Sandisk (NASDAQ:SNDK) Trading 6.2% Higher – Still a Buy?

Sandisk Corporation (NASDAQ:SNDK) traded up 6.2% during mid-day trading on Thursday . The company traded as high as $1,625.36 and last traded at $1,614.39. 8,386,397 shares were traded during trading, a decline of 47% from the average daily volume of 15,826,856 shares. The stock had previously closed at $1,519.97.

Key Headlines Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk’s planned addition to the S&P 100 is providing a potential demand catalyst, as index-tracking funds may need to purchase the stock and the inclusion could increase institutional visibility. Why is SanDisk stock gaining 8% today?
• Positive Sentiment: The rally also reflects powerful operating momentum. SanDisk recently reported quarterly earnings of $39.25 per share versus the $33.28 consensus estimate, while revenue surged 371.6% year over year to approximately $8.97 billion. Management guided to first-quarter fiscal 2027 EPS of $44 to $46. SanDisk Stock Surges on Explosive Q4 Earnings and Massive Buyback
• Positive Sentiment: A newly authorized $14 billion share-repurchase program, representing as much as 6.6% of shares outstanding, is reinforcing the bullish outlook by potentially supporting earnings per share and signaling management’s confidence in the stock’s value. SanDisk Unveiled a $14 Billion Buyback
• Positive Sentiment: Investors continue to favor SanDisk as an AI-storage beneficiary. Data-center demand, tight memory supply, and expectations for sustained NAND pricing are supporting optimism about future margins and earnings. The Memory Shortage Is Not Over
• Neutral Sentiment: SanDisk is outperforming other storage and memory stocks as investor interest concentrates on its AI exposure, although part of the move reflects a broader rebound in semiconductor sentiment and improved technology-market conditions. SanDisk Jumps as Storage Bid Concentrates in One Name
• Negative Sentiment: China’s ChangXin Memory Technologies is preparing to enter the NAND market, creating a longer-term competitive threat that could pressure pricing, market share, and margins for SanDisk and other memory suppliers. CXMT Enters the NAND Memory Market
• Negative Sentiment: CEO David Goeckeler and CFO Luis Felipe Visoso recently sold shares under pre-arranged Rule 10b5-1 plans. The sales are not necessarily bearish, but they may add caution after the stock’s substantial advance and could encourage profit-taking.

Analyst Ratings Changes

A number of research firms have weighed in on SNDK. Argus raised shares of Sandisk from a “hold” rating to a “buy” rating in a report on Monday, August 10th. Mizuho cut their price target on Sandisk from $1,900.00 to $1,875.00 and set an “outperform” rating for the company in a research note on Tuesday, August 25th. Morgan Stanley upped their price target on Sandisk from $1,100.00 to $1,750.00 and gave the stock an “overweight” rating in a report on Wednesday, June 3rd. Citigroup dropped their price objective on Sandisk from $2,500.00 to $2,100.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $2,200.00 target price on shares of Sandisk in a research report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,998.14.

Sandisk Price Performance

The stock’s fifty day moving average price is $1,500.67 and its 200-day moving average price is $1,356.90. The firm has a market cap of $262.36 billion, a PE ratio of 24.58, a price-to-earnings-growth ratio of 0.16 and a beta of 5.17.

Sandisk (NASDAQ:SNDK) last released its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, beating analysts’ consensus estimates of $33.28 by $5.97. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. The company had revenue of $8.96 billion during the quarter. During the same quarter in the previous year, the company posted $0.29 EPS. The firm’s revenue was up 371.6% on a year-over-year basis. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, sell-side analysts anticipate that Sandisk Corporation will post 208.92 earnings per share for the current fiscal year.

Sandisk announced that its Board of Directors has initiated a share buyback plan on Wednesday, August 5th that permits the company to repurchase $14.00 billion in shares. This repurchase authorization permits the data storage provider to buy up to 6.6% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Insider Activity

In other news, EVP Alper Ilkbahar sold 4,712 shares of the company’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $1,540.58, for a total value of $7,259,212.96. Following the transaction, the executive vice president owned 44,134 shares of the company’s stock, valued at $67,991,957.72. This represents a 9.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Luis Visoso sold 1,000 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $1,568.83, for a total transaction of $1,568,830.00. Following the completion of the transaction, the chief financial officer directly owned 130,976 shares in the company, valued at $205,479,078.08. The trade was a 0.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 44,058 shares of company stock valued at $68,098,118 over the last three months. 0.21% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sandisk

Several institutional investors and hedge funds have recently modified their holdings of the company. SkyView Investment Advisors LLC purchased a new stake in Sandisk during the 2nd quarter worth approximately $455,000. Bouchey Financial Group Ltd. acquired a new stake in Sandisk in the 2nd quarter valued at about $296,000. Capstone Financial Advisors Inc. purchased a new position in shares of Sandisk in the 2nd quarter valued at about $398,000. IPG Investment Advisors LLC acquired a new position in shares of Sandisk during the second quarter worth about $2,776,000. Finally, MCF Advisors LLC increased its stake in shares of Sandisk by 1,086.8% during the second quarter. MCF Advisors LLC now owns 451 shares of the data storage provider’s stock worth $1,025,000 after buying an additional 413 shares during the period.

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.