Sandisk (NASDAQ:SNDK) Stock Price Up 11% – Still a Buy?

Shares of Sandisk Corporation (NASDAQ:SNDK) shot up 11% on Friday . The company traded as high as $1,797.00 and last traded at $1,791.82. Approximately 17,296,647 shares were traded during trading, an increase of 9% from the average session volume of 15,837,746 shares. The stock had previously closed at $1,614.39.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk’s planned addition to the S&P 100 could increase visibility and generate additional demand from index-tracking funds. Why is SanDisk stock gaining 8% today?
• Positive Sentiment: Investors continue to focus on Sandisk’s strong financial momentum. The company recently reported quarterly earnings of $39.25 per share, ahead of the $33.28 consensus estimate, while revenue surged 371.6% year over year to approximately $8.97 billion. SanDisk stock surges on earnings and buyback
• Positive Sentiment: A newly authorized $14 billion share-repurchase program, equal to roughly 6.6% of shares outstanding, is supporting the bullish case by potentially reducing share count and signaling management’s confidence in valuation and cash generation. Sandisk unveiled a $14 billion buyback
• Positive Sentiment: AI infrastructure demand is boosting expectations for NAND flash and SSD products, while a broader rally in memory stocks has improved sector sentiment. Why AI memory stocks are rising
• Neutral Sentiment: Analyst commentary remains favorable, with Sandisk viewed as a direct way to participate in AI-driven storage growth; however, the stock’s sharp prior advance makes it sensitive to profit-taking and changing expectations.
• Negative Sentiment: China’s ChangXin Memory Technologies is preparing to enter the NAND market, creating a longer-term competitive threat that could pressure pricing and margins. CXMT enters the NAND market
• Negative Sentiment: CEO David Goeckeler and CFO Luis Felipe Visoso recently sold shares under pre-arranged trading plans. The sales were relatively small compared with their remaining holdings but may add caution after the stock’s substantial run.

Analysts Set New Price Targets

Several analysts recently commented on the stock. Wedbush reaffirmed an “outperform” rating and set a $2,000.00 target price on shares of Sandisk in a report on Friday, August 14th. Weiss Ratings cut Sandisk from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, September 10th. Mizuho decreased their target price on Sandisk from $1,900.00 to $1,875.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 25th. Citigroup dropped their price target on Sandisk from $2,500.00 to $2,100.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Finally, Zacks Research cut Sandisk from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 7th. Two research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $1,998.14.

Sandisk Stock Performance

The company has a fifty day simple moving average of $1,503.16 and a two-hundred day simple moving average of $1,353.83. The stock has a market capitalization of $262.36 billion, a price-to-earnings ratio of 24.58, a PEG ratio of 0.15 and a beta of 5.17.

Sandisk (NASDAQ:SNDK) last released its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $33.28 by $5.97. The company 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 business’s revenue for the quarter was up 371.6% compared to the same quarter last year. 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 208.92 earnings per share for the current year.

Sandisk declared that its board has approved a stock repurchase plan on Wednesday, August 5th that permits the company to repurchase $14.00 billion in outstanding shares. This repurchase authorization permits the data storage provider to purchase up to 6.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

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 transaction, 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 sale was disclosed in a document filed with the Securities & Exchange Commission, 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 company’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $1,767.33, for a total value of $4,078,997.64. Following the sale, the insider owned 25,305 shares of the company’s stock, valued at $44,722,285.65. The trade was a 8.36% 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. Over the last ninety days, insiders sold 44,058 shares of company stock valued at $68,098,118. 0.21% of the stock is owned by insiders.

Institutional Investors Weigh In On Sandisk

A number of hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in Sandisk in the 2nd quarter valued at $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 worth $866,310,000 after acquiring an additional 1,133,276 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its holdings in shares of Sandisk by 31.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,478,002 shares of the data storage provider’s stock worth $825,608,000 after acquiring an additional 828,332 shares during the last quarter. Situational Awareness LP lifted its position in Sandisk by 42.4% in the 2nd quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider’s stock valued at $5,673,739,000 after acquiring an additional 743,325 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Sandisk in the fourth quarter worth approximately $518,889,000.

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.