Sandisk (NASDAQ:SNDK) Shares Down 3.5% – What’s Next?

Sandisk Corporation (NASDAQ:SNDK) shares traded down 3.5% during mid-day trading on Wednesday . The company traded as low as $1,542.00 and last traded at $1,568.87. 15,946,263 shares were traded during mid-day trading, a decline of 3% from the average daily volume of 16,513,738 shares. The stock had previously closed at $1,625.78.

Key Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk’s Investor Day and related analysis point to a potentially more durable business model, supported by AI-driven storage demand, contract-based sales, and targets of approximately 80% gross margin, 75% operating margin, and 50% free-cash-flow margin by fiscal 2028–2030. Why Sandisk’s 80% Margin Is More Than Just A Cycle Peak
• Positive Sentiment: AI infrastructure demand and a reported $93.9 billion customer backlog support the bullish view that Sandisk could capture significant value from next-generation flash storage. Sandisk’s Analyst Day Just Strengthened Micron’s $1,550 Bull Case
• Positive Sentiment: JPMorgan reportedly maintained an overweight rating and raised its price target to $2,250, citing Sandisk’s positioning in the AI-memory market. SanDisk Gets New Buy Recommendation
• Positive Sentiment: A rebound across memory peers, including SK Hynix and Micron, has provided some sector support and reinforces expectations for continued strong memory pricing.
• Neutral Sentiment: Analysts are divided after Sandisk’s roughly 3,911% 12-month rally. Some see substantial upside from AI storage, while others question valuation and the sustainability of current earnings. SanDisk Is Up 3,911% Over Twelve Months
• Neutral Sentiment: International revenue remains an important factor for Wall Street forecasts, with investors assessing whether global demand can support Sandisk’s growth outlook. Sandisk International Revenue Performance Explored
• Negative Sentiment: Investors are concerned that approximately two-thirds of Sandisk’s record revenue came from higher pricing rather than volume growth, raising doubts about how long exceptional margins can persist. Two-Thirds of Record Revenue Came From Price
• Negative Sentiment: Macro pressure is weighing on the group: higher Treasury yields and an apparent rotation out of crowded AI trades have triggered broad selling in memory stocks.
• Negative Sentiment: Technical analysts see resistance after the recent rebound, while the stock remains well below its June peak, increasing uncertainty over whether the correction has further to run. Can SNDK Defend Its Recovery?
• Negative Sentiment: Appaloosa, led by David Tepper, disclosed that it exited its entire 281,250-share Sandisk position during the quarter in which the stock reached its high, adding to profit-taking concerns. David Tepper Sold His Entire Sandisk Stake

Analysts Set New Price Targets

A number of brokerages have recently commented on SNDK. Raymond James Financial reiterated an “outperform” rating and set a $1,470.00 price target on shares of Sandisk in a report on Friday, May 1st. Citigroup cut their target price on shares of Sandisk from $2,500.00 to $2,100.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Evercore reissued an “outperform” rating on shares of Sandisk in a report on Thursday, August 13th. Susquehanna decreased their price target on shares of Sandisk from $3,250.00 to $3,050.00 and set a “positive” rating on the stock in a research report on Thursday, July 23rd. Finally, JPMorgan Chase & Co. began coverage on shares of Sandisk in a report on Friday, August 14th. They set an “overweight” rating and a $2,250.00 price objective on the stock. Three analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average target price of $1,999.27.

Sandisk Stock Performance

The firm has a 50 day moving average price of $1,670.35 and a two-hundred day moving average price of $1,203.01. The company has a market capitalization of $232.33 billion, a P/E ratio of 21.52, a price-to-earnings-growth ratio of 0.16 and a beta of 5.21.

Sandisk (NASDAQ:SNDK) last issued its quarterly earnings data 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. The company had revenue of $8.96 billion during the quarter. Sandisk had a return on equity of 87.84% and a net margin of 56.47%.The firm’s revenue was up 371.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.29 earnings per share. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, equities analysts expect that Sandisk Corporation will post 208.92 earnings per share for the current 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 shares. This repurchase authorization permits the data storage provider to buy up to 6.6% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

Insider Transactions at Sandisk

In other news, 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 value of $697,296.00. Following the sale, the insider directly owned 30,915 shares in the company, valued at $35,928,176.40. The trade was a 1.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, 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 2,000 shares of Sandisk stock in a transaction on Monday, June 1st. The shares were sold at an average price of $1,756.58, for a total transaction of $3,513,160.00. Following the completion of the sale, the executive vice president owned 52,677 shares in the company, valued at $92,531,364.66. The trade was a 3.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 3,800 shares of company stock valued at $6,504,856. Corporate insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Sandisk

Several hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of Sandisk in the second quarter valued at $23,408,732,000. State Street Corp acquired a new stake in shares of Sandisk during the 3rd quarter worth about $491,053,000. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Sandisk during the 3rd quarter worth about $297,293,000. Norges Bank bought a new stake in shares of Sandisk during the 4th quarter worth about $518,889,000. Finally, Bank of America Corp DE bought a new stake in shares of Sandisk during the 3rd quarter worth about $190,425,000.

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.