Sandisk (NASDAQ:SNDK) Trading Up 7.4% – What’s Next?

Sandisk Corporation (NASDAQ:SNDK) shot up 7.4% on Friday . The company traded as high as $1,667.19 and last traded at $1,641.11. Approximately 20,302,619 shares were traded during trading, an increase of 23% from the average session volume of 16,480,279 shares. The stock had previously closed at $1,528.11.

Key Stories Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Stronger long-term outlook: Sandisk presented a financial model targeting approximately 80% gross margins, 75% operating margins, 50% free-cash-flow margins and mid-to-high-teens revenue growth through the latter part of the decade. Management also highlighted long-term customer agreements intended to reduce NAND’s traditional boom-bust cycle. Sandisk May Have Broken Memory’s Boom-Bust Cycle
• Positive Sentiment: Wall Street upgrades and targets: JPMorgan began coverage with an Overweight rating and a $2,250 price target, citing AI-driven storage demand and potential multiyear earnings growth. Wedbush reaffirmed Outperform with a $2,000 target, while Evercore ISI maintained a Buy rating and $2,800 target. JPMorgan Says There Are More Gains Ahead
• Positive Sentiment: AI demand and estimates: Analysts are raising earnings estimates as data-center and AI workloads increase demand for high-capacity flash storage. Recent quarterly results also substantially exceeded expectations, reinforcing the bullish earnings narrative. Earnings Estimates Moving Higher for Sandisk
• Neutral Sentiment: Heavy trading reflects elevated interest: The AI narrative has fueled unusually strong activity in the leveraged SNXX ETF, which exceeded 135 million shares in volume. This may amplify short-term momentum but does not directly change Sandisk’s fundamentals. Sandisk Stock Surges on AI Storage Boom
• Negative Sentiment: Execution and cycle risks remain: Skeptics question whether exceptionally high margins can persist. Potential NAND oversupply, aggressive Chinese competition from Yangtze Memory and additional industry capacity expected from 2028 could pressure pricing. Sandisk also lacks DRAM or HBM businesses to offset weakness in NAND. Sandisk Margin and Cycle Risks

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Cantor Fitzgerald reissued an “overweight” rating and issued a $2,900.00 target price on shares of Sandisk in a research note on Monday. Mizuho set a $1,900.00 price target on shares of Sandisk in a research note on Friday. UBS Group reissued an “overweight” rating and set a $1,750.00 price objective on shares of Sandisk in a research report on Friday. The Goldman Sachs Group reissued a “buy” rating and issued a $2,200.00 price target on shares of Sandisk in a research report on Thursday. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Sandisk in a report on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and a consensus price target of $1,999.27.

Sandisk Trading Up 7.4%

The company has a market capitalization of $243.03 billion, a P/E ratio of 22.51, a P/E/G ratio of 0.13 and a beta of 5.20. The stock has a 50 day moving average of $1,666.23 and a 200-day moving average of $1,177.84.

Sandisk (NASDAQ:SNDK) last announced its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, beating the consensus estimate 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 firm’s revenue for the quarter was up 371.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.29 earnings per share. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, sell-side analysts expect that Sandisk Corporation will post 208.92 EPS for the current fiscal year.

Sandisk declared that its board has approved a share buyback program on Wednesday, August 5th that allows the company to repurchase $14.00 billion in outstanding shares. This repurchase authorization allows the data storage provider to repurchase up to 6.6% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Activity at Sandisk

In other news, insider Bernard Shek sold 600 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total transaction of $697,296.00. Following the sale, the insider directly 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 legal filing 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 2,000 shares of Sandisk 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 completion of the transaction, the executive vice president directly owned 52,677 shares of the company’s stock, valued at $92,531,364.66. The trade was a 3.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 3,800 shares of company stock worth $6,504,856. Company insiders own 0.21% of the company’s stock.

Hedge Funds Weigh In On Sandisk

Institutional investors and hedge funds have recently modified their holdings of the stock. Eschler Asset Management LLP bought a new position in Sandisk during the second quarter valued at $2,512,000. Trybe Capital Management LP purchased a new stake in shares of Sandisk in the second quarter valued at approximately $191,769,000. Legal & General Group Plc bought a new stake in shares of Sandisk in the second quarter valued at about $1,236,765,000. The Manufacturers Life Insurance Company purchased a new stake in shares of Sandisk in the 2nd quarter worth approximately $180,439,000. Finally, Fiduciary Financial Advisors purchased a new stake in Sandisk during the second quarter worth $252,000.

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.