Sandisk (NASDAQ:SNDK) Stock Price Down 5% – Here’s Why

Sandisk Corporation (NASDAQ:SNDK)’s share price fell 5% on Monday . The stock traded as low as $1,505.00 and last traded at $1,551.99. Approximately 9,520,469 shares traded hands during trading, a decline of 40% from the average session volume of 15,972,668 shares. The stock had previously closed at $1,633.35.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk’s multi-year New Business Model agreements cover approximately half of projected fiscal 2027 bit shipments and about two-thirds of fiscal 2028 shipments. These contracts could provide greater earnings visibility and reduce the company’s exposure to NAND price swings. Sandisk And the NAND Stabilization Test
• Positive Sentiment: Potential growth in enterprise SSD demand for AI inference, along with SanDisk’s UltraQLC, BiCS9, BiCS10 and High Bandwidth Flash products, could support a higher-value product mix and lower production costs. Sandisk And the NAND Stabilization Test
• Positive Sentiment: Some industry commentary suggests NAND prices may stabilize later this year, which could help SanDisk preserve margins if supply conditions improve without a sharp demand slowdown. GF Securities on NAND Prices and SanDisk

Analyst Upgrades and Downgrades

SNDK has been the subject of several analyst reports. Mizuho decreased their price objective on shares of Sandisk from $1,900.00 to $1,875.00 and set an “outperform” rating for the company in a research note on Tuesday, August 25th. Royal Bank Of Canada upped their target price on Sandisk from $1,300.00 to $1,600.00 and gave the company a “sector perform” rating in a report on Friday, August 14th. JPMorgan Chase & Co. initiated coverage on Sandisk in a report on Friday, August 14th. They set an “overweight” rating and a $2,250.00 price target on the stock. Sanford C. Bernstein restated an “outperform” rating on shares of Sandisk in a research note on Thursday, August 6th. Finally, Wells Fargo & Company raised their target price on Sandisk from $1,400.00 to $1,550.00 and gave the company an “equal weight” rating in a research report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,998.14.

Sandisk Stock Down 5.0%

The firm has a market capitalization of $227.24 billion, a PE ratio of 21.29, a P/E/G ratio of 0.16 and a beta of 5.17. The stock has a 50-day simple moving average of $1,517.76 and a 200-day simple moving average of $1,328.06.

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 analysts’ consensus estimates of $33.28 by $5.97. The firm had revenue of $8.96 billion for the quarter. Sandisk had a return on equity of 87.84% and a net margin of 56.47%.The firm’s quarterly revenue was up 371.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Equities analysts forecast that Sandisk Corporation will post 208.92 earnings per share for the current fiscal year.

Sandisk announced that its board has approved a stock buyback plan 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 repurchase up to 6.6% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at Sandisk

In other news, insider Bernard Shek sold 2,308 shares of Sandisk stock in a transaction dated 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 transaction, the insider owned 25,305 shares in the company, valued at $44,722,285.65. This trade represents a 8.36% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 4,712 shares of the company’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 transaction of $7,259,212.96. Following the sale, the executive vice president owned 44,134 shares in the company, valued at $67,991,957.72. The trade was a 9.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 9,220 shares of company stock valued at $14,829,223 in the last quarter. Company insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Sandisk

A number of large investors have recently made changes to their positions in the stock. California State Teachers Retirement System lifted its holdings in Sandisk by 235,032.6% during the 2nd quarter. California State Teachers Retirement System now owns 380,392,755 shares of the data storage provider’s stock worth $864,910,419,000 after purchasing an additional 380,230,977 shares in the last quarter. BlackRock Inc. bought a new stake in shares of Sandisk during the second quarter valued at about $23,408,732,000. Geode Capital Management LLC increased its position in shares of Sandisk by 44.9% during the fourth quarter. Geode Capital Management LLC now owns 3,655,860 shares of the data storage provider’s stock valued at $866,310,000 after buying an additional 1,133,276 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Sandisk by 31.3% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 3,478,002 shares of the data storage provider’s stock worth $825,608,000 after buying an additional 828,332 shares in the last quarter. Finally, Situational Awareness LP lifted its holdings in shares of Sandisk by 42.4% in the second quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider’s stock worth $5,673,739,000 after buying an additional 743,325 shares in the last quarter.

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.