Sandisk (NASDAQ:SNDK) Stock Price Down 22.3% – Here’s What Happened

Sandisk Corporation (NASDAQ:SNDK) fell 22.3% during mid-day trading on Thursday. The company traded as low as $803.97 and last traded at $806.43. Approximately 29,465,930 shares changed hands during mid-day trading, an increase of 99% from the average session volume of 14,792,248 shares. The stock had previously closed at $1,037.40.

Key Stories Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Memory and storage stocks rallied after Thursday’s steep decline, helping lift Sandisk as investors returned to beaten-down AI-linked chip shares. SanDisk Surges Following Post-Midterm Crash
• Positive Sentiment: Recent results and guidance remain strong: Sandisk beat fiscal Q1 earnings expectations, and management forecasts fiscal Q2 adjusted EPS of $55–$57 per share on a pre-split basis. Analysts also point to strong enterprise SSD demand from AI data centers and a substantial pipeline of customer commitments. Why Sandisk Stock Bounced Back Friday
• Positive Sentiment: Some analysts see the steep correction as an opportunity, arguing that Sandisk’s valuation is low relative to its growth prospects and that long-term supply agreements support demand visibility. Sandisk: 3.5x P/E And Robotics Potential Changed My Mind
• Neutral Sentiment: The announced 8-for-1 stock split is approaching and may make shares more accessible to some investors, but it does not change the company’s underlying value or fundamentals. Sandisk Is Splitting Its Stock 8-for-1
• Negative Sentiment: Risks remain after the recent sell-off: investors fear potential delays to data-center spending and question whether unusually high NAND prices and margins are sustainable. One bearish view highlights slowing NAND price increases, weaker consumer demand, and the possibility that second-half results fall short of expectations. Sandisk: Cheap, But Cheap For A Reason

Wall Street Analysts Forecast Growth

SNDK has been the subject of several analyst reports. Cantor Fitzgerald reduced their target price on Sandisk from $2,900.00 to $2,200.00 and set an “overweight” rating for the company in a report on Monday, October 26th. Weiss Ratings cut Sandisk from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, October 14th. Mizuho lifted their price target on Sandisk from $1,875.00 to $2,050.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 6th. Rosenblatt Securities restated a “buy” rating and set a $2,400.00 price objective on shares of Sandisk in a report on Friday, October 30th. Finally, Susquehanna reduced their price objective on shares of Sandisk from $2,745.00 to $2,720.00 and set a “positive” rating for the company in a research note on Friday, October 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Sandisk has a consensus rating of “Moderate Buy” and a consensus price target of $2,056.23.

Sandisk Stock Performance

The firm’s 50 day simple moving average is $1,504.43 and its 200-day simple moving average is $1,264.98. The company has a market capitalization of $118.82 billion, a price-to-earnings ratio of 6.69, a P/E/G ratio of 0.09 and a beta of 5.66.

Sandisk shares are going to split on Friday, November 20th. The 8-1 split was announced on Thursday, October 29th. The newly created shares will be distributed to shareholders after the market closes on Thursday, November 19th.

Sandisk (NASDAQ:SNDK) last posted its quarterly earnings results on Thursday, October 29th. The data storage provider reported $49.51 earnings per share for the quarter, beating the consensus estimate of $46.19 by $3.32. The firm had revenue of $11.03 billion for the quarter. Sandisk had a return on equity of 125.70% and a net margin of 67.04%. The firm’s quarterly revenue was up 23.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.22 earnings per share. As a group, equities analysts anticipate that Sandisk Corporation will post 226.01 earnings per share for the current fiscal year.

Sandisk declared that its board has authorized a stock buyback plan on Wednesday, August 5th that allows the company to buy back $14 billion in outstanding shares. This buyback authorization allows the data storage provider to buy up to 6.6% of its stock through open market purchases. Share buyback plans are usually an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In related news, CEO David Goeckeler sold 33,841 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $1,574.21, for a total transaction of $53,272,840.61. Following the completion of the sale, the chief executive officer directly owned 382,865 shares in the company, valued at approximately $602,709,911.65. This trade represents a 8.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 that occurred on 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 transaction, the chief financial officer directly owned 130,976 shares in the company, valued at $205,479,078.08. The trade was a 0.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 77,899 shares of company stock worth $121,156,782 over the last quarter. Company insiders own 0.29% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of Sandisk during the 2nd quarter valued at $23,408,732,000. Situational Awareness LP grew its holdings in shares of Sandisk by 42.4% during the 2nd quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider’s stock valued at $5,673,739,000 after acquiring an additional 743,325 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Sandisk by 71.2% in the second quarter. Wellington Management Group LLP now owns 1,066,886 shares of the data storage provider’s stock worth $2,425,811,000 after acquiring an additional 443,714 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Sandisk by 57.4% in the second 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 worth $1,652,370,000 after acquiring an additional 264,935 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in shares of Sandisk in the second quarter worth $1,621,353,000.

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.