Western Digital (WDC) Lifted to Buy at Summit Redstone
A number of other analysts have also recently weighed in on WDC. Jefferies Group restated a hold rating and issued a $90.00 price target on shares of Western Digital in a research note on Friday, August 18th. BidaskClub upgraded Western Digital from a sell rating to a hold rating in a research note on Wednesday. UBS cut their price target on Western Digital to $88.00 and set a neutral rating on the stock in a research note on Wednesday. Citigroup set a $110.00 price target on Western Digital and gave the company a buy rating in a research note on Monday, August 21st. Finally, Robert W. Baird cut Western Digital from an outperform rating to a neutral rating and cut their price target for the company from $120.00 to $93.00 in a research note on Monday, October 2nd. Nine analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and three have issued a strong buy rating to the stock. Western Digital presently has an average rating of Buy and an average target price of $113.10.
Shares of Western Digital (NASDAQ WDC) traded down $1.02 during midday trading on Wednesday, hitting $81.62. The stock had a trading volume of 7,159,064 shares, compared to its average volume of 4,156,775. The firm has a market capitalization of $24,443.80, a PE ratio of 8.30, a P/E/G ratio of 0.22 and a beta of 1.10. The company has a debt-to-equity ratio of 1.07, a quick ratio of 2.13 and a current ratio of 2.64. Western Digital has a twelve month low of $66.91 and a twelve month high of $95.77.
Western Digital (NASDAQ:WDC) last announced its quarterly earnings data on Thursday, October 26th. The data storage provider reported $3.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.01 by $0.55. The business had revenue of $5.18 billion for the quarter, compared to analysts’ expectations of $5.13 billion. Western Digital had a return on equity of 26.48% and a net margin of 7.38%. The company’s revenue for the quarter was up 9.9% compared to the same quarter last year. During the same period last year, the firm earned $1.18 earnings per share. sell-side analysts expect that Western Digital will post 12.21 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 16th. Shareholders of record on Friday, December 29th will be issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 2.45%. The ex-dividend date is Thursday, December 28th. Western Digital’s payout ratio is 41.75%.
Western Digital declared that its Board of Directors has initiated a stock repurchase program on Thursday, November 9th that permits the company to buyback $2.10 billion in outstanding shares. This buyback authorization permits the data storage provider to reacquire shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.
In related news, CFO Mark P. Long sold 4,467 shares of the firm’s stock in a transaction dated Monday, November 13th. The stock was sold at an average price of $88.13, for a total transaction of $393,676.71. Following the transaction, the chief financial officer now owns 88,384 shares of the company’s stock, valued at $7,789,281.92. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Henry T. Denero sold 4,097 shares of the firm’s stock in a transaction dated Monday, October 30th. The stock was sold at an average price of $85.97, for a total value of $352,219.09. Following the transaction, the director now directly owns 10,834 shares in the company, valued at approximately $931,398.98. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 24,042 shares of company stock worth $2,116,143. Corporate insiders own 0.31% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in WDC. Global X Management Co. LLC grew its holdings in shares of Western Digital by 28.9% during the second quarter. Global X Management Co. LLC now owns 7,836 shares of the data storage provider’s stock worth $694,000 after buying an additional 1,757 shares during the last quarter. Schwab Charles Investment Management Inc. grew its holdings in shares of Western Digital by 7.7% during the second quarter. Schwab Charles Investment Management Inc. now owns 1,065,412 shares of the data storage provider’s stock worth $94,396,000 after buying an additional 76,581 shares during the last quarter. Shufro Rose & Co. LLC grew its holdings in shares of Western Digital by 16.6% during the second quarter. Shufro Rose & Co. LLC now owns 7,374 shares of the data storage provider’s stock worth $653,000 after buying an additional 1,051 shares during the last quarter. LMR Partners LLP grew its holdings in shares of Western Digital by 44.7% during the second quarter. LMR Partners LLP now owns 10,323 shares of the data storage provider’s stock worth $915,000 after buying an additional 3,188 shares during the last quarter. Finally, State of Wisconsin Investment Board grew its holdings in shares of Western Digital by 15.6% during the second quarter. State of Wisconsin Investment Board now owns 332,305 shares of the data storage provider’s stock worth $29,442,000 after buying an additional 44,752 shares during the last quarter. 83.99% of the stock is currently owned by hedge funds and other institutional investors.
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About Western Digital
Western Digital Corporation (Western Digital) is a developer, manufacturer and provider of data storage devices and solutions that address the needs of the information technology (IT) industry and the infrastructure that enables the proliferation of data in virtually every industry. The Company’s portfolio of offerings addresses three categories: Datacenter Devices and Solutions (capacity and performance enterprise hard disk drives (HDDs), enterprise solid state drives (SSDs), datacenter software and system solutions); Client Devices (mobile, desktop, gaming and digital video hard drives, client SSDs, embedded products and wafers), and Client Solutions (removable products, hard drive content solutions and flash content solutions).
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