Sandisk (NASDAQ:SNDK) Stock Price Down 3.5% – Time to Sell?

Shares of Sandisk Corporation (NASDAQ:SNDK) dropped 3.5% on Wednesday . The company traded as low as $1,542.00 and last traded at $1,568.87. Approximately 15,946,263 shares were traded during mid-day trading, a decline of 3% from the average daily volume of 16,513,738 shares. The stock had previously closed at $1,625.78.

Key Stories Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk’s Investor Day and related analysis point to a potentially more durable business model, supported by AI-driven storage demand, contract-based sales, and targets of approximately 80% gross margin, 75% operating margin, and 50% free-cash-flow margin by fiscal 2028–2030. Why Sandisk’s 80% Margin Is More Than Just A Cycle Peak
• Positive Sentiment: AI infrastructure demand and a reported $93.9 billion customer backlog support the bullish view that Sandisk could capture significant value from next-generation flash storage. Sandisk’s Analyst Day Just Strengthened Micron’s $1,550 Bull Case
• Positive Sentiment: JPMorgan reportedly maintained an overweight rating and raised its price target to $2,250, citing Sandisk’s positioning in the AI-memory market. SanDisk Gets New Buy Recommendation
• Positive Sentiment: A rebound across memory peers, including SK Hynix and Micron, has provided some sector support and reinforces expectations for continued strong memory pricing.
• Neutral Sentiment: Analysts are divided after Sandisk’s roughly 3,911% 12-month rally. Some see substantial upside from AI storage, while others question valuation and the sustainability of current earnings. SanDisk Is Up 3,911% Over Twelve Months
• Neutral Sentiment: International revenue remains an important factor for Wall Street forecasts, with investors assessing whether global demand can support Sandisk’s growth outlook. Sandisk International Revenue Performance Explored
• Negative Sentiment: Investors are concerned that approximately two-thirds of Sandisk’s record revenue came from higher pricing rather than volume growth, raising doubts about how long exceptional margins can persist. Two-Thirds of Record Revenue Came From Price
• Negative Sentiment: Macro pressure is weighing on the group: higher Treasury yields and an apparent rotation out of crowded AI trades have triggered broad selling in memory stocks.
• Negative Sentiment: Technical analysts see resistance after the recent rebound, while the stock remains well below its June peak, increasing uncertainty over whether the correction has further to run. Can SNDK Defend Its Recovery?
• Negative Sentiment: Appaloosa, led by David Tepper, disclosed that it exited its entire 281,250-share Sandisk position during the quarter in which the stock reached its high, adding to profit-taking concerns. David Tepper Sold His Entire Sandisk Stake

Wall Street Analyst Weigh In

SNDK has been the subject of a number of analyst reports. Barclays upgraded Sandisk from an “equal weight” rating to an “overweight” rating and boosted their price target for the stock from $1,200.00 to $2,300.00 in a research report on Tuesday, May 26th. Bank of America upped their price target on shares of Sandisk from $2,100.00 to $2,500.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Raymond James Financial reiterated an “outperform” rating and set a $1,470.00 price objective on shares of Sandisk in a research note on Friday, May 1st. Zacks Research raised Sandisk from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 30th. Finally, UBS Group reiterated an “overweight” rating and set a $1,750.00 price target on shares of Sandisk in a research report on Friday, August 14th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $1,999.27.

Sandisk Stock Performance

The business’s 50 day moving average is $1,670.35 and its 200 day moving average is $1,203.01. The stock has a market cap of $232.33 billion, a price-to-earnings ratio of 21.52, a price-to-earnings-growth ratio of 0.16 and a beta of 5.21.

Sandisk (NASDAQ:SNDK) last released its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $33.28 by $5.97. Sandisk had a return on equity of 87.84% and a net margin of 56.47%.The company had revenue of $8.96 billion during the quarter. Sandisk’s revenue for the quarter was up 371.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Research analysts expect that Sandisk Corporation will post 208.92 earnings per share for the current year.

Sandisk declared that its Board of Directors has authorized a share repurchase plan on Wednesday, August 5th that allows the company to repurchase $14.00 billion in outstanding shares. This repurchase authorization allows the data storage provider to reacquire up to 6.6% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other Sandisk news, EVP Alper Ilkbahar sold 2,000 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president owned 52,677 shares in the company, valued at approximately $92,531,364.66. This represents a 3.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bernard Shek sold 600 shares of Sandisk stock in a transaction on Monday, August 3rd. The shares were 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 of the company’s stock, valued at $35,928,176.40. This trade represents a 1.90% decrease in their position. 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 3,800 shares of company stock worth $6,504,856 over the last ninety days. 0.21% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Sandisk

Several institutional investors have recently made changes to their positions in SNDK. BlackRock Inc. bought a new position in shares of Sandisk in the second quarter valued at approximately $23,408,732,000. State Street Corp acquired a new position in Sandisk during the 3rd quarter worth $491,053,000. Arrowstreet Capital Limited Partnership bought a new stake in Sandisk during the third quarter valued at about $297,293,000. Norges Bank acquired a new stake in shares of Sandisk in the fourth quarter valued at about $518,889,000. Finally, Bank of America Corp DE acquired a new stake in shares of Sandisk in the third quarter valued at about $190,425,000.

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.