Sandisk (NASDAQ:SNDK) Stock Price Down 6.6% After Analyst Downgrade

Sandisk Corporation (NASDAQ:SNDK) fell 6.6% during trading on Monday after Fox Advisors downgraded the stock from an overweight rating to an equal weight rating. The stock traded as low as $1,067.40 and last traded at $1,075.08. Approximately 10,291,755 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 14,773,428 shares. The stock had previously closed at $1,150.89.

A number of other brokerages have also weighed in on SNDK. Royal Bank Of Canada cut their target price on shares of Sandisk from $1,600.00 to $1,400.00 and set a “sector perform” rating on the stock in a research note on Friday. Mizuho increased their price target on shares of Sandisk from $1,875.00 to $2,050.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 6th. Evercore restated an “outperform” rating and issued a $3,100.00 price objective (up from $1,400.00) on shares of Sandisk in a report on Thursday, August 13th. Rosenblatt Securities restated a “buy” rating and issued a $2,400.00 price objective on shares of Sandisk in a report on Friday. Finally, Wells Fargo & Company cut 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 report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $2,056.23.

Insider Buying and Selling

In related 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 transaction of $53,272,840.61. Following the completion of the transaction, the chief executive officer owned 382,865 shares of the company’s stock, valued at $602,709,911.65. This trade represents a 8.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 4,712 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were 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 directly owned 44,134 shares of the company’s stock, valued at approximately $67,991,957.72. This trade represents a 9.65% 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 quarter, insiders have sold 77,299 shares of company stock worth $120,461,826. 0.29% of the stock is currently owned by corporate insiders.

Sandisk News Summary

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Long-term industry fundamentals remain supportive. SK hynix reported record third-quarter revenue and said memory demand is expected to exceed supply through 2030, while multiyear AI-related contracts could support NAND demand, pricing and visibility for Sandisk. SK hynix Says Memory Demand Beats Supply Through 2030
• Positive Sentiment: Sandisk’s operating results remain a key bullish argument: the company recently exceeded earnings expectations, posted approximately $11.0 billion in quarterly revenue, and has recorded six consecutive earnings beats. Analysts cited continued AI-led growth and stronger projected earnings as potential support for the stock. Prediction: This Will Be Sandisk’s Stock Price After 1 Year
• Neutral Sentiment: The planned 8-for-1 stock split is scheduled to take effect before trading begins November 20. The split will change the per-share price and share count but not Sandisk’s underlying valuation or business fundamentals. Should You Buy Sandisk Stock at About 5 Times Its Guided Earnings?
• Negative Sentiment: A broad memory-stock selloff intensified after Kioxia issued a cautious outlook, raising concerns that the recent flash-memory price surge may fade. That has pressured Sandisk along with Micron and other chipmakers, even after Sandisk’s earnings beat. Micron Falls 4% as Kioxia’s Cautious Outlook Hits Memory Stocks
• Negative Sentiment: Fox Advisors downgraded Sandisk from “overweight” to “equal weight,” while RBC and Susquehanna reduced their price targets. The actions reinforce investor concerns about valuation, cyclical memory pricing and whether AI demand can offset a potential supply-driven slowdown. Fox Advisors Sandisk Rating

Hedge Funds Weigh In On Sandisk

Large investors have recently modified their holdings of the stock. BlackRock Inc. bought a new stake in Sandisk during the 2nd quarter valued at about $23,408,732,000. Situational Awareness LP grew its holdings in shares of 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 buying an additional 743,325 shares during the last quarter. Wellington Management Group LLP increased its position in shares of Sandisk by 71.2% during the second quarter. Wellington Management Group LLP now owns 1,066,886 shares of the data storage provider’s stock valued at $2,425,811,000 after acquiring an additional 443,714 shares in the last quarter. Amundi increased its position in shares of Sandisk by 135.5% during the first quarter. Amundi now owns 872,632 shares of the data storage provider’s stock valued at $554,418,000 after acquiring an additional 502,166 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its holdings in Sandisk by 33.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 828,900 shares of the data storage provider’s stock worth $1,442,195,000 after acquiring an additional 207,051 shares during the last quarter.

Sandisk Trading Down 6.6%

The company has a market capitalization of $155.38 billion, a PE ratio of 8.62, a price-to-earnings-growth ratio of 0.11 and a beta of 5.66. The business’s fifty day moving average is $1,557.91 and its two-hundred day moving average is $1,250.84.

Sandisk shares are scheduled to split on Friday, November 20th. The 8-1 split was announced on Thursday, October 29th. The newly created shares will be distributed to shareholders after the closing bell on Thursday, November 19th.

Sandisk (NASDAQ:SNDK) last announced its quarterly earnings results on Thursday, October 29th. The data storage provider reported $49.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $46.19 by $3.32. Sandisk had a return on equity of 125.70% and a net margin of 67.04%. The firm had revenue of $11.03 billion for the quarter. During the same period in the previous year, the company earned $1.22 earnings per share. The company’s revenue for the quarter was up 23.0% compared to the same quarter last year. As a group, equities research analysts anticipate that Sandisk Corporation will post 210.92 EPS for the current year.

Sandisk declared that its board has initiated a stock buyback plan on Wednesday, August 5th that authorizes the company to buy back $14 billion in outstanding shares. This buyback authorization authorizes the data storage provider to purchase up to 6.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

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.