Sandisk (NASDAQ:SNDK) Shares Down 6.5% – Should You Sell?

Sandisk Corporation (NASDAQ:SNDK) dropped 6.5% during trading on Monday . The stock traded as low as $1,416.56 and last traded at $1,493.12. Approximately 13,586,036 shares were traded during trading, a decline of 17% from the average daily volume of 16,410,381 shares. The stock had previously closed at $1,596.08.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: AI-driven demand remains a key support. Surging data-center revenue, multi-year contracts and improving revenue visibility have fueled optimism that Sandisk can extend its recent rally. SNDK Jumps 25% in a Month: Is there More Room for the Stock to Rise?
• Positive Sentiment: Higher NAND flash pricing has significantly benefited results: Sandisk indicated that roughly two-thirds of its latest sequential revenue growth came from pricing, while TrendForce expects prices to rise another 10% to 15% this quarter. Sandisk Rode an Estimated 70% Jump in NAND Prices
• Positive Sentiment: A newly highlighted $14 billion share-buyback authorization could support earnings per share and signal management confidence after the stock’s substantial 2026 advance. $27 Billion in Buybacks
• Neutral Sentiment: Analysts and commentators remain divided over whether the memory upcycle can last longer than historical boom-and-bust cycles. Sandisk’s strong profitability and AI exposure support the bullish case, but the stock’s large prior gains increase sensitivity to valuation and profit-taking. Why Sandisk? Cyclicality Is Not The Only Open Question
• Negative Sentiment: Memory stocks sold off broadly after reports that Washington could allow Apple to source memory chips from Chinese suppliers, raising concerns about competition and future demand for Sandisk. Memory Stocks Slide on Report Apple May Source Chinese Chips
• Negative Sentiment: Samsung’s disappointing capital-return announcement and weakness across semiconductor shares intensified sector-wide selling, while investors reduced exposure ahead of Nvidia’s earnings report. Why are Micron, SK Hynix, SanDisk stocks falling today?

Analyst Ratings Changes

Several brokerages have recently commented on SNDK. The Goldman Sachs Group reaffirmed a “buy” rating and set a $2,200.00 price objective on shares of Sandisk in a research report on Thursday, August 13th. Argus upgraded shares of Sandisk from a “hold” rating to a “buy” rating in a report on Monday, August 10th. Raymond James Financial reiterated an “outperform” rating and set a $1,470.00 price objective on shares of Sandisk in a report on Friday, May 1st. Wells Fargo & Company increased their price objective on shares of Sandisk from $1,400.00 to $1,550.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 13th. Finally, Barclays raised Sandisk from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $1,200.00 to $2,300.00 in a research report on Tuesday, May 26th. Three equities research 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. Based on data from MarketBeat, Sandisk has an average rating of “Buy” and a consensus price target of $1,999.27.

Sandisk Trading Down 6.5%

The stock has a market capitalization of $218.62 billion, a P/E ratio of 20.48, a price-to-earnings-growth ratio of 0.16 and a beta of 5.20. The business has a fifty day simple moving average of $1,655.56 and a 200 day simple moving average of $1,224.03.

Sandisk (NASDAQ:SNDK) last released its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, beating analysts’ consensus estimates of $33.28 by $5.97. The business 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 company’s quarterly revenue was up 371.6% compared to the same quarter last year. During the same period in the previous 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, research analysts forecast that Sandisk Corporation will post 208.92 earnings per share for the current year.

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

Insider Activity at Sandisk

In related news, insider Bernard Shek sold 600 shares of Sandisk stock in a transaction 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 in the company, valued at approximately $35,928,176.40. This trade represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through 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 firm’s stock in a transaction on 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 sale, the executive vice president directly owned 52,677 shares of the company’s stock, valued at approximately $92,531,364.66. This represents a 3.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, 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 Trading of Sandisk

Several hedge funds have recently made changes to their positions in the company. Dunhill Financial LLC bought a new position in shares of Sandisk in the second quarter worth approximately $30,000. Mowery & Schoenfeld Wealth Management LLC bought a new stake in Sandisk during the second quarter valued at approximately $32,000. Kilter Group LLC bought a new stake in Sandisk during the second quarter valued at approximately $32,000. KERR FINANCIAL PLANNING Corp purchased a new position in Sandisk in the 2nd quarter worth approximately $34,000. Finally, Triumph Capital Management grew its stake in Sandisk by 220.0% in the 2nd quarter. Triumph Capital Management now owns 16 shares of the data storage provider’s stock worth $36,000 after buying an additional 11 shares in the last quarter.

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.