Sandisk (NASDAQ:SNDK) Trading Down 6.8% – Should You Sell?

Sandisk Corporation (NASDAQ:SNDK) traded down 6.8% during mid-day trading on Thursday . The stock traded as low as $1,163.09 and last traded at $1,258.58. 18,960,193 shares changed hands during trading, an increase of 15% from the average daily volume of 16,549,674 shares. The stock had previously closed at $1,350.50.

More Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Fiscal Q4 results were significantly above expectations. Sandisk reported adjusted EPS of $39.25 and revenue of approximately $8.97 billion, up 371.6% year over year. Stronger pricing, higher volumes and a 437% increase in data-center revenue were driven by AI infrastructure demand. SNDK Q4 Earnings Beat Estimates, Revenues Rise on Datacenter Growth
• Positive Sentiment: AI-related demand and longer-term visibility remain supportive. Sandisk says customers are increasingly pursuing strategic, multi-year partnerships rather than short-term price negotiations. Analysts also point to long-term supply agreements, including billions of dollars in AI-related commitments, as potentially reducing NAND’s traditional boom-and-bust cycle. SanDisk CEO Discusses Strategic Customers
• Positive Sentiment: A $14 billion share-repurchase authorization provides potential support. The program allows Sandisk to repurchase up to roughly 6.6% of outstanding shares, signaling management’s confidence in cash generation and the company’s valuation. Sandisk Stock Buyback Report
• Neutral Sentiment: Fiscal Q1 2027 guidance was mixed. Sandisk forecast EPS of $44 to $46, ahead of consensus near $41.45, but revenue guidance of $10.3 billion to $10.8 billion was around or below elevated Wall Street expectations. This gap appears to be the main reason the stock fell after the earnings release. Sandisk Delivers Revenue Beat on AI Data-Center Demand
• Negative Sentiment: Margin and NAND-cycle concerns intensified. Investors questioned whether current pricing and margins can persist as supply increases and the memory market remains cyclical. Jefferies reduced its price target to $1,750 from $3,000 while retaining a Buy rating, citing margin and NAND-pricing risks. Jefferies Cuts Sandisk Price Target

Wall Street Analysts Forecast Growth

SNDK has been the subject of a number of analyst reports. The Goldman Sachs Group restated a “buy” rating and set a $1,200.00 price objective on shares of Sandisk in a research note on Friday, May 1st. Arete Research upgraded shares of Sandisk from a “hold” rating to a “strong-buy” rating in a report on Monday, April 13th. Raymond James Financial reissued an “outperform” rating and set a $1,470.00 price target on shares of Sandisk in a research report on Friday, May 1st. Bank of America raised their price target on shares of Sandisk from $2,100.00 to $2,500.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Finally, Citigroup reduced their price objective on shares of Sandisk from $2,500.00 to $2,100.00 and set a “buy” rating for the company in a research note on Thursday. Three analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $1,853.14.

Sandisk Price Performance

The firm has a market cap of $186.32 billion, a price-to-earnings ratio of 43.73 and a beta of 5.20. The firm has a fifty day simple moving average of $1,717.30 and a two-hundred day simple moving average of $1,141.98.

Sandisk (NASDAQ:SNDK) last posted its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $33.28 by $5.97. The firm had revenue of $8.96 billion for the quarter. Sandisk had a net margin of 34.19% and a return on equity of 44.06%. The business’s revenue was up 371.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Equities analysts anticipate that Sandisk Corporation will post 64.52 earnings per share for the current fiscal year.

Sandisk declared that its Board of Directors has initiated a share buyback plan on Wednesday, August 5th that authorizes the company to buyback $14.00 billion in outstanding shares. This buyback authorization authorizes the data storage provider to buy up to 6.6% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Activity at Sandisk

In related news, CAO Michael Pokorny sold 2,446 shares of the firm’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $1,426.18, for a total value of $3,488,436.28. Following the completion of the transaction, the chief accounting officer owned 22,375 shares in the company, valued at $31,910,777.50. This trade represents a 9.85% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Bernard Shek sold 600 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total value of $697,296.00. Following the completion of the transaction, the insider 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. 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 have sold 6,825 shares of company stock valued at $10,863,593. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of SNDK. State Street Corp purchased a new stake in Sandisk in the third quarter valued at approximately $491,053,000. Arrowstreet Capital Limited Partnership purchased a new position in Sandisk during the 3rd quarter worth approximately $297,293,000. Norges Bank acquired a new stake in Sandisk during the 4th quarter valued at approximately $518,889,000. Bank of America Corp DE acquired a new stake in Sandisk during the 3rd quarter valued at approximately $190,425,000. Finally, AQR Capital Management LLC purchased a new stake in shares of Sandisk in the 3rd quarter valued at $163,057,000.

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.