Burren Capital Advisors Ltd Invests $1.23 Million in Western Digital Corporation (NASDAQ:WDC)

Burren Capital Advisors Ltd purchased a new stake in shares of Western Digital Corporation (NASDAQ:WDC) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 30,360 shares of the data storage provider’s stock, valued at approximately $1,227,000. Western Digital makes up about 4.4% of Burren Capital Advisors Ltd’s investment portfolio, making the stock its 10th largest position.

Other institutional investors have also recently bought and sold shares of the company. Elequin Capital LP acquired a new position in shares of Western Digital during the fourth quarter worth approximately $40,000. Allworth Financial LP raised its position in Western Digital by 34.1% in the 1st quarter. Allworth Financial LP now owns 955 shares of the data storage provider’s stock worth $38,000 after purchasing an additional 243 shares during the last quarter. MorganRosel Wealth Management LLC acquired a new position in Western Digital during the 1st quarter worth $40,000. GeoWealth Management LLC boosted its position in Western Digital by 91.6% in the 4th quarter. GeoWealth Management LLC now owns 1,044 shares of the data storage provider’s stock valued at $62,000 after buying an additional 499 shares during the last quarter. Finally, Whittier Trust Co. of Nevada Inc. increased its stake in shares of Western Digital by 242.2% in the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 1,208 shares of the data storage provider’s stock valued at $49,000 after buying an additional 855 shares during the period. Institutional investors own 92.51% of the company’s stock.

Western Digital Stock Performance

NASDAQ WDC opened at $68.82 on Friday. The stock has a market cap of $24.01 billion, a PE ratio of 13.03 and a beta of 1.54. The company has a debt-to-equity ratio of 0.95, a quick ratio of 1.31 and a current ratio of 1.56. The firm has a 50-day moving average of $59.91 and a 200-day moving average of $53.56. Western Digital Corporation has a 52-week low of $28.83 and a 52-week high of $69.72.

Western Digital (NASDAQ:WDC) last announced its earnings results on Wednesday, April 30th. The data storage provider reported $1.36 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.30. The company had revenue of ($1,465.00) million for the quarter, compared to analyst estimates of $2.70 billion. Western Digital had a return on equity of 20.58% and a net margin of 13.33%. The firm’s quarterly revenue was down 33.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.63 earnings per share. On average, sell-side analysts anticipate that Western Digital Corporation will post 4.89 EPS for the current year.

Western Digital announced that its Board of Directors has authorized a stock repurchase program on Tuesday, May 13th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the data storage provider to purchase up to 11.7% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Western Digital Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 18th. Stockholders of record on Wednesday, June 4th were given a $0.10 dividend. The ex-dividend date of this dividend was Wednesday, June 4th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.58%. Western Digital’s payout ratio is 7.58%.

Insider Activity at Western Digital

In related news, SVP Gene M. Zamiska sold 1,729 shares of the company’s stock in a transaction dated Thursday, June 5th. The shares were sold at an average price of $54.88, for a total transaction of $94,887.52. Following the completion of the sale, the senior vice president owned 40,089 shares of the company’s stock, valued at $2,200,084.32. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Irving Tan sold 11,379 shares of the stock in a transaction dated Tuesday, May 13th. The stock was sold at an average price of $48.19, for a total transaction of $548,354.01. Following the sale, the chief executive officer owned 605,481 shares in the company, valued at $29,178,129.39. The trade was a 1.84% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 13,353 shares of company stock valued at $657,454. 0.30% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on WDC shares. JPMorgan Chase & Co. raised shares of Western Digital from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $45.00 to $57.00 in a research note on Thursday, May 1st. Wells Fargo & Company raised their price target on Western Digital from $65.00 to $80.00 and gave the stock an “overweight” rating in a research report on Thursday, July 17th. Wall Street Zen started coverage on Western Digital in a research note on Friday, May 2nd. They set a “hold” rating for the company. TD Cowen dropped their price objective on Western Digital from $80.00 to $58.00 and set a “buy” rating for the company in a report on Thursday, May 1st. Finally, TD Securities reduced their target price on Western Digital from $80.00 to $53.00 and set a “buy” rating on the stock in a report on Thursday, May 1st. Four research analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $66.84.

About Western Digital

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.