Sandisk (NASDAQ:SNDK) Shares Down 3.7% – Should You Sell?

Shares of Sandisk Corporation (NASDAQ:SNDK) were down 3.7% during mid-day trading on Friday . The company traded as low as $1,184.37 and last traded at $1,212.21. 13,686,093 shares traded hands during trading, a decline of 17% from the average session volume of 16,533,930 shares. The stock had previously closed at $1,258.58.

Key Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk reported adjusted EPS of $39.25 and revenue of approximately $8.97 billion, beating consensus estimates. Revenue increased 371.6% year over year, driven by stronger NAND pricing, higher volumes and a 437% surge in data-center revenue. SNDK Q4 Earnings Beat Estimates
• Positive Sentiment: The company authorized a $14 billion share-repurchase program, potentially retiring up to 6.6% of outstanding shares. The buyback signals management’s confidence in the business and could support per-share earnings. SanDisk to Buy Back $14 Billion in Shares
• Positive Sentiment: Bullish analysts argue that AI-driven storage demand, high-bandwidth flash products and long-term customer agreements could make SanDisk less cyclical. Contracts reportedly include roughly $93.9 billion in minimum revenue commitments, with some agreements backed by financial guarantees. SanDisk Upgrade
• Neutral Sentiment: Analyst opinion is divided. Some firms upgraded SanDisk and see substantial upside from AI infrastructure, while Jefferies reduced its price target to $1,750 from $3,000 because of NAND pricing and margin concerns, though it retained a Buy rating. Jefferies Cuts SanDisk Price Target
• Negative Sentiment: Fiscal first-quarter revenue guidance of $10.3 billion to $10.8 billion was slightly below some Wall Street estimates. Investors interpreted the outlook as evidence that growth and pricing may be moderating, despite the quarterly beat. Why SanDisk Stock Is Falling
• Negative Sentiment: Investors are also questioning whether current margins can persist as SanDisk’s new business model gives up some near-term margin for longer-term volume, pricing discipline and visibility. The stock’s sharp prior advance has left little room for execution mistakes, while NAND oversupply or slower AI spending remains a major risk.

Analysts Set New Price Targets

A number of equities analysts recently commented on SNDK shares. Weiss Ratings cut Sandisk from a “buy (b-)” rating to a “hold (c+)” rating in a report on Tuesday, July 21st. Cantor Fitzgerald boosted their price target on Sandisk from $1,800.00 to $2,900.00 and gave the company an “overweight” rating in a report on Monday, June 8th. Wedbush upped their price target on Sandisk from $1,200.00 to $2,000.00 and gave the stock an “outperform” rating in a research report on Thursday, July 9th. Bank of America raised their price objective on Sandisk from $2,100.00 to $2,500.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Finally, Royal Bank Of Canada lifted their price objective on Sandisk from $1,000.00 to $1,300.00 and gave the company a “sector perform” rating in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $1,853.14.

Sandisk Trading Down 3.7%

The business’s 50 day moving average is $1,699.98 and its two-hundred day moving average is $1,148.38. The company has a market cap of $179.52 billion, a PE ratio of 16.63 and a beta of 5.20.

Sandisk (NASDAQ:SNDK) last issued its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share for the quarter, topping the consensus estimate 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 period in the prior year, the company posted $0.29 EPS. The company’s quarterly revenue 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 predict that Sandisk Corporation will post 187.19 EPS for the current fiscal year.

Sandisk declared that its Board of Directors has approved a stock buyback plan on Wednesday, August 5th that allows the company to repurchase $14.00 billion in outstanding shares. This repurchase authorization allows the data storage provider to purchase up to 6.6% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at Sandisk

In related news, EVP Alper Ilkbahar sold 2,000 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $1,756.58, for a total transaction of $3,513,160.00. Following the completion of the sale, the executive vice president owned 52,677 shares in the company, valued at approximately $92,531,364.66. This trade represents a 3.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Bernard Shek sold 600 shares of Sandisk stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $1,162.16, for a total value of $697,296.00. Following the sale, the insider directly owned 30,915 shares in the company, valued at $35,928,176.40. This trade represents a 1.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 6,246 shares of company stock valued at $9,993,292 over the last 90 days. Company insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Sandisk

A number of institutional investors have recently added to or reduced their stakes in SNDK. Osaic Holdings Inc. purchased a new position in shares of Sandisk in the second quarter worth $317,000. Merit Financial Group LLC purchased a new position in Sandisk during the third quarter valued at $408,000. Dimensional Fund Advisors LP bought a new stake in Sandisk in the 3rd quarter valued at $100,080,000. First Trust Advisors LP bought a new stake in Sandisk in the 3rd quarter valued at $9,788,000. Finally, Blair William & Co. IL purchased a new stake in Sandisk in the 3rd quarter worth $591,000.

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.