Sandisk (NASDAQ:SNDK) Downgraded by Zacks Research to Hold

Sandisk (NASDAQ:SNDK) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday, Zacks reports.

Several other equities research analysts also recently issued reports on the company. Barclays upgraded Sandisk from an “equal weight” rating to an “overweight” rating and boosted their price objective for the company from $1,200.00 to $2,300.00 in a report on Tuesday, May 26th. Jefferies Financial Group reaffirmed a “buy” rating on shares of Sandisk in a research report on Thursday, August 6th. Evercore reissued an “outperform” rating on shares of Sandisk in a research report on Thursday, August 13th. UBS Group reissued an “overweight” rating and issued a $1,750.00 price objective on shares of Sandisk in a research note on Friday, August 14th. Finally, Cantor Fitzgerald restated an “overweight” rating and issued a $2,900.00 price objective on shares of Sandisk in a report on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Sandisk currently has an average rating of “Moderate Buy” and a consensus price target of $1,998.14.

Sandisk Stock Performance

Sandisk stock opened at $1,737.99 on Monday. The company has a market capitalization of $254.47 billion, a PE ratio of 23.84, a price-to-earnings-growth ratio of 0.17 and a beta of 5.17. Sandisk has a fifty-two week low of $69.57 and a fifty-two week high of $2,354.39. The firm has a 50 day moving average price of $1,526.40 and a 200 day moving average price of $1,305.86.

Sandisk (NASDAQ:SNDK) last released its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, topping analysts’ consensus estimates of $33.28 by $5.97. Sandisk had a return on equity of 87.84% and a net margin of 56.47%.The company had revenue of $8.96 billion for the quarter. During the same quarter last year, the company earned $0.29 earnings per share. The firm’s revenue for the quarter was up 371.6% on a year-over-year basis. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, equities research analysts forecast that Sandisk will post 208.92 earnings per share for the current year.

Sandisk announced that its Board of Directors has authorized a stock buyback program on Wednesday, August 5th that authorizes the company to buyback $14.00 billion in outstanding shares. This buyback authorization authorizes the data storage provider to buy up to 6.6% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, EVP Alper Ilkbahar sold 4,712 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $1,540.58, for a total value of $7,259,212.96. Following the sale, the executive vice president owned 44,134 shares of the company’s stock, valued at $67,991,957.72. This trade represents a 9.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bernard Shek sold 2,308 shares of the business’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $1,767.33, for a total transaction of $4,078,997.64. Following the transaction, the insider owned 25,305 shares of the company’s stock, valued at $44,722,285.65. This trade represents a 8.36% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 9,220 shares of company stock worth $14,829,223 over the last 90 days. Insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Sandisk

A number of institutional investors and hedge funds have recently modified their holdings of the company. Dogwood Wealth Management LLC raised its stake in Sandisk by 14.3% in the second quarter. Dogwood Wealth Management LLC now owns 48 shares of the data storage provider’s stock valued at $109,000 after buying an additional 6 shares in the last quarter. Nilsine Partners LLC boosted its position in shares of Sandisk by 3.2% during the 2nd quarter. Nilsine Partners LLC now owns 226 shares of the data storage provider’s stock worth $514,000 after acquiring an additional 7 shares in the last quarter. Insight Wealth Partners LLC increased its holdings in shares of Sandisk by 0.4% in the 2nd quarter. Insight Wealth Partners LLC now owns 1,607 shares of the data storage provider’s stock valued at $3,654,000 after acquiring an additional 7 shares during the last quarter. Cornerstone Financial Management LLC raised its holdings in Sandisk by 60.0% during the second quarter. Cornerstone Financial Management LLC now owns 24 shares of the data storage provider’s stock worth $55,000 after purchasing an additional 9 shares in the last quarter. Finally, Castle Rock Wealth Management LLC raised its stake in Sandisk by 2.4% during the 2nd quarter. Castle Rock Wealth Management LLC now owns 426 shares of the data storage provider’s stock worth $969,000 after acquiring an additional 10 shares in the last quarter.

Key Headlines Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: S&P 100 inclusion is a near-term catalyst. Sandisk will join the S&P 100 before trading opens on September 21. The addition could attract buying from index funds and increase institutional visibility after the stock’s powerful rally. SanDisk S&P 100 inclusion article
• Positive Sentiment: AI infrastructure demand is tightening the memory market. Articles point to strong demand for NAND and data-center storage, with supply constraints supporting pricing and margins across memory-chip makers. This has helped drive substantial recent gains in SNDK and peers such as Micron. Sandisk NAND article
• Positive Sentiment: Investors see improving cash generation and less exposure to spot-market volatility. One analysis estimates approximately $24 billion of fiscal 2027 free cash flow and highlights management’s intention to return excess cash to shareholders. Long-term supply agreements, reportedly totaling $93.9 billion, could make revenue more predictable than in prior NAND cycles. Sandisk free cash flow article
• Neutral Sentiment: Analyst sentiment is mixed after a more than 500% 2026 rally. Some commentators believe earnings growth and AI demand can extend the advance, while valuation models and technical indicators suggest expectations are already aggressive. Sandisk rally outlook article
• Negative Sentiment: Valuation and memory cyclicality are the main risks. Coverage warns that the rally may have moved ahead of fundamentals, while NAND pricing, customer spending and supply conditions can reverse quickly. A pullback or profit-taking would be more likely if demand expectations weaken. Zacks Sandisk rally risk article

About Sandisk

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.