Sandisk (NASDAQ:SNDK) Shares Down 9% – Should You Sell?

Shares of Sandisk Corporation (NASDAQ:SNDK) traded down 9% during mid-day trading on Tuesday . The stock traded as low as $1,600.20 and last traded at $1,625.78. 18,296,948 shares traded hands during trading, an increase of 11% from the average daily volume of 16,505,275 shares. The stock had previously closed at $1,786.85.

Sandisk News Summary

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk’s recent Investor Day continued to support the long-term bull case. The company highlighted a roughly $93.9 billion customer backlog, growing AI-related storage demand and ambitious targets for higher gross, operating and free-cash-flow margins. The $93 Billion Reason Sandisk Is a Must-Own AI Stock
• Positive Sentiment: JPMorgan initiated coverage with a Buy-equivalent recommendation and a $2,250 price target, while other analysts have described Sandisk’s high-bandwidth flash products as potentially important for AI infrastructure. SanDisk Gets New Buy Recommendation
• Neutral Sentiment: The stock had risen roughly 550% to 656% year to date and nearly 30% in the prior five sessions, making profit-taking and position reduction more likely even as momentum indicators remained strong. $1,000 Invested in Sandisk Stock at the Start of 2026
• Negative Sentiment: A Wall Street Journal report triggered a broad selloff in memory stocks as investors rotated out of AI hardware winners. The move affected Sandisk, Micron and Western Digital, suggesting sector-wide de-risking rather than a company-specific operating setback. WSJ Report Sends Memory Stocks Down
• Negative Sentiment: Higher Treasury yields are pressuring expensive growth stocks and testing the extended memory boom trade. Investors remain concerned that Sandisk’s exceptional margins—driven largely by pricing strength—could weaken if supply improves or the memory cycle turns. Higher Rates Test the Memory Boom
• Negative Sentiment: Hedge fund manager David Tepper’s Appaloosa exited Sandisk and reduced its Micron position during the second quarter, reallocating toward large technology companies. That disclosure adds to concerns about institutional profit-taking after the stock’s extraordinary advance. David Tepper Cuts Micron Stake and Exits SanDisk

Analyst Ratings Changes

Several brokerages recently weighed in on SNDK. Barclays raised shares of Sandisk from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $1,200.00 to $2,300.00 in a research note on Tuesday, May 26th. Morgan Stanley lifted their target price on Sandisk from $1,100.00 to $1,750.00 and gave the stock an “overweight” rating in a report on Wednesday, June 3rd. Zacks Research upgraded Sandisk from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. Wells Fargo & Company increased their price target on Sandisk from $1,400.00 to $1,550.00 and gave the company an “equal weight” rating in a research note on Thursday. Finally, Weiss Ratings downgraded Sandisk from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $1,999.27.

Sandisk Stock Down 9.0%

The firm has a market cap of $240.76 billion, a P/E ratio of 22.30, a PEG ratio of 0.16 and a beta of 5.21. The stock’s 50-day simple moving average is $1,670.76 and its 200 day simple moving average is $1,195.28.

Sandisk (NASDAQ:SNDK) last posted its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share 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 return on equity of 87.84% and a net margin of 56.47%.The business’s revenue was up 371.6% on a year-over-year basis. During the same period last year, the business posted $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 Corporation will post 208.92 earnings per share for the current fiscal year.

Sandisk announced that its board has approved a stock repurchase program on Wednesday, August 5th that allows the company to buyback $14.00 billion in shares. This buyback authorization allows the data storage provider to reacquire up to 6.6% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In other Sandisk news, EVP Alper Ilkbahar sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the transaction, the executive vice president directly owned 52,677 shares of the company’s stock, valued at approximately $92,531,364.66. The trade was a 3.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Bernard Shek sold 600 shares of the 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 value of $697,296.00. Following the transaction, the insider owned 30,915 shares in the company, valued at $35,928,176.40. The trade was a 1.90% 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 quarter, insiders sold 3,800 shares of company stock valued at $6,504,856. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Dogwood Wealth Management LLC grew its holdings in Sandisk by 14.3% in the second quarter. Dogwood Wealth Management LLC now owns 48 shares of the data storage provider’s stock worth $109,000 after purchasing an additional 6 shares during the period. Castle Rock Wealth Management LLC raised its holdings in shares of Sandisk by 2.4% during the second quarter. Castle Rock Wealth Management LLC now owns 426 shares of the data storage provider’s stock valued at $969,000 after purchasing an additional 10 shares during the period. Legacy Wealth Asset Management LLC boosted its position in shares of Sandisk by 1.6% during the 2nd quarter. Legacy Wealth Asset Management LLC now owns 772 shares of the data storage provider’s stock worth $1,755,000 after purchasing an additional 12 shares in the last quarter. GHP Investment Advisors Inc. boosted its position in shares of Sandisk by 12.0% during the 1st quarter. GHP Investment Advisors Inc. now owns 121 shares of the data storage provider’s stock worth $77,000 after purchasing an additional 13 shares in the last quarter. Finally, Versant Capital Management Inc grew its stake in shares of Sandisk by 2.5% in the 2nd quarter. Versant Capital Management Inc now owns 527 shares of the data storage provider’s stock valued at $1,198,000 after buying an additional 13 shares during the period.

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.