Primecap Management 13F: Cuts WDC Stake by $113M

Primecap Management has made a notable move in its investment strategy by reducing its stake in Western Digital Corporation (NasdaqGS: WDC). The fund cut its holdings by 23.4%, selling off 176,330 shares. As of the latest SEC filing, Primecap now holds 577,210 shares valued at approximately $404.1 million. This adjustment in their portfolio reflects the fund's strategic reallocation as of the reporting period ending May 11, 2026.

What Changed in Primecap Management's Western Digital Position

Primecap Management has decreased its investment in Western Digital from 753,540 shares to 577,210 shares, marking a reduction of 176,330 shares. This change represents a 23.4% decrease in their holdings, with the remaining shares valued at about $404.1 million.

Other Institutional Activity in Western Digital

In the same period, BlackRock, Inc. added 259,704 shares of Western Digital, bringing its total to 35,769,222 shares worth approximately $9.68 billion. FMR LLC, however, reduced its stake by 2,170,383 shares, resulting in 31,623,418 shares valued at $8.55 billion. JPMorgan Chase & Co increased its holdings by 3,216,183 shares, ending with 17,512,148 shares worth $4.41 billion. Meanwhile, State Street Corp trimmed its position by 230,188 shares, holding 15,465,766 shares valued at $4.18 billion.

Western Digital Corporation Stock Up 76.1%

Shares of Western Digital are trading around $700.15. The company boasts a market cap of $234.8 billion, with a P/E ratio of 40.8 and a forward P/E of 37.7. It has a beta of 2.2, indicating higher volatility compared to the market. The stock's 52-week range spans from $58.53 to $729.92, with moving averages of $463.83 (50-day) and $259.63 (200-day). Western Digital maintains a current ratio of 1.49 and a quick ratio of 1.107, alongside a debt-to-equity ratio of 17.81.

Recent Earnings

For its most recent quarter, Western Digital reported revenue of $11.78 billion, with a growth rate of 45.5%. The company's net margin stands at 55.3%, and it achieved a return on equity of 85.9%. The next earnings report is scheduled for July 29, 2026.

Dividend

Western Digital offers an annual dividend rate of $0.60, yielding 0.09%. The dividend payout ratio is a modest 2.69%.

Insider Buying and Selling at Western Digital Corporation

In recent insider activity, Cole Martin sold 4,000 shares at an average price of $515.63 on June 9, 2026, under a planned sale. Cynthia Tregillis, Chief Legal Officer & Corp Sec, executed planned sales of 432 shares at $545.60 on June 5, 2026, and 699 shares at $594.11 on June 3, 2026. She also made a small purchase of 6 shares on June 3, 2026, not under a planned transaction. Additionally, Vidyadhara Gubbi, Chief of Global Operations, sold 1,764 shares at $594.11 on June 3, 2026.

Analysts Set New Price Targets

Analysts have recently reaffirmed their positive outlook on Western Digital. On June 15, 2026, Morgan Stanley maintained a 'buy' rating with a target price of $650. Similarly, JP Morgan and Mizuho also kept their 'buy' ratings, targeting $650 and $685, respectively. The consensus among 23 analysts remains a 'buy', with a mean target price of $547.09.

About Western Digital Corporation

Western Digital Corporation is a leading technology company based in San Jose, California. It specializes in the development and sale of data storage devices and solutions, with a focus on hard disk drive (HDD) technology. Serving markets in the United States, Asia, Europe, the Middle East, and Africa, the company provides a wide range of products including internal and external drives, data center platforms, and network-attached storage for both home and office use. Western Digital employs around 40,000 people and is led by CEO Tiang Yew Tan.

Bottom Line

Primecap Management's decision to reduce its stake in Western Digital by 23.4% highlights a strategic shift in its portfolio. Investors often track such moves to gauge fund sentiment and potential market implications. It's important to remember that 13F filings like these provide a snapshot of past holdings and may not accurately reflect current positions.