Sandisk (NASDAQ:SNDK) Trading 2% Higher – Should You Buy?

Sandisk Corporation (NASDAQ:SNDK) was up 2% on Thursday . The company traded as high as $1,631.40 and last traded at $1,600.62. Approximately 11,015,195 shares changed hands during trading, a decline of 33% from the average daily volume of 16,481,336 shares. The stock had previously closed at $1,568.87.

Key Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Analysts and market commentators remain constructive on Sandisk’s AI opportunity. The core thesis is that the rapid growth of AI-generated data will require substantially more NAND storage, potentially supporting demand, pricing and earnings. Sandisk Thesis: Every Byte AI Creates Needs A Home
• Positive Sentiment: Coverage highlighted Sandisk’s goal of achieving margins near 80% through stronger AI demand and a shift toward contract-based sales, which could make its historically cyclical NAND business more predictable. From Commodity to Cash Machine? Sandisk Targets 80% Margins in AI Storage Boom
• Positive Sentiment: Brian Mulberry cited Sandisk’s upside earnings potential as a reason to favor the stock despite weakness across memory companies, suggesting traders view the pullback as an opportunity if AI-related demand remains strong. Addressing SNDK Earnings Potential Amid AI Memory Volatility
• Neutral Sentiment: Sandisk’s recent earnings strength supports the bullish case: revenue surged year over year and earnings exceeded consensus estimates. However, investors are increasingly focused on whether those results can be sustained rather than being driven mainly by higher memory prices.
• Neutral Sentiment: Technical coverage identified a potential rebound zone in the mid-$1,600s, with resistance near $1,696.50 and support around $1,485. These levels may contribute to continued short-term volatility. What’s Going On With Sandisk Stock Thursday?
• Negative Sentiment: Memory stocks faced pressure after a broader Asian technology selloff, while concerns that roughly two-thirds of Sandisk’s record revenue growth came from pricing raised questions about demand durability and the risk of a cyclical reversal. Why Are Micron and SanDisk Stocks Falling Today
• Negative Sentiment: Investor sentiment is also being tempered by Sandisk’s extreme prior appreciation and reports that hedge funds disagree on the stock’s outlook. David Tepper’s Appaloosa exited its entire position during the quarter in which Sandisk reached its 52-week high, reinforcing profit-taking concerns. David Tepper Sold His Entire Sandisk Stake

Analysts Set New Price Targets

SNDK has been the topic of several analyst reports. Jefferies Financial Group reiterated a “buy” rating on shares of Sandisk in a research note on Thursday, August 6th. The Goldman Sachs Group reissued a “buy” rating and set a $2,200.00 price target on shares of Sandisk in a research report on Thursday, August 13th. Sanford C. Bernstein restated an “outperform” rating on shares of Sandisk in a report on Thursday, August 6th. Wedbush reaffirmed an “outperform” rating and issued a $2,000.00 price objective on shares of Sandisk in a research report on Friday, August 14th. Finally, New Street Research set a $3,000.00 price objective on shares of Sandisk in a research note on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Buy” and an average price target of $1,999.27.

Sandisk Price Performance

The firm has a market cap of $234.36 billion, a price-to-earnings ratio of 21.96, a P/E/G ratio of 0.16 and a beta of 5.20. The firm has a fifty day simple moving average of $1,668.86 and a two-hundred day simple moving average of $1,210.26.

Sandisk (NASDAQ:SNDK) last posted its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $33.28 by $5.97. The firm had revenue of $8.96 billion for the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. The business’s revenue was up 371.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Equities analysts anticipate that Sandisk Corporation will post 208.92 earnings per share for the current fiscal year.

Sandisk declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 5th that authorizes the company to buyback $14.00 billion in outstanding shares. This buyback authorization authorizes the data storage provider to buy up to 6.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Sandisk news, EVP Alper Ilkbahar sold 2,000 shares of the firm’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the completion of the transaction, the executive vice president owned 52,677 shares of the company’s stock, 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 filing with the SEC, which is accessible through the SEC website. Also, insider Bernard Shek sold 600 shares of Sandisk stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total transaction of $697,296.00. Following the sale, the insider owned 30,915 shares of the company’s stock, valued at $35,928,176.40. The trade was a 1.90% 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. In the last ninety days, insiders sold 3,800 shares of company stock valued at $6,504,856. Corporate insiders own 0.21% of the company’s stock.

Institutional Trading of Sandisk

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of Sandisk during the second quarter worth about $23,408,732,000. State Street Corp acquired a new position in Sandisk in the 3rd quarter worth approximately $491,053,000. Arrowstreet Capital Limited Partnership acquired a new position in Sandisk in the 3rd quarter worth approximately $297,293,000. Norges Bank purchased a new position in Sandisk during the 4th quarter worth approximately $518,889,000. Finally, Bank of America Corp DE purchased a new position in Sandisk during the 3rd quarter worth approximately $190,425,000.

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.