Sandisk (NASDAQ:SNDK) Trading 7.4% Higher – Still a Buy?

Sandisk Corporation (NASDAQ:SNDK) shot up 7.4% during mid-day trading on Friday . The stock traded as high as $1,667.19 and last traded at $1,641.11. Approximately 20,302,619 shares were traded during mid-day trading, an increase of 23% from the average session volume of 16,480,279 shares. The stock had previously closed at $1,528.11.

More Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk outlined an ambitious long-term financial model, including approximately 80% gross margins, 75% operating margins, 50% free-cash-flow margins and mid-to-high-teens revenue growth through the end of the decade. Management also highlighted long-term customer agreements intended to reduce exposure to the traditional memory boom-and-bust cycle. SanDisk Surges 55% From its July Low: Wall Street Just Got a New Roadmap
• Positive Sentiment: J.P. Morgan began coverage with an Overweight rating and a $2,250 price target, while Wedbush reaffirmed Outperform with a $2,000 target. Evercore ISI also maintained its Buy rating and $2,800 target. The recommendations reinforce expectations for additional earnings growth and potential shareholder returns. Sandisk Stock Tops the S&P 500 as Analysts Rally Behind Its AI Expansion
• Positive Sentiment: Analysts are raising earnings estimates following strong quarterly results and the Investor Day presentation. The company’s latest quarter significantly exceeded consensus expectations, while AI data-center demand and new flash-storage products are viewed as key growth catalysts.
• Positive Sentiment: Broader market conditions also helped: softer inflation data reduced expectations for a September Federal Reserve rate hike, supporting technology and semiconductor stocks. A strong sector-wide memory rally amplified buying in SNDK.

Wall Street Analysts Forecast Growth

SNDK has been the topic of a number of research analyst reports. Citigroup cut their target price on Sandisk from $2,500.00 to $2,100.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Evercore reissued an “outperform” rating on shares of Sandisk in a research report on Thursday. Bank of America raised their price target on Sandisk from $2,100.00 to $2,500.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Wedbush reaffirmed an “outperform” rating and set a $2,000.00 price target on shares of Sandisk in a research report on Friday. Finally, Morgan Stanley boosted their price objective on Sandisk from $1,100.00 to $1,750.00 and gave the company an “overweight” rating in a research note on Wednesday, June 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $1,999.27.

Sandisk Stock Performance

The business has a 50-day simple moving average of $1,667.87 and a two-hundred day simple moving average of $1,181.08. The company has a market capitalization of $243.03 billion, a price-to-earnings ratio of 22.51, a PEG ratio of 0.16 and a beta of 5.20.

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 business had revenue of $8.96 billion for the quarter. During the same period in the previous year, the firm posted $0.29 EPS. The company’s revenue for the quarter was up 371.6% on a year-over-year basis. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Research analysts predict that Sandisk Corporation will post 208.92 EPS for the current fiscal year.

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

Insiders Place Their Bets

In other news, EVP Alper Ilkbahar sold 2,000 shares of Sandisk stock in a transaction dated 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 sale, the executive vice president owned 52,677 shares of the company’s stock, valued at $92,531,364.66. The trade was a 3.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Bernard Shek sold 600 shares of the business’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total transaction of $697,296.00. Following the transaction, the insider owned 30,915 shares in the company, valued at approximately $35,928,176.40. This trade represents a 1.90% decrease in their ownership of the stock. 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. In the last 90 days, insiders have sold 3,800 shares of company stock valued at $6,504,856. 0.21% of the stock is owned by insiders.

Institutional Investors Weigh In On Sandisk

A number of institutional investors have recently added to or reduced their stakes in the business. Valley Wealth Managers Inc. purchased a new position in shares of Sandisk during the 1st quarter worth approximately $25,000. Whittier Trust Co. purchased a new stake in shares of Sandisk in the fourth quarter valued at approximately $26,000. Greenline Wealth Management LLC purchased a new stake in shares of Sandisk in the fourth quarter valued at approximately $26,000. Chung Wu Investment Group LLC acquired a new position in Sandisk during the fourth quarter worth $27,000. Finally, IMG Wealth Management Inc. acquired a new position in Sandisk during the first quarter worth $29,000.

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.