Sandisk (NASDAQ:SNDK) Trading 10.8% Higher – What’s Next?

Sandisk Corporation (NASDAQ:SNDK) shares shot up 10.8% during mid-day trading on Tuesday . The stock traded as high as $1,446.62 and last traded at $1,427.62. 14,231,170 shares were traded during trading, a decline of 14% from the average daily volume of 16,536,461 shares. The stock had previously closed at $1,288.03.

Key Stories Impacting Sandisk

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 Analyst Weigh In

A number of research analysts recently weighed in on SNDK shares. Evercore set a $2,800.00 price objective on Sandisk in a research note on Thursday. Melius Research set a $2,350.00 price objective on shares of Sandisk in a report on Monday, May 18th. Argus began coverage on shares of Sandisk in a research note on Wednesday, July 15th. They issued a “hold” rating on the stock. Raymond James Financial reaffirmed an “outperform” rating and issued a $1,470.00 price target on shares of Sandisk in a research report on Friday, May 1st. Finally, Zacks Research raised shares of Sandisk from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. Three equities research 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 company currently has a consensus rating of “Moderate Buy” and an average price target of $1,853.14.

Sandisk Stock Down 6.8%

The company has a market cap of $186.38 billion, a P/E ratio of 43.75 and a beta of 5.20. The firm has a fifty day moving average price of $1,717.30 and a 200 day moving average price of $1,141.98.

Sandisk (NASDAQ:SNDK) last released its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, beating the consensus estimate of $33.28 by $5.97. The business 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%. Sandisk’s revenue for the quarter was up 371.6% compared to the same quarter last year. During the same period last year, the company earned $0.29 earnings per share. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, sell-side analysts anticipate that Sandisk Corporation will post 64.52 earnings per share for the current year.

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

Insider Buying and Selling at Sandisk

In other Sandisk news, Director Necip Sayiner sold 579 shares of the stock in a transaction on Friday, May 8th. The shares were sold at an average price of $1,503.11, for a total value of $870,300.69. Following the sale, the director directly owned 2,900 shares in the company, valued at approximately $4,359,019. This trade represents a 16.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Alper Ilkbahar sold 2,000 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the completion of the sale, the executive vice president owned 52,677 shares of the company’s stock, valued at $92,531,364.66. This trade represents a 3.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 6,825 shares of company stock valued at $10,863,593. 0.21% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sandisk

Several large investors have recently made changes to their positions in the stock. Valley Wealth Managers Inc. bought a new position in Sandisk during the 1st quarter worth about $25,000. Whittier Trust Co. acquired a new stake in shares of Sandisk in the 4th quarter valued at approximately $26,000. Greenline Wealth Management LLC bought a new position in shares of Sandisk in the 4th quarter valued at about $26,000. Chung Wu Investment Group LLC acquired a new position in Sandisk during the fourth quarter worth approximately $27,000. Finally, IMG Wealth Management Inc. acquired a new position in shares of Sandisk during the 1st quarter worth approximately $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.