the company's stock.

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.