Sandisk (NASDAQ:SNDK) Stock Price Up 5.5% – Still a Buy?

Sandisk Corporation (NASDAQ:SNDK) shares were up 5.5% during trading on Monday. The stock traded as high as $1,407.00 and last traded at $1,371.12. 8,383,847 shares traded hands during trading, a decline of 44% from the average daily volume of 15,055,521 shares. The stock had previously closed at $1,299.30.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk’s upcoming fiscal first-quarter report on October 29 is a key potential catalyst. Investors will focus on whether strong demand, pricing, margins and management guidance support the company’s recently upgraded earnings outlook. Sandisk Q1 Preview
• Positive Sentiment: Recent bullish commentary points to strong cash generation, favorable earnings revisions and potential benefits from Nvidia’s NVHBM technology becoming an industry standard for high-bandwidth memory connections. Sandisk was also upgraded to Zacks’ Rank #1, or Strong Buy. Sandisk upgraded to Strong Buy
• Neutral Sentiment: Analysts and investors remain divided: some view the recent sell-off as technically oversold and see upside, while others argue that the stock’s low forward valuation depends on unusually strong memory pricing continuing. Investor commentary on Sandisk
• Negative Sentiment: Memory stocks broadly weakened after a selloff in Seoul revived fears that data-center and AI spending could slow. Sandisk, Micron and SK Hynix were all lower in premarket trading, highlighting sector-wide rather than company-specific pressure. AI memory stocks fall
• Negative Sentiment: Jim Cramer warned that Sandisk and Western Digital could be especially exposed if data-center capacity growth slows. Separately, China’s CXMT technology breakthrough has raised concerns about additional memory supply, price competition and pressure on Sandisk’s profit surge, which has been driven substantially by higher prices. Cramer warning on Sandisk

Wall Street Analysts Forecast Growth

SNDK has been the topic of several recent research reports. Arete Research upped their price target on Sandisk from $2,300.00 to $3,000.00 and gave the stock a “buy” rating in a report on Thursday, August 27th. Royal Bank Of Canada lifted their price objective on Sandisk from $1,300.00 to $1,600.00 and gave the company a “sector perform” rating in a research note on Friday, August 14th. UBS Group reissued an “overweight” rating and set a $1,750.00 price objective on shares of Sandisk in a research report on Friday, August 14th. Evercore restated an “outperform” rating and set a $3,100.00 target price (up from $1,400.00) on shares of Sandisk in a research note on Thursday, August 13th. Finally, Mizuho upped 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. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $2,120.65.

Sandisk Trading Down 0.4%

The company has a market capitalization of $197.34 billion, a PE ratio of 18.73, a P/E/G ratio of 0.14 and a beta of 5.23. The stock has a fifty day simple moving average of $1,608.16 and a 200-day simple moving average of $1,513.38.

Sandisk (NASDAQ:SNDK) last released its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 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 business had revenue of $8.96 billion for the quarter. During the same quarter in the previous year, the company posted $0.29 EPS. The company’s revenue was up 371.6% compared to the same quarter last year. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, equities research analysts predict that Sandisk Corporation will post 208.94 EPS for the current year.

Sandisk announced that its board has authorized a stock repurchase program on Wednesday, August 5th that allows the company to repurchase $14.00 billion in outstanding shares. This buyback authorization allows the data storage provider to reacquire up to 6.6% of its shares through open market purchases. Stock buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Bernard Shek sold 2,308 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $1,767.33, for a total value of $4,078,997.64. Following the completion of the transaction, the insider directly owned 25,305 shares of the company’s stock, valued at $44,722,285.65. This represents a 8.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available 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 stock in a transaction that occurred 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 transaction, the executive vice president owned 44,134 shares in the company, valued at $67,991,957.72. This represents a 9.65% decrease in their ownership of the stock. 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 ninety days, insiders sold 77,899 shares of company stock valued at $121,159,122. 0.29% of the stock is owned by company insiders.

Institutional Trading of Sandisk

Institutional investors have recently modified their holdings of the stock. Nisa Investment Advisors LLC boosted its stake in shares of Sandisk by 2.7% in the third quarter. Nisa Investment Advisors LLC now owns 33,298 shares of the data storage provider’s stock valued at $57,935,000 after buying an additional 886 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its holdings in Sandisk by 25,618.6% during the third quarter. Robeco Institutional Asset Management B.V. now owns 99,788 shares of the data storage provider’s stock worth $173,620,000 after acquiring an additional 99,400 shares during the period. Diversify Advisory Services LLC grew its holdings in Sandisk by 186.2% during the third quarter. Diversify Advisory Services LLC now owns 4,605 shares of the data storage provider’s stock worth $8,012,000 after acquiring an additional 2,996 shares during the period. Revisor Wealth Management LLC raised its position in Sandisk by 76.8% in the third quarter. Revisor Wealth Management LLC now owns 571 shares of the data storage provider’s stock worth $993,000 after acquiring an additional 248 shares in the last quarter. Finally, Blue Jean Financial LLC purchased a new position in Sandisk in the third quarter worth $3,311,000.

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.