Sandisk (NASDAQ:SNDK) Raised to “Strong-Buy” at Zacks Research

Sandisk (NASDAQ:SNDK) was upgraded by equities researchers at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Tuesday, Zacks reports.

SNDK has been the topic of a number of other research reports. Susquehanna lowered their price objective on Sandisk from $3,050.00 to $2,745.00 and set a “positive” rating on the stock in a report on Thursday, August 6th. Wedbush reissued an “outperform” rating and set a $2,000.00 target price on shares of Sandisk in a research note on Friday, August 14th. UBS Group reissued an “overweight” rating and set a $1,750.00 target price on shares of Sandisk in a research note on Friday, August 14th. China Renaissance raised their price target on Sandisk from $2,000.00 to $2,250.00 and gave the company a “buy” rating in a report on Wednesday, August 19th. Finally, Royal Bank Of Canada lifted their price target on Sandisk from $1,300.00 to $1,600.00 and gave the company a “sector perform” rating in a research note on Friday, August 14th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $2,120.65.

Sandisk Stock Down 5.3%

Shares of NASDAQ:SNDK opened at $1,403.34 on Tuesday. Sandisk has a fifty-two week low of $130.50 and a fifty-two week high of $2,354.39. The firm’s 50-day simple moving average is $1,599.14 and its 200-day simple moving average is $1,492.85. The company has a market cap of $202.82 billion, a price-to-earnings ratio of 19.25, a PEG ratio of 0.15 and a beta of 5.23.

Sandisk (NASDAQ:SNDK) last posted its quarterly 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 firm had revenue of $8.96 billion during the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. The company’s revenue for the quarter was up 371.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.29 earnings per share. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, research analysts forecast that Sandisk will post 208.94 EPS for the current year.

Sandisk declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 5th that authorizes the company to repurchase $14.00 billion in outstanding shares. This repurchase authorization authorizes the data storage provider to repurchase up to 6.6% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Insider Activity at Sandisk

In related news, insider Bernard Shek sold 600 shares of the business’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $1,734.94, for a total transaction of $1,040,964.00. Following the sale, the insider owned 25,588 shares of the company’s stock, valued at approximately $44,393,644.72. The trade was a 2.29% decrease in their ownership of the stock. The transaction was disclosed in a filing 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, CEO David Goeckeler sold 33,841 shares of the company’s stock in a transaction dated 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 transaction, the chief executive officer owned 382,865 shares in the company, valued at $602,709,911.65. The trade was a 8.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 77,899 shares of company stock worth $121,159,122 over the last three months. 0.29% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Sandisk

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Sandisk during the second quarter valued at approximately $23,408,732,000. Situational Awareness LP increased its position 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 acquiring an additional 743,325 shares in the last quarter. Evergreen Quality Fund GP Ltd. acquired a new stake in shares of Sandisk in the fourth quarter worth $255,848,000. Wellington Management Group LLP increased its position in shares of Sandisk by 71.2% in the second quarter. Wellington Management Group LLP now owns 1,066,886 shares of the data storage provider’s stock worth $2,425,811,000 after acquiring an additional 443,714 shares in the last quarter. Finally, SG Americas Securities LLC raised its stake in shares of Sandisk by 108.4% in the 1st quarter. SG Americas Securities LLC now owns 944,503 shares of the data storage provider’s stock valued at $600,081,000 after acquiring an additional 491,359 shares during the period.

Sandisk News Summary

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Zacks upgraded SanDisk from “hold” to “strong buy,” signaling increased confidence in the company’s earnings outlook and potential recovery. The upgrade follows recent analyst commentary highlighting AI-driven demand and long-term growth opportunities.
• Positive Sentiment: SanDisk’s partnership with Meta Platforms to provide storage options for Meta VR Glasses supports the company’s position in emerging AI, virtual-reality and data-intensive applications, although the announcement has not offset broader sector selling. SanDisk Stock Drops Despite Meta Partnership
• Positive Sentiment: Several analysts continue to view the selloff as a buying opportunity, citing strong AI-related demand, robust NAND pricing and SanDisk’s reported long-term contracts and financial guarantees. Some bullish commentary has suggested substantially higher price targets. AI Memory Chip Selloff Looks Overblown
• Neutral Sentiment: The stock’s sharp volatility reflects conflicting signals: optimism about a supply-constrained AI buildout into 2027 versus concerns that the memory upcycle may be nearing a peak. SanDisk’s elevated beta makes it especially sensitive to changes in semiconductor sentiment. Bull Case for SanDisk for 2027
• Negative Sentiment: Chinese memory manufacturer CXMT’s progress toward high-end server-memory products has raised fears of greater competition, potentially pressuring SanDisk’s pricing, market share and future margins. Why Memory Stocks Are Falling
• Negative Sentiment: Hotter-than-expected U.S. inflation increased interest-rate concerns and contributed to a broader risk-off move in semiconductor shares, extending SanDisk’s recent decline.
• Negative Sentiment: SanDisk fell even after the Meta announcement as investors focused more heavily on the China-competition risk and weakness across the memory-chip group.

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.