Sandisk (NASDAQ:SNDK) Earns “Buy” Rating from Rosenblatt Securities

Sandisk (NASDAQ:SNDK)‘s stock had its “buy” rating reaffirmed by investment analysts at Rosenblatt Securities in a research note issued to investors on Friday, Benzinga reports. They currently have a $2,400.00 target price on the data storage provider’s stock. Rosenblatt Securities‘s price objective would indicate a potential upside of 111.52% from the company’s current price.

A number of other analysts also recently weighed in on the stock. Zacks Research raised shares of Sandisk from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 13th. The Goldman Sachs Group reissued a “buy” rating and issued a $2,200.00 price target (up from $1,200.00) on shares of Sandisk in a report on Thursday, August 13th. Sanford C. Bernstein reissued an “outperform” rating and issued a $3,000.00 price target (up from $1,700.00) on shares of Sandisk in a research report on Thursday, August 6th. JPMorgan Chase & Co. started coverage on Sandisk in a research note on Friday, August 14th. They issued an “overweight” rating and a $2,250.00 price target on the stock. Finally, Mizuho upped their target price on shares of Sandisk from $1,875.00 to $2,050.00 and gave the stock an “outperform” rating in a report on Tuesday, October 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $2,056.23.

Sandisk Trading Down 14.7%

Sandisk stock traded down $195.40 on Friday, reaching $1,134.65. 13,086,940 shares of the stock were exchanged, compared to its average volume of 14,770,029. The firm has a fifty day moving average price of $1,566.91 and a two-hundred day moving average price of $1,247.03. The stock has a market cap of $163.99 billion, a PE ratio of 15.46, a PEG ratio of 0.14 and a beta of 5.23. Sandisk has a twelve month low of $183.00 and a twelve month high of $2,354.39.

Sandisk (NASDAQ:SNDK) last announced its earnings results on Thursday, October 29th. The data storage provider reported $49.51 earnings per share for the quarter, beating the consensus estimate of $46.19 by $3.32. The firm had revenue of $11.03 billion during the quarter. Sandisk had a return on equity of 87.84% and a net margin of 56.47%. Sandisk’s revenue for the quarter was up 23.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.22 EPS. Equities analysts anticipate that Sandisk will post 210.92 EPS for the current fiscal year.

Sandisk announced that its board has approved a stock buyback plan on Wednesday, August 5th that authorizes the company to buy back $14 billion in shares. This buyback authorization authorizes the data storage provider to repurchase up to 6.6% of its shares through open market purchases. Share buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Sandisk

In related news, EVP Alper Ilkbahar sold 4,712 shares of Sandisk stock in a transaction dated 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 completion of the sale, the executive vice president directly owned 44,134 shares in the company, 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Luis Visoso sold 1,000 shares of the firm’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. This trade represents a 0.76% 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. Over the last 90 days, insiders have sold 77,899 shares of company stock worth $121,159,122. Company insiders own 0.29% of the company’s stock.

Institutional Trading of Sandisk

Institutional investors and hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in shares of Sandisk in the 2nd quarter valued at approximately $23,408,732,000. Situational Awareness LP increased its stake in Sandisk by 42.4% in the second quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider’s stock valued at $5,673,739,000 after purchasing an additional 743,325 shares in the last quarter. Wellington Management Group LLP raised its holdings in Sandisk by 71.2% in the second quarter. Wellington Management Group LLP now owns 1,066,886 shares of the data storage provider’s stock worth $2,425,811,000 after purchasing an additional 443,714 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Sandisk by 57.4% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 726,722 shares of the data storage provider’s stock worth $1,652,370,000 after purchasing an additional 264,935 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Sandisk during the second quarter worth $1,621,353,000.

Sandisk News Summary

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk reported fiscal Q1 revenue of approximately $11.03 billion and diluted EPS of $49.51, exceeding Wall Street expectations. Revenue rose 378% year over year, while GAAP net income reached $8.1 billion. Sandisk Q1 earnings beat
• Positive Sentiment: AI-related demand remains a major growth driver: data-center revenue increased 61% sequentially to $4.8 billion, and management said customers are locking in supply through the end of the decade. Long-term agreements reportedly provide substantial revenue visibility. CEO discusses customer demand
• Positive Sentiment: Management issued stronger fiscal Q2 guidance, projecting revenue of $12.2 billion to $12.6 billion and non-GAAP diluted EPS of $55 to $57. Sandisk also repurchased about $5 billion of stock during the quarter. Sandisk guidance and stock split
• Positive Sentiment: The board approved an 8-for-1 forward stock split effective November 19, which may improve share accessibility, although it does not change the company’s underlying value. Susquehanna maintained a positive rating despite trimming its price target slightly. Susquehanna price target
• Neutral Sentiment: Analysts remain divided: some view Sandisk as an attractive AI-infrastructure value play, while others argue that expectations already reflect much of the earnings improvement and that memory pricing may be approaching a peak. Analyst view on memory pricing
• Negative Sentiment: Sandisk was caught in a wider semiconductor sell-off following disappointing results from Amazon and Intel, while weakness in other memory stocks amplified sector pressure. Memory-stock sell-off
• Negative Sentiment: Investors are concerned that Sandisk’s sharply higher valuation leaves little room for execution disappointments, particularly if NAND pricing, margins or earnings growth slow. Valuation concerns
• Negative Sentiment: Growing competition from China’s ChangXin Memory Technologies adds a longer-term risk to Sandisk’s pricing power and market share, despite current supply shortages. CXMT revenue growth

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.