Sandisk (NASDAQ:SNDK) Trading Down 3.5% – Here’s Why

Shares of Sandisk Corporation (NASDAQ:SNDK) dropped 3.5% on Friday . The stock traded as low as $1,616.80 and last traded at $1,633.35. Approximately 9,308,881 shares were traded during trading, a decline of 42% from the average daily volume of 16,005,418 shares. The stock had previously closed at $1,692.59.

Key Headlines Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk remains a major beneficiary of rising artificial-intelligence infrastructure spending. Analysts point to multi-year contracted revenue, stronger NAND demand and the potential for sustained pricing power among memory suppliers. The Next Phase of the AI Boom Could Be Great News for NVIDIA, Micron, and SanDisk
• Positive Sentiment: A bullish long-term view argues that SanDisk’s emphasis on longer-term contractual pricing could reduce the historical volatility of NAND markets. Management’s projections for strong revenue growth and gross margins above 80% through 2030 support the optimistic thesis. Sandisk Shares Could Double (Or More) By 2030
• Positive Sentiment: Memory stocks initially received support from continued AI spending, including developments involving Oracle, helping SanDisk rise in premarket trading before broader selling emerged later in the session. Why Are Memory Chip Stocks Rising in Pre-Market Trading?
• Neutral Sentiment: SanDisk’s 2,107% one-year advance has made valuation and momentum major investor considerations. The exceptional gain increases the likelihood of profit-taking, even if the underlying AI opportunity remains intact. Morningstar on SanDisk’s 2,107% Year
• Neutral Sentiment: Investor commentary is divided: some see substantial long-term upside, while another analysis warns that the current NAND upcycle could weaken by 2027. This highlights the stock’s sensitivity to memory pricing and cyclical demand. Sandisk: NAND Party Likely To End In 2027
• Negative Sentiment: Storage and memory equities sold off as concerns about software efficiency and the sustainability of AI-related spending weighed on the sector. Seagate’s decline reinforced the industry-wide pressure. SanDisk Stock Drops Friday Afternoon
• Negative Sentiment: Investors continued taking profits after the sharp rally, while higher oil prices and inflation concerns raised fears of higher interest rates—particularly negative for high-beta technology stocks such as SNDK. Why Are Memory Stocks Falling?

Analyst Upgrades and Downgrades

SNDK has been the subject of several research reports. Bank of America lifted 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. Cantor Fitzgerald restated an “overweight” rating and issued a $2,900.00 target price on shares of Sandisk in a research note on Monday, August 10th. Mizuho dropped their price target on Sandisk from $1,900.00 to $1,875.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 25th. Evercore restated an “outperform” rating on shares of Sandisk in a research report on Thursday, August 13th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Sandisk in a research report on Thursday, August 6th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $1,998.14.

Sandisk Stock Down 3.5%

The company has a market cap of $239.16 billion, a P/E ratio of 22.41, a PEG ratio of 0.16 and a beta of 5.17. The company has a 50 day moving average price of $1,517.76 and a 200-day moving average price of $1,323.44.

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

Sandisk announced that its board has approved a share buyback program 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 reacquire up to 6.6% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, insider Bernard Shek sold 2,308 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $1,767.33, for a total transaction of $4,078,997.64. Following the completion of the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 transaction of $7,259,212.96. Following the sale, the executive vice president owned 44,134 shares of the company’s stock, valued at $67,991,957.72. The trade was a 9.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 9,220 shares of company stock valued at $14,829,223 in the last ninety days. Company insiders own 0.21% of the company’s stock.

Institutional Trading of Sandisk

Hedge funds have recently bought and sold shares of the company. California State Teachers Retirement System increased its stake in Sandisk by 235,032.6% in the 2nd quarter. California State Teachers Retirement System now owns 380,392,755 shares of the data storage provider’s stock valued at $864,910,419,000 after buying an additional 380,230,977 shares during the period. BlackRock Inc. purchased a new stake in Sandisk in the 2nd quarter worth approximately $23,408,732,000. State Street Corp acquired a new stake in shares of Sandisk during the 3rd quarter valued at $491,053,000. Arrowstreet Capital Limited Partnership purchased a new position in shares of Sandisk during the 3rd quarter valued at $297,293,000. Finally, Norges Bank acquired a new position in shares of Sandisk in the fourth quarter worth $518,889,000.

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.