Sandisk (NASDAQ:SNDK) Shares Down 6.8% – Here’s What Happened

Sandisk Corporation (NASDAQ:SNDK) was down 6.8% during mid-day trading on Thursday . The company traded as low as $1,163.09 and last traded at $1,258.58. 18,960,193 shares traded hands during trading, an increase of 15% from the average daily volume of 16,549,674 shares. The stock had previously closed at $1,350.50.

Key Headlines Impacting Sandisk

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

Several research firms have commented on SNDK. Cantor Fitzgerald upped their price objective on Sandisk from $1,800.00 to $2,900.00 and gave the company an “overweight” rating in a research note on Monday, June 8th. Zacks Research raised Sandisk from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 30th. Susquehanna cut their price target on Sandisk from $3,250.00 to $3,050.00 and set a “positive” rating for the company in a research note on Thursday, July 23rd. Barclays raised Sandisk from an “equal weight” rating to an “overweight” rating and increased their price target for the stock from $1,200.00 to $2,300.00 in a report on Tuesday, May 26th. Finally, Melius Research set a $2,350.00 price objective on shares of Sandisk in a research report on Monday, May 18th. Three analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $1,853.14.

Sandisk Trading Down 3.7%

The stock has a fifty day simple moving average of $1,699.98 and a two-hundred day simple moving average of $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 (EPS) for the quarter, topping analysts’ consensus estimates of $33.28 by $5.97. The business 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 quarterly revenue 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 research analysts anticipate that Sandisk Corporation will post 185.89 EPS for the current fiscal year.

Sandisk declared that its Board of Directors has authorized a share buyback program on Wednesday, August 5th that allows the company to buyback $14.00 billion in outstanding 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 typically a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Sandisk news, insider Bernard Shek sold 600 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total value of $697,296.00. Following the completion of the sale, the insider owned 30,915 shares of the company’s stock, valued at approximately $35,928,176.40. This trade represents a 1.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 2,000 shares of the business’s stock in a transaction on 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 sale, the executive vice president owned 52,677 shares in the company, valued at $92,531,364.66. The trade was a 3.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 6,246 shares of company stock worth $9,993,292. 0.21% of the stock is owned by corporate insiders.

Institutional Trading of Sandisk

A number of institutional investors have recently added to or reduced their stakes in SNDK. Osaic Holdings Inc. acquired a new stake in shares of Sandisk during the 2nd quarter valued at approximately $317,000. Merit Financial Group LLC acquired a new stake in shares of Sandisk in the 3rd quarter worth approximately $408,000. Dimensional Fund Advisors LP purchased a new position in Sandisk in the 3rd quarter valued at approximately $100,080,000. First Trust Advisors LP purchased a new position in Sandisk in the 3rd quarter valued at approximately $9,788,000. Finally, Blair William & Co. IL purchased a new position in Sandisk in the 3rd quarter valued at approximately $591,000.

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.