Sandisk (NASDAQ:SNDK) Price Target Cut to $1,400.00 by Analysts at Royal Bank Of Canada

Sandisk (NASDAQ:SNDK) had its price objective reduced by Royal Bank Of Canada from $1,600.00 to $1,400.00 in a report released on Friday, Benzinga reports. The firm currently has a “sector perform” rating on the data storage provider’s stock. Royal Bank Of Canada‘s price objective suggests a potential upside of 23.29% from the stock’s previous close.

A number of other research analysts have also recently commented on the company. Argus raised Sandisk from a “hold” rating to a “buy” rating and set a $1,600.00 price target on the stock in a report on Monday, August 10th. Susquehanna cut their price objective on shares of Sandisk from $2,745.00 to $2,720.00 and set a “positive” rating on the stock in a research report on Friday. UBS Group reaffirmed an “overweight” rating and issued a $1,750.00 price target on shares of Sandisk in a report on Friday, August 14th. Wedbush reiterated an “outperform” rating and issued a $2,000.00 price target on shares of Sandisk in a report on Friday, August 14th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $2,200.00 price objective (up from $1,200.00) on shares of Sandisk in a report on Thursday, August 13th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $2,065.85.

Sandisk Stock Down 14.6%

Shares of Sandisk stock traded down $194.48 during trading on Friday, reaching $1,135.57. 9,563,053 shares of the stock were exchanged, compared to its average volume of 14,753,030. Sandisk has a 1 year low of $183.00 and a 1 year high of $2,354.39. The stock’s fifty day moving average is $1,566.91 and its 200 day moving average is $1,247.03. The firm has a market cap of $164.12 billion, a price-to-earnings ratio of 15.61, a price-to-earnings-growth ratio of 0.14 and a beta of 5.23.

Sandisk (NASDAQ:SNDK) last issued its quarterly earnings results on Thursday, October 29th. The data storage provider reported $49.51 EPS for the quarter, topping analysts’ consensus estimates of $46.19 by $3.32. The firm had revenue of $11.03 billion for the quarter. Sandisk had a return on equity of 87.84% and a net margin of 56.47%. The business’s revenue for the quarter was up 23.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.22 earnings per share. Equities analysts forecast that Sandisk will post 210.92 earnings per share for the current year.

Sandisk announced that its board has initiated a stock buyback program on Wednesday, August 5th that permits the company to repurchase $14 billion in shares. This buyback authorization permits the data storage provider to buy up to 6.6% of its stock through open market purchases. Share buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Transactions at Sandisk

In other Sandisk news, CFO Luis Visoso sold 1,000 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $1,568.83, for a total transaction of $1,568,830.00. Following the completion of the transaction, the chief financial officer owned 130,976 shares in the company, valued at approximately $205,479,078.08. This represents a 0.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through 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 company’s stock in a transaction 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 transaction, the executive vice president directly owned 44,134 shares in the company, valued at approximately $67,991,957.72. This trade represents 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 a total of 77,899 shares of company stock worth $121,159,122 over the last three months. 0.29% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sandisk

A number of institutional investors have recently made changes to their positions in SNDK. BlackRock Inc. acquired a new position in Sandisk in the second quarter valued at $23,408,732,000. Situational Awareness LP increased its holdings in Sandisk by 42.4% during the 2nd quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider’s stock worth $5,673,739,000 after purchasing an additional 743,325 shares during the last quarter. Wellington Management Group LLP grew its position in shares of Sandisk by 71.2% during the second quarter. Wellington Management Group LLP now owns 1,066,886 shares of the data storage provider’s stock worth $2,425,811,000 after buying an additional 443,714 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Sandisk by 57.4% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 726,722 shares of the data storage provider’s stock worth $1,652,370,000 after buying an additional 264,935 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of Sandisk in the 2nd quarter worth about $1,621,353,000.

Key Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk reported fiscal Q1 revenue of approximately $11.03 billion and diluted EPS of $49.51, exceeding Wall Street expectations. Revenue rose 378% year over year, while GAAP net income reached $8.1 billion. Sandisk Q1 earnings beat
• Positive Sentiment: AI-related demand remains a major growth driver: data-center revenue increased 61% sequentially to $4.8 billion, and management said customers are locking in supply through the end of the decade. Long-term agreements reportedly provide substantial revenue visibility. CEO discusses customer demand
• Positive Sentiment: Management issued stronger fiscal Q2 guidance, projecting revenue of $12.2 billion to $12.6 billion and non-GAAP diluted EPS of $55 to $57. Sandisk also repurchased about $5 billion of stock during the quarter. Sandisk guidance and stock split
• Positive Sentiment: The board approved an 8-for-1 forward stock split effective November 19, which may improve share accessibility, although it does not change the company’s underlying value. Susquehanna maintained a positive rating despite trimming its price target slightly. Susquehanna price target
• Neutral Sentiment: Analysts remain divided: some view Sandisk as an attractive AI-infrastructure value play, while others argue that expectations already reflect much of the earnings improvement and that memory pricing may be approaching a peak. Analyst view on memory pricing
• Negative Sentiment: Sandisk was caught in a wider semiconductor sell-off following disappointing results from Amazon and Intel, while weakness in other memory stocks amplified sector pressure. Memory-stock sell-off
• Negative Sentiment: Investors are concerned that Sandisk’s sharply higher valuation leaves little room for execution disappointments, particularly if NAND pricing, margins or earnings growth slow. Valuation concerns
• Negative Sentiment: Growing competition from China’s ChangXin Memory Technologies adds a longer-term risk to Sandisk’s pricing power and market share, despite current supply shortages. CXMT revenue growth

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.