Sandisk (NASDAQ:SNDK) Shares Up 3.6% – Time to Buy?

Sandisk Corporation (NASDAQ:SNDK) was up 3.6% during mid-day trading on Friday. The stock traded as high as $912.09 and last traded at $835.06. Approximately 17,512,449 shares changed hands during mid-day trading, an increase of 18% from the average session volume of 14,814,455 shares. The stock had previously closed at $806.43.

Trending Headlines about Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Memory and storage shares recovered after Thursday’s steep decline, with reports pointing to continued demand for computer memory and AI-related storage. The rebound may reflect dip-buying, though it does not resolve concerns about the sector’s outlook. Why Sandisk Stock Bounced Back Friday
• Positive Sentiment: Some analysts see the selloff as an opportunity, citing Sandisk’s strong enterprise SSD demand, long-term customer commitments, and a valuation they consider attractive. Sandisk also recently beat earnings expectations. Sandisk: 3.5x P/E And Robotics Potential Changed My Mind
• Neutral Sentiment: The announced 8-for-1 stock split could make shares more accessible to some investors, but a split does not change the company’s underlying value or business fundamentals. Sandisk Is Splitting Its Stock 8-for-1
• Negative Sentiment: The main pressure is a broad retreat from AI-linked stocks, fueled by concerns that election-related policy shifts or data-center delays could weaken chip demand. Sandisk has been caught in the sector selloff despite strong recent results. SanDisk Leads Memory Stocks Lower
• Negative Sentiment: Bearish analysts warn that NAND price increases may be slowing and that exceptional margins could be cyclical. Expanding NAND production by China’s YMTC also raises longer-term competitive risk. Sandisk: Cheap, But Cheap For a Reason

Wall Street Analyst Weigh In

A number of research firms recently weighed in on SNDK. Mizuho raised their price target on shares of Sandisk from $1,875.00 to $2,050.00 and gave the company an “outperform” rating in a research report on Tuesday, October 6th. Citigroup reissued a “buy” rating on shares of Sandisk in a research report on Thursday, October 1st. Weiss Ratings cut shares of Sandisk from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 14th. JPMorgan Chase & Co. initiated coverage on Sandisk in a research note on Friday, August 14th. They issued an “overweight” rating and a $2,250.00 target price on the stock. Finally, Bank of America reaffirmed a “buy” rating and issued a $2,000.00 target price on shares of Sandisk in a report on Friday, October 30th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $2,056.23.

Sandisk Trading Up 3.6%

The stock’s fifty day moving average price is $1,517.43 and its 200 day moving average price is $1,263.07. The stock has a market cap of $118.82 billion, a P/E ratio of 6.69, a price-to-earnings-growth ratio of 0.08 and a beta of 5.66.

Sandisk shares are scheduled to split on the morning of Friday, November 20th. The 8-1 split was announced on Thursday, October 29th. The newly minted shares will be issued to shareholders after the closing bell on Thursday, November 19th.

Sandisk (NASDAQ:SNDK) last posted its quarterly earnings data on Thursday, October 29th. The data storage provider reported $49.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $46.19 by $3.32. The firm had revenue of $11.03 billion during the quarter. Sandisk had a return on equity of 125.70% and a net margin of 67.04%. Sandisk’s revenue for the quarter was up 23.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.22 earnings per share. On average, analysts anticipate that Sandisk Corporation will post 222.70 earnings per share for the current year.

Sandisk announced that its board has authorized a share repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $14 billion in outstanding shares. This repurchase authorization authorizes the data storage provider to reacquire up to 6.6% of its stock through open market purchases. Share repurchase plans are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, CFO Luis Visoso sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $1,568.83, for a total value of $1,568,830.00. Following the sale, the chief financial officer directly owned 130,976 shares of the company’s stock, valued at $205,479,078.08. This trade represents a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bernard Shek sold 600 shares of the company’s stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $1,158.26, for a total value of $694,956.00. Following the transaction, the insider directly owned 24,666 shares of the company’s stock, valued at $28,569,641.16. The trade was a 2.37% decrease in their position. 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 have sold 77,899 shares of company stock valued at $121,156,782. 0.29% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in SNDK. Handelsbanken Fonder AB raised its holdings in shares of Sandisk by 35.1% in the second quarter. Handelsbanken Fonder AB now owns 57,564 shares of the data storage provider’s stock valued at $130,885,000 after purchasing an additional 14,964 shares during the last quarter. Focus Partners Advisor Solutions LLC bought a new stake in shares of Sandisk in the second quarter worth $4,775,000. Florida Financial Advisors LLC acquired a new position in Sandisk during the first quarter worth $2,747,000. UNICOM Systems Inc. boosted its holdings in Sandisk by 14.9% during the second quarter. UNICOM Systems Inc. now owns 58,500 shares of the data storage provider’s stock worth $133,013,000 after purchasing an additional 7,600 shares during the last quarter. Finally, Affinity Capital Advisors LLC bought a new stake in Sandisk during the 2nd quarter worth about $2,506,000.

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.