Sandisk (NASDAQ:SNDK) Trading 7.4% Higher – Still a Buy?

Sandisk Corporation (NASDAQ:SNDK)’s stock price was up 7.4% during trading on Friday . The company traded as high as $1,667.19 and last traded at $1,641.11. 20,302,619 shares traded hands during trading, an increase of 23% from the average session volume of 16,480,279 shares. The stock had previously closed at $1,528.11.

Trending Headlines about Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Stronger long-term outlook: Sandisk presented a financial model targeting approximately 80% gross margins, 75% operating margins, 50% free-cash-flow margins and mid-to-high-teens revenue growth through the latter part of the decade. Management also highlighted long-term customer agreements intended to reduce NAND’s traditional boom-bust cycle. Sandisk May Have Broken Memory’s Boom-Bust Cycle
• Positive Sentiment: Wall Street upgrades and targets: JPMorgan began coverage with an Overweight rating and a $2,250 price target, citing AI-driven storage demand and potential multiyear earnings growth. Wedbush reaffirmed Outperform with a $2,000 target, while Evercore ISI maintained a Buy rating and $2,800 target. JPMorgan Says There Are More Gains Ahead
• Positive Sentiment: AI demand and estimates: Analysts are raising earnings estimates as data-center and AI workloads increase demand for high-capacity flash storage. Recent quarterly results also substantially exceeded expectations, reinforcing the bullish earnings narrative. Earnings Estimates Moving Higher for Sandisk
• Neutral Sentiment: Heavy trading reflects elevated interest: The AI narrative has fueled unusually strong activity in the leveraged SNXX ETF, which exceeded 135 million shares in volume. This may amplify short-term momentum but does not directly change Sandisk’s fundamentals. Sandisk Stock Surges on AI Storage Boom
• Negative Sentiment: Execution and cycle risks remain: Skeptics question whether exceptionally high margins can persist. Potential NAND oversupply, aggressive Chinese competition from Yangtze Memory and additional industry capacity expected from 2028 could pressure pricing. Sandisk also lacks DRAM or HBM businesses to offset weakness in NAND. Sandisk Margin and Cycle Risks

Analysts Set New Price Targets

Several research firms have recently issued reports on SNDK. Susquehanna cut their price objective on shares of Sandisk from $3,250.00 to $3,050.00 and set a “positive” rating on the stock in a report on Thursday, July 23rd. Evercore reiterated an “outperform” rating on shares of Sandisk in a research note on Thursday. Morgan Stanley boosted their target price on shares of Sandisk from $1,100.00 to $1,750.00 and gave the stock an “overweight” rating in a research report on Wednesday, June 3rd. Raymond James Financial restated an “outperform” rating and set a $1,470.00 price target on shares of Sandisk in a research note on Friday, May 1st. Finally, JPMorgan Chase & Co. initiated coverage on shares of Sandisk in a report on Friday. They issued an “overweight” rating and a $2,250.00 price target for the company. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Buy” and an average price target of $1,999.27.

Sandisk Stock Up 7.4%

The stock has a 50-day moving average of $1,666.23 and a 200 day moving average of $1,177.84. The stock has a market cap of $243.03 billion, a PE ratio of 22.51, a price-to-earnings-growth ratio of 0.13 and a beta of 5.20.

Sandisk (NASDAQ:SNDK) last issued its quarterly earnings results 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 company had revenue of $8.96 billion for the quarter. During the same quarter last year, the company posted $0.29 EPS. Sandisk’s quarterly 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, equities analysts anticipate that Sandisk Corporation will post 208.92 EPS for the current year.

Sandisk announced that its board has authorized a share buyback program on Wednesday, August 5th that allows the company to repurchase $14.00 billion in outstanding shares. This repurchase authorization allows the data storage provider to reacquire up to 6.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Sandisk

In related news, insider Bernard Shek sold 600 shares of the business’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $1,162.16, for a total transaction of $697,296.00. Following the completion of the transaction, 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 2,000 shares of the company’s 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 directly owned 52,677 shares in the company, valued at approximately $92,531,364.66. The trade was 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 have sold 3,800 shares of company stock valued at $6,504,856. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in Sandisk in the second quarter valued at approximately $23,408,732,000. State Street Corp increased its holdings in shares of Sandisk by 20.7% during the 4th quarter. State Street Corp now owns 5,281,522 shares of the data storage provider’s stock valued at $1,253,728,000 after purchasing an additional 904,933 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Sandisk by 44.9% in the 4th quarter. Geode Capital Management LLC now owns 3,655,860 shares of the data storage provider’s stock valued at $866,310,000 after purchasing an additional 1,133,276 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in shares of Sandisk by 31.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,478,002 shares of the data storage provider’s stock valued at $825,608,000 after purchasing an additional 828,332 shares during the period. Finally, Morgan Stanley boosted its holdings in Sandisk by 7.2% during the fourth quarter. Morgan Stanley now owns 2,970,361 shares of the data storage provider’s stock worth $705,105,000 after buying an additional 199,545 shares in the last quarter.

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.