Sandisk (NASDAQ:SNDK) Stock Price Up 6.2% – Here’s Why

by · The Markets Daily

Sandisk Corporation (NASDAQ:SNDK – Get Free Report)’s share price shot up 6.2% during mid-day trading on Thursday . The stock traded as high as $1,625.36 and last traded at $1,614.39. 8,386,397 shares changed hands during trading, a decline of 47% from the average daily volume of 15,826,856 shares. The stock had previously closed at $1,519.97.

Key Sandisk News

Here are the key news stories impacting Sandisk this week:

  • Positive Sentiment: Analysts say the memory shortage remains unresolved, potentially supporting NAND pricing, supply discipline and additional upside for Sandisk. The company’s data-center and AI exposure is viewed as a long-term growth catalyst. The Memory Shortage Is Not Over
  • Positive Sentiment: Recent analysis argues that Sandisk’s NAND supply contracts could improve earnings visibility and support substantial margin expansion. Management’s long-term targets of roughly 80% non-GAAP gross margins and 75% operating margins reinforce the bullish earnings outlook. Sandisk Earnings Power Analysis
  • Positive Sentiment: Sandisk’s latest reported quarter showed $39.25 in earnings per share, well above the $33.28 consensus estimate, with revenue up 371.6% year over year. Its $14 billion buyback authorization may also provide support by reducing shares outstanding.
  • Neutral Sentiment: Micron, SK Hynix and Sandisk benefited from a sector-wide rebound after an earlier AI-related sell-off. Improving macro sentiment helped technology stocks recover, but the move was not tied to a new Sandisk-specific announcement. Why Memory-Chip Stocks Are Jumping
  • Neutral Sentiment: Investor interest is high after Sandisk’s extraordinary one-year gain, but commentary warns that its valuation and extreme volatility could lead to sharp moves. The leveraged SNXX ETF amplifies daily SNDK returns and can suffer from substantial decay in volatile or sideways markets. SNXX Benefits and Risks
  • Negative Sentiment: CEO David Goeckeler and CFO Luis Felipe Visoso recently sold shares worth approximately $51.7 million and $1.6 million, respectively. Both transactions were conducted under pre-arranged Rule 10b5-1 plans, making them limited signals, but the sales may still increase investor caution after the stock’s large rally. Sandisk Insider Sales
  • Negative Sentiment: Concerns about slowing frontier-AI development, profit-taking and competition from other memory suppliers remain risks. At roughly $1,609, the shares remain well below their 52-week high of $2,354 but carry a high beta of 5.17, leaving them sensitive to changes in AI spending expectations.

Wall Street Analyst Weigh In

SNDK has been the topic of a number of analyst reports. Evercore restated an “outperform” rating on shares of Sandisk in a research report on Thursday, August 13th. The Goldman Sachs Group restated a “buy” rating and set a $2,200.00 price objective on shares of Sandisk in a report on Thursday, August 13th. Bank of America upped their target price on Sandisk from $2,100.00 to $2,500.00 and gave the company a “buy” rating in a research note on Wednesday, July 1st. Argus raised Sandisk from a “hold” rating to a “buy” rating in a research note on Monday, August 10th. Finally, Wells Fargo & Company lifted their price target on Sandisk from $1,400.00 to $1,550.00 and gave the company an “equal weight” rating in a report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $1,998.14.

Read Our Latest Report on SNDK

Sandisk Stock Performance

The firm has a market capitalization of $236.39 billion, a price-to-earnings ratio of 22.15, a P/E/G ratio of 0.15 and a beta of 5.17. The business has a fifty day moving average price of $1,508.03 and a 200 day moving average price of $1,346.94.

Sandisk (NASDAQ:SNDK – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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%.Sandisk’s revenue was up 371.6% on a year-over-year basis. During the same period last year, the firm posted $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, analysts expect that Sandisk Corporation will post 208.92 earnings per share for the current year.

Sandisk announced that its board has initiated a share buyback program on Wednesday, August 5th that allows the company to buyback $14.00 billion in shares. This buyback authorization allows the data storage provider to buy up to 6.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Sandisk

In other Sandisk news, CFO Luis Visoso sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $1,568.83, for a total transaction of $1,568,830.00. Following the completion of the sale, the chief financial officer directly owned 130,976 shares in the company, valued at $205,479,078.08. The trade was a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through 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 on Thursday, September 3rd. The shares were sold at an average price of $1,540.58, for a total transaction of $7,259,212.96. Following the completion of the transaction, the executive vice president directly owned 44,134 shares in the company, valued at approximately $67,991,957.72. This represents a 9.65% 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. In the last three months, insiders sold 44,058 shares of company stock valued at $68,098,118. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Handelsbanken Fonder AB increased its holdings in Sandisk by 35.1% in the second quarter. Handelsbanken Fonder AB now owns 57,564 shares of the data storage provider’s stock worth $130,885,000 after buying an additional 14,964 shares during the last quarter. Tredje AP fonden bought a new position in shares of Sandisk during the 4th quarter valued at $7,821,000. ProShare Advisors LLC lifted its stake in shares of Sandisk by 1,301.5% in the 4th quarter. ProShare Advisors LLC now owns 33,637 shares of the data storage provider’s stock valued at $7,985,000 after purchasing an additional 31,237 shares during the last quarter. FourThought Financial Partners LLC bought a new stake in Sandisk in the fourth quarter worth $422,000. Finally, North Dakota State Investment Board acquired a new position in Sandisk during the fourth quarter worth $1,127,000.

About Sandisk

(Get Free Report)

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.

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