Sandisk (NASDAQ:SNDK) Stock Price Down 6% – Here’s Why

Sandisk Corporation (NASDAQ:SNDK) traded down 6% on Monday. The stock traded as low as $1,464.43 and last traded at $1,487.33. 8,636,081 shares were traded during mid-day trading, a decline of 43% from the average session volume of 15,202,261 shares. The stock had previously closed at $1,581.82.

Key Stories Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk entered a data-storage partnership with Meta Platforms to support Meta’s VR Glasses, potentially creating a new demand channel for its storage products. SanDisk Stock Drops Despite Meta Partnership
• Positive Sentiment: Analysts and investment commentators continue to identify SNDK as a buy-the-dip opportunity, citing strong AI-related memory demand, long-term industry growth and potentially attractive forward valuation. One bullish forecast places the stock at $3,000 over the next two years. AI Memory Chip Selloff Looks Overblown
• Positive Sentiment: S&P Global upgraded SanDisk’s credit rating to BBB from BB+, reflecting stronger cash flows and rising AI-driven demand. The company’s contractual commitments and robust NAND pricing are also cited as support for its cash-generation outlook. SanDisk Credit Rating Upgrade
• Neutral Sentiment: Hotter-than-expected U.S. inflation has pressured technology valuations by increasing concerns that interest rates could remain elevated. A mixed report from chip-equipment maker ASML also failed to provide a broad boost to memory shares. Why Memory Stocks Are Falling
• Negative Sentiment: Chinese memory manufacturer CXMT’s advances and plans to target high-end server memory have intensified fears that future competition could pressure SanDisk’s pricing, margins and market share. The concern has triggered a broader selloff across memory stocks. CXMT Targets Server Memory
• Negative Sentiment: Investors are also reducing exposure to AI-related semiconductor stocks amid worries about AI funding, sector valuations and whether elevated memory earnings can persist through the cycle. Chip Stocks Face AI Funding and China Concerns

Analyst Ratings Changes

Several analysts have recently commented on the stock. Rosenblatt Securities initiated coverage on shares of Sandisk in a report on Tuesday, September 22nd. They issued a “buy” rating and a $2,400.00 target price for the company. Evercore reaffirmed an “outperform” rating and set a $3,100.00 price target (up from $1,400.00) on shares of Sandisk in a research report on Thursday, August 13th. Royal Bank Of Canada increased their price target on shares of Sandisk from $1,300.00 to $1,600.00 and gave the company a “sector perform” rating in a research report on Friday, August 14th. Raymond James Financial boosted their price objective on Sandisk from $1,470.00 to $2,000.00 and gave the company an “outperform” rating in a research note on Thursday, August 6th. Finally, Cantor Fitzgerald restated an “overweight” rating and set a $2,900.00 target price (up from $1,800.00) on shares of Sandisk in a research report on Monday, August 10th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $2,120.65.

Sandisk Price Performance

The stock has a 50 day moving average of $1,598.08 and a 200 day moving average of $1,487.22. The firm has a market cap of $202.89 billion, a P/E ratio of 19.27, a PEG ratio of 0.15 and a beta of 5.23.

Sandisk (NASDAQ:SNDK) last issued 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 return on equity of 87.84% and a net margin of 56.47%. The company’s revenue for the quarter was up 371.6% on a year-over-year basis. During the same period last year, the firm earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, research analysts predict that Sandisk Corporation will post 208.94 EPS for the current fiscal year.

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

Insider Activity

In related news, EVP Alper Ilkbahar sold 4,712 shares of the company’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $1,540.58, for a total transaction of $7,259,212.96. Following the completion of the sale, the executive vice president directly owned 44,134 shares in the company, valued at $67,991,957.72. This represents a 9.65% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Luis Visoso sold 1,000 shares of the business’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $1,568.83, for a total transaction of $1,568,830.00. Following the completion of the transaction, the chief financial officer owned 130,976 shares in the company, valued at $205,479,078.08. The trade was a 0.76% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 77,899 shares of company stock valued at $121,159,122 in the last three months. Corporate insiders own 0.29% of the company’s stock.

Institutional Trading of Sandisk

A number of hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Sandisk during the second quarter valued at approximately $23,408,732,000. Situational Awareness LP grew its stake 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 during the last quarter. Wellington Management Group LLP increased its holdings in shares of Sandisk by 71.2% during the second quarter. Wellington Management Group LLP now owns 1,066,886 shares of the data storage provider’s stock valued at $2,425,811,000 after acquiring an additional 443,714 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Sandisk by 57.4% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 726,722 shares of the data storage provider’s stock valued at $1,652,370,000 after purchasing an additional 264,935 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in Sandisk during the 2nd quarter valued at about $1,621,353,000.

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.