Primecap Management Co. CA Invests $329.86 Million in Western Digital Corporation $WDC

Primecap Management Co. CA bought a new position in shares of Western Digital Corporation (NASDAQ:WDC) during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund bought 516,440 shares of the data storage provider’s stock, valued at approximately $329,861,000. Primecap Management Co. CA owned 0.15% of Western Digital as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of WDC. Dogwood Wealth Management LLC lifted its stake in Western Digital by 28.6% during the second quarter. Dogwood Wealth Management LLC now owns 90 shares of the data storage provider’s stock valued at $57,000 after buying an additional 20 shares in the last quarter. Legacy Wealth Asset Management LLC boosted its holdings in shares of Western Digital by 1.0% in the second quarter. Legacy Wealth Asset Management LLC now owns 2,302 shares of the data storage provider’s stock worth $1,470,000 after buying an additional 22 shares during the period. Everpar Advisors LLC increased its position in shares of Western Digital by 1.8% in the second quarter. Everpar Advisors LLC now owns 1,442 shares of the data storage provider’s stock worth $921,000 after acquiring an additional 25 shares in the last quarter. Ares Financial Consulting LLC increased its position in shares of Western Digital by 45.5% in the second quarter. Ares Financial Consulting LLC now owns 80 shares of the data storage provider’s stock worth $51,000 after acquiring an additional 25 shares in the last quarter. Finally, Dynamic Advisor Solutions LLC raised its holdings in shares of Western Digital by 2.1% during the second quarter. Dynamic Advisor Solutions LLC now owns 1,390 shares of the data storage provider’s stock valued at $888,000 after acquiring an additional 28 shares during the period. 92.51% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on WDC shares. Wells Fargo & Company raised their price objective on shares of Western Digital from $575.00 to $730.00 and gave the stock an “overweight” rating in a research note on Friday, July 10th. The Goldman Sachs Group reissued a “neutral” rating and set a $400.00 target price on shares of Western Digital in a research note on Friday, May 1st. Robert W. Baird set a $630.00 target price on Western Digital in a report on Thursday, August 6th. Morgan Stanley reaffirmed an “overweight” rating and issued a $676.00 target price on shares of Western Digital in a research report on Thursday, August 6th. Finally, UBS Group lowered their price target on Western Digital from $560.00 to $525.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $534.56.

Western Digital Stock Up 3.5%

WDC stock opened at $450.75 on Wednesday. The company has a market capitalization of $155.36 billion, a price-to-earnings ratio of 18.62 and a beta of 2.14. Western Digital Corporation has a 12 month low of $77.90 and a 12 month high of $799.87. The firm has a 50 day moving average of $543.27 and a two-hundred day moving average of $436.75.

Western Digital (NASDAQ:WDC) last posted its earnings results on Wednesday, August 5th. The data storage provider reported $3.56 earnings per share for the quarter, topping the consensus estimate of $3.31 by $0.25. The firm had revenue of $3.75 billion during the quarter, compared to analyst estimates of $3.70 billion. Western Digital had a return on equity of 48.15% and a net margin of 72.95%.The company’s revenue for the quarter was up 43.8% on a year-over-year basis. During the same period in the previous year, the company earned $1.66 EPS. Western Digital has set its Q1 2027 guidance at 3.850-4.150 EPS. On average, research analysts expect that Western Digital Corporation will post 19.65 EPS for the current fiscal year.

Western Digital Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 17th. Investors of record on Tuesday, September 8th will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 0.1%. The ex-dividend date is Tuesday, September 8th. Western Digital’s dividend payout ratio (DPR) is presently 2.48%.

Insider Transactions at Western Digital

In related news, Director Bruce E. Kiddoo sold 750 shares of the stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $528.52, for a total value of $396,390.00. Following the completion of the transaction, the director owned 3,903 shares of the company’s stock, valued at $2,062,813.56. This represents a 16.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Cynthia L. Tregillis sold 684 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $446.17, for a total value of $305,180.28. Following the completion of the sale, the insider owned 112,146 shares in the company, valued at approximately $50,036,180.82. This represents a 0.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 25,384 shares of company stock valued at $11,753,463 in the last ninety days. 0.18% of the stock is owned by corporate insiders.

Western Digital News Summary

Here are the key news stories impacting Western Digital this week:

• Positive Sentiment: Analysts remain bullish on Western Digital’s growth outlook. Recent quarterly results exceeded expectations, with EPS of $3.56 and revenue of $3.75 billion, up 43.8% year over year. Fiscal 2027 catalysts include rising hyperscale demand, improving margins, 40TB drive launches and HAMR technology. Prediction: This Memory Stock Will Soar 165% in 3 Years
• Positive Sentiment: Western Digital was highlighted as a top momentum and growth stock, with commentary pointing to strong earnings trends, AI-driven storage demand, cash generation and a potential memory shortage. Brokerages collectively maintain a “Moderate Buy” rating, with a consensus target price above the current trading level. Western Digital Is a Top-Ranked Growth Stock
• Neutral Sentiment: Western Digital will present at Citi’s 2026 Global TMT Conference on September 9. The event may provide updates on demand, pricing and its product ramp, but the announcement included no new guidance. WD to Participate in Upcoming Investor Conference
• Neutral Sentiment: Insider Cynthia Tregillis sold 919 shares in two transactions under a pre-arranged Rule 10b5-1 plan. The sales reduced her holdings only marginally and are unlikely to materially change the investment case. SEC insider transaction filing
• Negative Sentiment: Profit-taking and sector rotation ahead of Nvidia’s earnings report have pressured high-flying AI, memory and semiconductor stocks, including WDC. Investors are also monitoring valuation risk, cloud-customer concentration and execution requirements for upcoming products. Memory and Semiconductor Stocks Fall Ahead of Nvidia Earnings
• Negative Sentiment: Reports that Apple could source memory chips from Chinese suppliers have raised concerns about competition and pricing throughout the memory industry. A discounted 8TB WD My Book drive on Amazon is consumer-oriented news with little direct effect on WDC’s investment outlook. WD 8TB My Book External Hard Drive Price Cut

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.