Sandisk (NASDAQ:SNDK) Stock Price Down 5.3% – Should You Sell?

Shares of Sandisk Corporation (NASDAQ:SNDK) dropped 5.3% during trading on Wednesday. The company traded as low as $1,402.02 and last traded at $1,403.34. Approximately 7,131,299 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 15,127,384 shares. The stock had previously closed at $1,482.33.

More Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk entered a data-storage partnership with Meta Platforms to support Meta’s VR Glasses, potentially creating a new demand channel for its storage products. SanDisk Stock Drops Despite Meta Partnership
• Positive Sentiment: Analysts and investment commentators continue to identify SNDK as a buy-the-dip opportunity, citing strong AI-related memory demand, long-term industry growth and potentially attractive forward valuation. One bullish forecast places the stock at $3,000 over the next two years. AI Memory Chip Selloff Looks Overblown
• Positive Sentiment: S&P Global upgraded SanDisk’s credit rating to BBB from BB+, reflecting stronger cash flows and rising AI-driven demand. The company’s contractual commitments and robust NAND pricing are also cited as support for its cash-generation outlook. SanDisk Credit Rating Upgrade
• Neutral Sentiment: Hotter-than-expected U.S. inflation has pressured technology valuations by increasing concerns that interest rates could remain elevated. A mixed report from chip-equipment maker ASML also failed to provide a broad boost to memory shares. Why Memory Stocks Are Falling
• Negative Sentiment: Chinese memory manufacturer CXMT’s advances and plans to target high-end server memory have intensified fears that future competition could pressure SanDisk’s pricing, margins and market share. The concern has triggered a broader selloff across memory stocks. CXMT Targets Server Memory
• Negative Sentiment: Investors are also reducing exposure to AI-related semiconductor stocks amid worries about AI funding, sector valuations and whether elevated memory earnings can persist through the cycle. Chip Stocks Face AI Funding and China Concerns

Wall Street Analyst Weigh In

Several analysts have recently weighed in on the company. Sanford C. Bernstein restated an “outperform” rating and set a $3,000.00 target price (up from $1,700.00) on shares of Sandisk in a research note on Thursday, August 6th. The Goldman Sachs Group reiterated a “buy” rating and issued a $2,200.00 price target (up from $1,200.00) on shares of Sandisk in a research note on Thursday, August 13th. Royal Bank Of Canada increased their price target on Sandisk from $1,300.00 to $1,600.00 and gave the company a “sector perform” rating in a report on Friday, August 14th. Bank of America raised their price objective on Sandisk from $2,100.00 to $2,500.00 and gave the company a “buy” rating in a research note on Wednesday, July 1st. Finally, Wells Fargo & Company upped their target price on Sandisk from $1,400.00 to $1,550.00 and gave the company an “equal weight” rating in a research report on Thursday, August 13th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $2,120.65.

Sandisk Price Performance

The company has a fifty day moving average of $1,598.08 and a two-hundred day moving average of $1,487.22. The stock has a market capitalization of $202.82 billion, a P/E ratio of 19.25, a price-to-earnings-growth ratio of 0.15 and a beta of 5.23.

Sandisk (NASDAQ:SNDK) last announced its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $33.28 by $5.97. Sandisk had a return on equity of 87.84% and a net margin of 56.47%. The firm had revenue of $8.96 billion for the quarter. During the same quarter last year, the business earned $0.29 earnings per share. The business’s revenue for the quarter was up 371.6% compared to the same quarter last year. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, equities research analysts predict that Sandisk Corporation will post 208.94 EPS for the current fiscal year.

Sandisk declared that its Board of Directors has approved a share buyback 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 reacquire up to 6.6% of its shares through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Bernard Shek sold 600 shares of the business’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $1,734.94, for a total transaction of $1,040,964.00. Following the completion of the transaction, the insider owned 25,588 shares of the company’s stock, valued at approximately $44,393,644.72. The trade was a 2.29% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Goeckeler sold 33,841 shares of the business’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $1,574.21, for a total transaction of $53,272,840.61. Following the transaction, the chief executive officer directly owned 382,865 shares of the company’s stock, valued at $602,709,911.65. The trade was a 8.12% decrease in their ownership of the stock. 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 sold 77,899 shares of company stock valued at $121,159,122 over the last three months. Corporate insiders own 0.29% of the company’s stock.

Institutional Trading of Sandisk

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Valley Wealth Managers Inc. bought a new stake in shares of Sandisk in the 1st quarter worth approximately $25,000. Atomic Invest LLC acquired a new position in shares of Sandisk in the 2nd quarter valued at $25,000. IMG Wealth Management Inc. bought a new position in shares of Sandisk during the 1st quarter worth about $29,000. Dunhill Financial LLC bought a new position in shares of Sandisk during the 2nd quarter worth about $30,000. Finally, Mowery & Schoenfeld Wealth Management LLC acquired a new stake in shares of Sandisk during the 2nd quarter valued at about $32,000.

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.