Sandisk (NASDAQ:SNDK) Shares Up 7.7% – Time to Buy?

Sandisk Corporation (NASDAQ:SNDK)’s stock price shot up 7.7% on Wednesday. The stock traded as high as $1,408.45 and last traded at $1,404.77. Approximately 8,875,208 shares traded hands during mid-day trading, a decline of 40% from the average session volume of 14,805,718 shares. The stock had previously closed at $1,304.84.

Key Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk reported fiscal Q1 revenue of $11.03 billion and non-GAAP EPS of $49.51, exceeding Wall Street expectations. Revenue increased 378% year over year, while GAAP net income reached $8.1 billion. SanDisk Q1 2027 Earnings Call Transcript
• Positive Sentiment: Management projected fiscal Q2 revenue of $12.2 billion to $12.6 billion and highlighted strong AI-driven data-center demand, long-term customer supply agreements and a pipeline extending through 2030. Data-center revenue rose 61% sequentially. SanDisk CEO Sees Strong Customer Demand
• Positive Sentiment: The board approved an 8-for-1 forward stock split effective November 19, and Sandisk repurchased approximately $5 billion of stock during the quarter. These actions may improve trading accessibility and signal management confidence, although they do not change intrinsic value. Sandisk Tops Estimates and Announces Stock Split
• Neutral Sentiment: Analyst sentiment remains divided. Rosenblatt reaffirmed a $2,400 buy target and Susquehanna maintained a positive rating, while Wells Fargo cut its target to $1,300 with an equal-weight rating and RBC reduced its target to $1,400 with a sector-perform rating.
• Negative Sentiment: Investors appear concerned that memory pricing and margins may be near a peak, limiting further earnings upside after the stock’s substantial run. Analysts also flagged valuation risks despite the earnings beat. Analyst Sees Memory Pricing Peak
• Negative Sentiment: The broader technology and semiconductor sell-off, triggered partly by disappointing results from Amazon and Intel, pressured memory stocks across the sector. Rising competition from China’s CXMT added another concern for investors. Why Memory Stocks Are Falling

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. JPMorgan Chase & Co. began coverage on Sandisk in a report on Friday, August 14th. They set an “overweight” rating and a $2,250.00 target price for the company. Mizuho boosted their target price on shares of Sandisk from $1,875.00 to $2,050.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 6th. Argus raised Sandisk from a “hold” rating to a “buy” rating and set a $1,600.00 price target for the company in a research report on Monday, August 10th. Royal Bank Of Canada dropped their target price on shares of Sandisk from $1,600.00 to $1,400.00 and set a “sector perform” rating for the company in a research report on Friday. Finally, New Street Research set a $3,000.00 target price on shares of Sandisk in a research note on Thursday, August 6th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $2,056.23.

Sandisk Price Performance

The stock’s 50-day moving average price is $1,566.91 and its 200 day moving average price is $1,247.03. The firm has a market capitalization of $166.34 billion, a PE ratio of 15.79, a price-to-earnings-growth ratio of 0.14 and a beta of 5.23.

Shares of Sandisk are going to split before the market opens on Monday, November 9th. The 8-1 split was announced on Thursday, October 29th. The newly created shares will be payable to shareholders after the closing bell on Thursday, November 19th.

Sandisk (NASDAQ:SNDK) last announced its earnings results on Thursday, October 29th. The data storage provider reported $49.51 earnings per share for the quarter, topping the consensus estimate of $46.19 by $3.32. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. The company had revenue of $11.03 billion during the quarter. During the same period last year, the business earned $1.22 EPS. The company’s quarterly revenue was up 23.0% compared to the same quarter last year. Equities research analysts forecast that Sandisk Corporation will post 210.92 earnings per share for the current fiscal year.

Sandisk announced that its Board of Directors has initiated a share repurchase program on Wednesday, August 5th that authorizes the company to repurchase $14 billion in outstanding shares. This repurchase authorization authorizes the data storage provider to buy up to 6.6% of its shares through open market purchases. Stock repurchase programs are often a sign that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Luis Visoso sold 1,000 shares of Sandisk stock in a transaction dated Tuesday, September 15th. The stock was 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 approximately $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 SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 4,712 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $1,540.58, for a total value of $7,259,212.96. Following the sale, the executive vice president directly owned 44,134 shares of the company’s stock, valued at $67,991,957.72. This represents a 9.65% 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 $121,159,122. Insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On Sandisk

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MFG Investments LLC acquired a new position in shares of Sandisk during the 3rd quarter worth about $251,000. AIA Group Ltd increased its holdings in Sandisk by 51.2% during the 3rd quarter. AIA Group Ltd now owns 5,292 shares of the data storage provider’s stock worth $9,207,000 after acquiring an additional 1,792 shares during the period. Provenance Wealth Advisors LLC increased its position in shares of Sandisk by 20,000.0% in the third quarter. Provenance Wealth Advisors LLC now owns 201 shares of the data storage provider’s stock valued at $350,000 after acquiring an additional 200 shares during the period. RFG Holdings Inc. grew its stake in shares of Sandisk by 39.1% in the 3rd quarter. RFG Holdings Inc. now owns 331 shares of the data storage provider’s stock worth $577,000 after buying an additional 93 shares during the last quarter. Finally, Watershed Private Wealth LLC bought a new position in shares of Sandisk during the 3rd quarter valued at $419,000.

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.