Sandisk (NASDAQ:SNDK) Stock Price Down 6.8% – Here’s Why

Shares of Sandisk Corporation (NASDAQ:SNDK) traded down 6.8% on Friday. The stock traded as low as $1,296.19 and last traded at $1,299.30. Approximately 8,795,799 shares traded hands during trading, a decline of 42% from the average session volume of 15,088,230 shares. The stock had previously closed at $1,394.83.

Key Headlines Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk has reportedly secured at least $93.9 billion in expected revenue through multiyear contracts, including financial protections if customers fail to meet commitments. This supports longer-term revenue visibility amid the market selloff. Sandisk Stock Is Falling on AI Fears. Its $93.9 Billion Contract Book Tells Another Story
• Positive Sentiment: Some analysts remain bullish, arguing that data-center and AI infrastructure demand is still in its early stages. One forecast suggested the stock could reach $4,128 over the next year if demand remains strong, while another maintained a Strong Buy view. Sandisk Stock Could Be Worth $4,128 in the Next Year
• Positive Sentiment: Sandisk’s $15.5 billion buyback authorization could support earnings per share and shareholder returns if management converts strong demand into sustainable free cash flow. The company is targeting adjusted free cash flow equal to 50% of revenue in fiscal 2028–2030. Sandisk: The Earnings Boom Is Only Half The Story
• Neutral Sentiment: Sandisk was upgraded by Zacks Research from Hold to Strong Buy, adding a positive analyst signal, although the upgrade has not offset broader sector selling.
• Negative Sentiment: Memory-chip stocks, including Sandisk, Micron and SK Hynix, are falling as investors worry about Chinese competition, the cyclical nature of memory pricing and whether exceptional margin growth can persist. Cathie Wood Says the Memory Chip Trend Is Up but the Cycles Are Vicious
• Negative Sentiment: A wider Nasdaq and AI-trade selloff is pressuring high-beta technology shares. Higher inflation data and comments leaving open the possibility of another Federal Reserve rate hike have pushed Treasury yields higher, encouraging investors to reduce risk. Nasdaq 100 Slides As Micron, SanDisk, CoreWeave Sink
• Negative Sentiment: Cathie Wood’s warning highlights concerns that memory-chip cycles can reverse sharply and that Chinese rivals could undermine pricing and profitability, increasing skepticism after Sandisk’s extraordinary rally. Cathie Wood Just Issued a Stark Warning

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. BNP Paribas Exane lowered their price target on Sandisk from $1,900.00 to $1,400.00 in a report on Thursday, August 6th. New Street Research set a $3,000.00 price target on shares of Sandisk in a research note on Thursday, August 6th. Sanford C. Bernstein reissued an “outperform” rating and issued a $3,000.00 target price (up from $1,700.00) on shares of Sandisk in a research report on Thursday, August 6th. Argus upgraded Sandisk from a “hold” rating to a “buy” rating and set a $1,600.00 price target on the stock in a research note on Monday, August 10th. Finally, UBS Group reissued an “overweight” rating and issued a $1,750.00 price objective on shares of Sandisk in a report on Friday, August 14th. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Sandisk presently has an average rating of “Moderate Buy” and a consensus target price of $2,120.65.

Sandisk Stock Down 6.8%

The stock has a market cap of $187.79 billion, a PE ratio of 17.82, a P/E/G ratio of 0.14 and a beta of 5.23. The business has a 50 day moving average price of $1,601.86 and a 200 day moving average price of $1,498.34.

Sandisk (NASDAQ:SNDK) last announced its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share for the quarter, beating the consensus estimate of $33.28 by $5.97. Sandisk had a return on equity of 87.84% and a net margin of 56.47%. The company had revenue of $8.96 billion during the quarter. During the same quarter in the prior year, the business posted $0.29 earnings per share. The firm’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. On average, research analysts predict that Sandisk Corporation will post 208.94 earnings per share for the current fiscal year.

Sandisk declared that its board has authorized a share 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 purchase up to 6.6% of its shares through open market purchases. Share repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Bernard Shek sold 600 shares of Sandisk stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $1,734.94, for a total value of $1,040,964.00. Following the completion of the transaction, the insider owned 25,588 shares in the company, valued at $44,393,644.72. The trade was a 2.29% decrease in their position. The sale 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, CEO David Goeckeler sold 33,841 shares of Sandisk stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $1,574.21, for a total value of $53,272,840.61. Following the completion of the transaction, the chief executive officer owned 382,865 shares of the company’s stock, valued at approximately $602,709,911.65. This represents a 8.12% 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. Insiders have sold 77,899 shares of company stock valued at $121,159,122 over the last quarter. Insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On Sandisk

A number of institutional investors have recently added to or reduced their stakes in SNDK. Rise Advisors LLC acquired a new position in Sandisk during the third quarter worth $205,000. Selective Wealth Management Inc. grew its position in shares of Sandisk by 10.6% in the third quarter. Selective Wealth Management Inc. now owns 343 shares of the data storage provider’s stock valued at $597,000 after purchasing an additional 33 shares during the period. GFG Capital LLC grew its position in shares of Sandisk by 64.6% in the third quarter. GFG Capital LLC now owns 163 shares of the data storage provider’s stock valued at $284,000 after purchasing an additional 64 shares during the period. Shelton Wealth Management LLC purchased a new stake in shares of Sandisk during the third quarter worth about $301,000. Finally, Pension & Wealth Management Advisors Inc. purchased a new stake in shares of Sandisk during the third quarter worth about $400,000.

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.