Sandisk (NASDAQ:SNDK) Shares Down 6.8% – What’s Next?

Sandisk Corporation (NASDAQ:SNDK) shares traded down 6.8% on Friday. The stock traded as low as $1,296.19 and last traded at $1,299.30. Approximately 8,795,799 shares changed hands during trading, a decline of 42% from the average session volume of 15,088,230 shares. The stock had previously closed at $1,394.83.

Key Headlines Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk’s long-term growth case remains supported by strong data-center demand. One analysis argues that the company’s revenue growth, earnings power and $15.5 billion buyback authorization could support further earnings-per-share accretion if cash generation remains robust. Sandisk: The Earnings Boom Is Only Half The Story
• Positive Sentiment: Sandisk reportedly has at least $93.9 billion of expected revenue secured through multiyear contracts, including financial protections if customers fail to meet commitments. This provides meaningful demand visibility despite near-term market volatility. SanDisk Stock Is Falling on AI Fears. Its $93.9 Billion Contract Book Tells Another Story
• Positive Sentiment: Bullish analysts say continued AI infrastructure spending and data-center demand could drive substantial additional upside, with one projection placing the shares at $4,128 over the next year. Sandisk Stock Could Be Worth $4,128 in the Next Year
• Neutral Sentiment: Sandisk was upgraded by Zacks Research from “hold” to “strong buy,” although the upgrade has not offset broader sector selling.
• Negative Sentiment: Memory-chip stocks, including Sandisk, Micron and SK Hynix, are continuing a multiday selloff. Investors are concerned about Chinese competitors’ server-memory plans, cyclical oversupply and the durability of recent margin expansion. Memory Stocks Extend Selloff on China Competition Fears
• Negative Sentiment: Cathie Wood warned that memory-chip cycles can be “vicious” and indicated that her ARK strategy is moving away from the group, raising concerns that Sandisk’s rapid gains and expanding margins may not be sustainable. Cathie Wood Says the Memory Chip Trend Is Up but the Cycles Are Vicious
• Negative Sentiment: Higher Treasury yields and the possibility of an October Federal Reserve rate hike are weighing on growth and AI-related equities, adding to pressure on Sandisk. Nasdaq 100 Slides As Micron, SanDisk, CoreWeave Sink

Analysts Set New Price Targets

A number of analysts have recently commented on SNDK shares. Wells Fargo & Company boosted their price objective on shares of Sandisk from $1,400.00 to $1,550.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 13th. Evercore restated an “outperform” rating and set a $3,100.00 target price (up from $1,400.00) on shares of Sandisk in a report on Thursday, August 13th. Royal Bank Of Canada increased their target price on shares of Sandisk from $1,300.00 to $1,600.00 and gave the stock a “sector perform” rating in a report on Friday, August 14th. JPMorgan Chase & Co. assumed coverage on shares of Sandisk in a research report on Friday, August 14th. They issued an “overweight” rating and a $2,250.00 target price for the company. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $1,400.00 target price (up from $1,000.00) on shares of Sandisk in a research report on Thursday, August 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $2,120.65.

Sandisk Price Performance

The firm has a market cap of $187.79 billion, a price-to-earnings ratio of 17.82, a P/E/G ratio of 0.13 and a beta of 5.23. The business has a 50-day moving average of $1,603.61 and a 200-day moving average of $1,496.95.

Sandisk (NASDAQ:SNDK) last issued its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, beating the consensus estimate of $33.28 by $5.97. The firm had revenue of $8.96 billion during the quarter. Sandisk had a return on equity of 87.84% and a net margin of 56.47%. The business’s revenue for the quarter was up 371.6% on a year-over-year basis. During the same period last year, the company posted $0.29 earnings per share. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, equities analysts anticipate that Sandisk Corporation will post 208.94 EPS for the current fiscal year.

Sandisk declared that its board has authorized a stock buyback program on Wednesday, August 5th that authorizes the company to buy back $14.00 billion in outstanding shares. This buyback authorization authorizes the data storage provider to repurchase up to 6.6% of its stock through open market purchases. Share buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other news, CEO David Goeckeler sold 33,841 shares of the company’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 sale, the chief executive officer owned 382,865 shares in the company, valued at $602,709,911.65. This represents a 8.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bernard Shek sold 2,308 shares of the 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 completion of the sale, the insider directly owned 25,305 shares of the company’s stock, valued at approximately $44,722,285.65. The trade was 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 77,899 shares of company stock worth $121,159,122 over the last 90 days. Company insiders own 0.29% of the company’s stock.

Institutional Trading of Sandisk

Several institutional investors and hedge funds have recently added to or reduced their stakes in SNDK. BlackRock Inc. acquired a new stake in Sandisk in the second quarter valued at $23,408,732,000. Situational Awareness LP increased its stake in shares of Sandisk by 42.4% during the 2nd quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider’s stock worth $5,673,739,000 after purchasing an additional 743,325 shares during the last quarter. Wellington Management Group LLP increased its stake in shares of Sandisk by 71.2% during the 2nd 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 last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Sandisk by 57.4% during the 2nd 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 during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in shares of Sandisk during the 2nd quarter worth about $1,621,353,000.

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.