Sandisk (NASDAQ:SNDK) Trading Up 13.7% – Should You Buy?

Sandisk Corporation (NASDAQ:SNDK) was up 13.7% on Thursday . The company traded as high as $1,580.88 and last traded at $1,528.11. 21,681,423 shares were traded during mid-day trading, an increase of 32% from the average daily volume of 16,461,711 shares. The stock had previously closed at $1,344.29.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk outlined an ambitious long-term financial model, including approximately 80% gross margins, 75% operating margins, 50% free-cash-flow margins and mid-to-high-teens revenue growth through the end of the decade. Management also highlighted long-term customer agreements intended to reduce exposure to the traditional memory boom-and-bust cycle. SanDisk Surges 55% From its July Low: Wall Street Just Got a New Roadmap
• Positive Sentiment: J.P. Morgan began coverage with an Overweight rating and a $2,250 price target, while Wedbush reaffirmed Outperform with a $2,000 target. Evercore ISI also maintained its Buy rating and $2,800 target. The recommendations reinforce expectations for additional earnings growth and potential shareholder returns. Sandisk Stock Tops the S&P 500 as Analysts Rally Behind Its AI Expansion
• Positive Sentiment: Analysts are raising earnings estimates following strong quarterly results and the Investor Day presentation. The company’s latest quarter significantly exceeded consensus expectations, while AI data-center demand and new flash-storage products are viewed as key growth catalysts.
• Positive Sentiment: Broader market conditions also helped: softer inflation data reduced expectations for a September Federal Reserve rate hike, supporting technology and semiconductor stocks. A strong sector-wide memory rally amplified buying in SNDK.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the company. Melius Research set a $2,350.00 price target on Sandisk in a research note on Monday, May 18th. Wells Fargo & Company raised their price objective on Sandisk from $1,400.00 to $1,550.00 and gave the stock an “equal weight” rating in a research note on Thursday. Morgan Stanley lifted their price objective on Sandisk from $1,100.00 to $1,750.00 and gave the company an “overweight” rating in a report on Wednesday, June 3rd. Mizuho set a $1,900.00 target price on Sandisk in a research report on Friday. Finally, Citigroup reduced their target price on Sandisk from $2,500.00 to $2,100.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Sandisk currently has a consensus rating of “Buy” and a consensus target price of $1,999.27.

Sandisk Stock Performance

The firm has a market cap of $243.03 billion, a P/E ratio of 22.51, a P/E/G ratio of 0.15 and a beta of 5.20. The company’s 50 day moving average is $1,667.87 and its 200 day moving average is $1,181.08.

Sandisk (NASDAQ:SNDK) last issued its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share 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 net margin of 56.47% and a return on equity of 87.84%. The business’s quarterly revenue was up 371.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, equities research analysts anticipate that Sandisk Corporation will post 208.92 EPS for the current year.

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

Insider Buying and Selling at Sandisk

In other Sandisk news, insider Bernard Shek sold 600 shares of the company’s stock in a transaction dated 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 transaction, the insider owned 30,915 shares of the company’s stock, valued at $35,928,176.40. This represents a 1.90% decrease in their position. 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, EVP Alper Ilkbahar sold 2,000 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the completion of the transaction, the executive vice president owned 52,677 shares of the company’s stock, valued at $92,531,364.66. This represents a 3.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 3,800 shares of company stock worth $6,504,856. 0.21% of the stock is currently owned by company insiders.

Institutional Trading of Sandisk

Several hedge funds and other institutional investors 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 valued at $130,885,000 after purchasing an additional 14,964 shares during the period. Allworth Financial LP lifted its holdings in Sandisk by 84.2% during the 4th quarter. Allworth Financial LP now owns 4,521 shares of the data storage provider’s stock worth $1,073,000 after buying an additional 2,067 shares during the period. Tredje AP fonden acquired a new position in Sandisk during the 4th quarter worth about $7,821,000. ProShare Advisors LLC grew its position 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 buying an additional 31,237 shares during the last quarter. Finally, FourThought Financial Partners LLC bought a new stake in shares of Sandisk in the 4th quarter valued at about $422,000.

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.