Sandisk (NASDAQ:SNDK) Shares Up 3.6% – Still a Buy?

Shares of Sandisk Corporation (NASDAQ:SNDK) were up 3.6% on Friday. The stock traded as high as $912.09 and last traded at $835.06. 17,512,449 shares changed hands during mid-day trading, an increase of 18% from the average daily volume of 14,814,455 shares. The stock had previously closed at $806.43.

Key Headlines Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Memory and storage stocks rallied after Thursday’s steep decline, helping lift Sandisk as investors returned to beaten-down AI-linked chip shares. SanDisk Surges Following Post-Midterm Crash
• Positive Sentiment: Recent results and guidance remain strong: Sandisk beat fiscal Q1 earnings expectations, and management forecasts fiscal Q2 adjusted EPS of $55–$57 per share on a pre-split basis. Analysts also point to strong enterprise SSD demand from AI data centers and a substantial pipeline of customer commitments. Why Sandisk Stock Bounced Back Friday
• Positive Sentiment: Some analysts see the steep correction as an opportunity, arguing that Sandisk’s valuation is low relative to its growth prospects and that long-term supply agreements support demand visibility. Sandisk: 3.5x P/E And Robotics Potential Changed My Mind
• Neutral Sentiment: The announced 8-for-1 stock split is approaching and may make shares more accessible to some investors, but it does not change the company’s underlying value or fundamentals. Sandisk Is Splitting Its Stock 8-for-1
• Negative Sentiment: Risks remain after the recent sell-off: investors fear potential delays to data-center spending and question whether unusually high NAND prices and margins are sustainable. One bearish view highlights slowing NAND price increases, weaker consumer demand, and the possibility that second-half results fall short of expectations. Sandisk: Cheap, But Cheap For A Reason

Analysts Set New Price Targets

A number of research analysts have recently issued reports on SNDK shares. Wells Fargo & Company dropped their price objective on Sandisk from $1,550.00 to $1,300.00 and set an “equal weight” rating on the stock in a research note on Friday, October 30th. Zacks Research raised Sandisk from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, October 13th. Evercore reaffirmed an “outperform” rating and set a $3,100.00 target price (up from $1,400.00) on shares of Sandisk in a research note on Thursday, August 13th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $3,000.00 target price (up from $1,700.00) on shares of Sandisk in a report on Thursday, August 6th. Finally, Mizuho boosted their price target on Sandisk from $1,875.00 to $2,050.00 and gave the company an “outperform” rating in a research note on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $2,056.23.

Sandisk Price Performance

The firm has a market capitalization of $118.82 billion, a price-to-earnings ratio of 6.69, a PEG ratio of 0.06 and a beta of 5.66. The business’s fifty day simple moving average is $1,504.43 and its 200 day simple moving average is $1,264.98.

Sandisk’s stock is going to split on the morning of Friday, November 20th. The 8-1 split was announced on Thursday, October 29th. The newly created shares will be payable to shareholders after the market closes on Thursday, November 19th.

Sandisk (NASDAQ:SNDK) last announced its quarterly earnings data 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 for the quarter. Sandisk had a net margin of 67.04% and a return on equity of 125.70%. Sandisk’s revenue for the quarter was up 23.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.22 EPS. Equities research analysts expect that Sandisk Corporation will post 226.01 earnings per share for the current fiscal year.

Sandisk declared that its board has authorized a share repurchase program on Wednesday, August 5th that permits the company to buy back $14 billion in shares. This buyback authorization permits the data storage provider to buy up to 6.6% of its stock through open market purchases. Share buyback programs are generally a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at Sandisk

In other Sandisk news, CEO David Goeckeler sold 33,841 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $1,574.21, for a total value of $53,272,840.61. Following the completion of the sale, the chief executive officer owned 382,865 shares of the company’s stock, valued at approximately $602,709,911.65. This trade represents a 8.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible 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 shares were sold at an average price of $1,767.33, for a total value of $4,078,997.64. Following the sale, the insider owned 25,305 shares of the company’s stock, valued at approximately $44,722,285.65. This represents a 8.36% 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 a total of 77,899 shares of company stock valued at $121,156,782 in the last 90 days. Corporate insiders own 0.29% of the company’s stock.

Institutional Trading of Sandisk

Several hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in Sandisk during the second quarter valued at about $23,408,732,000. Situational Awareness LP grew its stake in Sandisk by 42.4% during 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 acquiring an additional 743,325 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in Sandisk during the second quarter valued at approximately $1,621,353,000. Bank of America Corp DE bought a new stake in Sandisk during the 2nd quarter worth approximately $1,564,901,000. Finally, Assenagon Asset Management S.A. bought a new stake in Sandisk during the 2nd quarter worth approximately $1,413,917,000.

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.