Sandisk (NASDAQ:SNDK) Trading 5.8% Higher – Time to Buy?

Sandisk Corporation (NASDAQ:SNDK)’s share price shot up 5.8% during trading on Wednesday . The company traded as high as $1,389.28 and last traded at $1,344.29. 11,887,033 shares changed hands during trading, a decline of 28% from the average session volume of 16,418,252 shares. The stock had previously closed at $1,271.05.

Key Stories Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Analyst upgrades support the rebound. Argus upgraded Sandisk to Buy, while other coverage points to a bullish consensus and price targets above current trading levels. These upgrades suggest analysts view the recent selloff as an attractive entry point. Argus Upgrades Sandisk to Buy
• Positive Sentiment: AI demand and constrained supply are improving the outlook. Sandisk’s earnings call highlighted rising demand for storage in AI data centers, multiyear customer agreements, and disciplined supply growth. A persistent NAND shortage could support pricing and margins into fiscal 2027. Sandisk Q4 Earnings Call Centers on AI Demand and Long-Term Deals
• Positive Sentiment: Cash generation and buybacks may increase shareholder returns. Coverage emphasizes rapidly growing data-center revenue, stronger cash flow, and an aggressive share-repurchase program. Management’s willingness to buy back stock is being interpreted as evidence that it considers the shares undervalued. Sandisk Buyback and Data Center Growth
• Neutral Sentiment: Recent earnings remain a key fundamental support. Sandisk exceeded quarterly EPS expectations and reported exceptionally strong year-over-year revenue growth, with fiscal 2027 guidance providing additional visibility. However, much of the good news may already be reflected in the valuation. Sandisk Stock: Why I’m Buying on Fear
• Negative Sentiment: Volatility and cyclical risks remain significant. Sandisk has fallen substantially from its June peak, and investors remain concerned that memory pricing and AI-related expectations could reverse if supply improves or demand slows. The stock’s high beta makes further sharp swings possible. Sandisk Stock Rebound Outlook

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on SNDK. Royal Bank Of Canada lifted their price target on shares of Sandisk from $1,000.00 to $1,300.00 and gave the stock a “sector perform” rating in a research note on Thursday, August 6th. Melius Research set a $2,350.00 price objective on shares of Sandisk in a report on Monday, May 18th. Mizuho lifted their price objective on shares of Sandisk from $1,825.00 to $2,200.00 and gave the stock an “outperform” rating in a research report on Monday, June 8th. Jefferies Financial Group reiterated a “buy” rating on shares of Sandisk in a research note on Thursday, August 6th. Finally, Cantor Fitzgerald reissued an “overweight” rating on shares of Sandisk in a report on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Sandisk has an average rating of “Moderate Buy” and an average price target of $1,853.14.

Sandisk Price Performance

The company’s 50 day simple moving average is $1,680.61 and its 200 day simple moving average is $1,164.50. The company has a market capitalization of $199.08 billion, a PE ratio of 18.44, a price-to-earnings-growth ratio of 0.14 and a beta of 5.20.

Sandisk (NASDAQ:SNDK) last issued its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share for the quarter, topping the consensus estimate of $33.28 by $5.97. The business had revenue of $8.96 billion during the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. The firm’s quarterly revenue was up 371.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, equities analysts forecast that Sandisk Corporation will post 187.19 EPS for the current year.

Sandisk announced that its Board of Directors has authorized a share repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $14.00 billion in shares. This repurchase authorization authorizes the data storage provider to purchase up to 6.6% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Sandisk

In other news, EVP Alper Ilkbahar sold 2,000 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the completion of the sale, the executive vice president directly owned 52,677 shares of the company’s stock, valued at approximately $92,531,364.66. The trade was a 3.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Bernard Shek sold 600 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $1,162.16, for a total value of $697,296.00. Following the completion of the sale, the insider directly owned 30,915 shares of the company’s stock, valued at approximately $35,928,176.40. This trade represents a 1.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,800 shares of company stock valued at $6,504,856 in the last 90 days. 0.21% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sandisk

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SNDK. Allworth Financial LP lifted its holdings in Sandisk by 84.2% in the 4th quarter. Allworth Financial LP now owns 4,521 shares of the data storage provider’s stock valued at $1,073,000 after purchasing an additional 2,067 shares in the last quarter. Handelsbanken Fonder AB grew its holdings in shares of Sandisk by 35.1% during the second quarter. Handelsbanken Fonder AB now owns 57,564 shares of the data storage provider’s stock worth $130,885,000 after buying an additional 14,964 shares in the last quarter. Tredje AP fonden acquired a new position in shares of Sandisk in the fourth quarter valued at approximately $7,821,000. ProShare Advisors LLC raised its position in shares of Sandisk by 1,301.5% in the fourth quarter. ProShare Advisors LLC now owns 33,637 shares of the data storage provider’s stock valued at $7,985,000 after buying an additional 31,237 shares during the last quarter. Finally, FourThought Financial Partners LLC purchased a new position in shares of Sandisk during the fourth quarter valued at approximately $422,000.

Sandisk Company Profile

SanDisk Corporation offers flash storage solutions. The Company designs, develops and manufactures data storage solutions in a range of form factors using flash memory, controller, firmware and software technologies. The Company operates through flash memory storage products segment. Its solutions include a range of solid state drives (SSD), embedded products, removable cards, universal serial bus (USB), drives, wireless media drives, digital media players, and wafers and components. It offers SSDs for client computing applications, which encompass desktop computers, notebook computers, tablets and other computing devices.