5 Stocks to Buy According to David Fear’s Thunderbird Partners

3. Western Digital Corporation (NASDAQ:WDC)

Thunderbird Partners’ Stake Value: $100,142,000

Percentage of Thunderbird Partners’ 13F Portfolio: 12%

Number of Hedge Fund Holders: 41

Western Digital Corporation (NASDAQ:WDC) is a California-based manufacturer of computer hard disk drives, storage devices, data center systems, and cloud storage services. Thunderbird Partners owns 1.77 million shares of Western Digital Corporation (NASDAQ:WDC) as of the third quarter of 2021, worth $100.1 million, representing 12% of the fund’s Q3 13F securities. 

Among the hedge funds tracked by Insider Monkey, Andrew Wellington and Jeff Keswin’s Lyrical Asset Management is the largest stakeholder of Western Digital Corporation (NASDAQ:WDC) in the third quarter, with 4.23 million shares worth $239.1 million. Overall, 41 hedge funds were bullish on Western Digital Corporation (NASDAQ:WDC) in Q3 2021, down from 57 funds in the preceding quarter. 

Publishing its Q3 results on October 28, Western Digital Corporation (NASDAQ:WDC) posted an EPS of $2.49, exceeding estimates by $0.05. The $5.05 billion revenue missed estimates by $7.48 million. 

Evercore ISI analyst C.J. Muse raised the price target on Western Digital Corporation (NASDAQ:WDC) to $75 from $65 to reflect 7.2 times his calendar 2023 EPS estimate. He kept an Outperform rating on the shares on December 13, which he contends are “structurally under-valued”.

Here is what ClearBridge Investments has to say about Western Digital Corporation (NASDAQ:WDC) in its Q1 2021 investor letter:

“Our high active share approach made the most difference in IT, where the portfolio’s holdings gained 4.5% compared to a loss for the benchmark. Results were led by our more cyclical positions in digital storage provider Western Digital.”