Sandisk (NASDAQ:SNDK) Downgraded by Zacks Research to “Hold”

Zacks Research lowered shares of Sandisk (NASDAQ:SNDK) from a strong-buy rating to a hold rating in a research report sent to investors on Monday morning,Zacks reports.

Other research analysts have also issued reports about the company. Sanford C. Bernstein reissued an “outperform” rating on shares of Sandisk in a research report on Thursday, August 6th. Jefferies Financial Group restated a “buy” rating on shares of Sandisk in a research report on Thursday, August 6th. Melius Research set a $2,350.00 target price on Sandisk in a research note on Monday, May 18th. Morgan Stanley lifted their target price on Sandisk from $1,100.00 to $1,750.00 and gave the stock an “overweight” rating in a report on Wednesday, June 3rd. Finally, Susquehanna dropped their price target on Sandisk from $3,250.00 to $3,050.00 and set a “positive” rating on the stock in a research note on Thursday, July 23rd. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,998.14.

Sandisk Stock Performance

Shares of NASDAQ SNDK opened at $1,737.99 on Monday. The company has a market capitalization of $254.47 billion, a P/E ratio of 23.84, a price-to-earnings-growth ratio of 0.17 and a beta of 5.17. Sandisk has a 52-week low of $69.57 and a 52-week high of $2,354.39. The company’s 50 day moving average price is $1,526.40 and its 200-day moving average price is $1,305.86.

Sandisk (NASDAQ:SNDK) last announced its earnings results on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share for the quarter, topping analysts’ consensus estimates of $33.28 by $5.97. The business had revenue of $8.96 billion during the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. Sandisk’s quarterly revenue was up 371.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Analysts forecast that Sandisk will post 208.92 earnings per share for the current year.

Sandisk declared that its board has authorized a share repurchase program on Wednesday, August 5th that permits the company to buyback $14.00 billion in outstanding shares. This buyback authorization permits the data storage provider to repurchase up to 6.6% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Insider Activity at Sandisk

In related news, EVP Alper Ilkbahar sold 4,712 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $1,540.58, for a total value of $7,259,212.96. Following the transaction, the executive vice president directly owned 44,134 shares in the company, valued at $67,991,957.72. This trade represents a 9.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bernard Shek sold 2,308 shares of Sandisk stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $1,767.33, for a total transaction of $4,078,997.64. Following the completion of the sale, the insider directly owned 25,305 shares of the company’s stock, valued at approximately $44,722,285.65. The trade was a 8.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 9,220 shares of company stock worth $14,829,223. Corporate insiders own 0.21% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. WINTON GROUP Ltd lifted its stake in shares of Sandisk by 899.3% in the second quarter. WINTON GROUP Ltd now owns 6,146 shares of the data storage provider’s stock valued at $13,974,000 after buying an additional 5,531 shares in the last quarter. SVB Wealth LLC bought a new stake in shares of Sandisk during the second quarter worth about $705,000. Insight Wealth Partners LLC raised its holdings in shares of Sandisk by 0.4% in the 2nd quarter. Insight Wealth Partners LLC now owns 1,607 shares of the data storage provider’s stock worth $3,654,000 after acquiring an additional 7 shares during the last quarter. Pinnacle Wealth Management Advisory Group LLC raised its holdings in shares of Sandisk by 42.1% in the 2nd quarter. Pinnacle Wealth Management Advisory Group LLC now owns 682 shares of the data storage provider’s stock worth $1,551,000 after acquiring an additional 202 shares during the last quarter. Finally, NorthRock Partners LLC bought a new position in Sandisk in the 2nd quarter valued at about $773,000.

Key Stories Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Potential for sharply higher memory prices. Industry analysts cited in recent coverage believe memory prices could rise as much as 60% as AI data centers increase demand for storage and other memory products. Tight supply could support Sandisk’s pricing, revenue and margins. Memory prices article
• Positive Sentiment: Citi maintained its Buy rating and $2,100 price target. Analyst Asiya Merchant said AI-driven NAND demand remains supportive. The target is above Sandisk’s reported opening price of $1,737.99, suggesting continued potential upside if demand and pricing stay strong. Citi rating article
• Positive Sentiment: Recent operating momentum remains substantial. Sandisk’s latest reported quarter showed revenue growth of 371.6% year over year and earnings well above consensus. The company also authorized a $14 billion share repurchase program, potentially supporting per-share results.
• Neutral Sentiment: S&P 100 inclusion remains a potential technical catalyst. Sandisk is scheduled to join the index before trading opens September 21, which could increase institutional demand and visibility after its more than 500% 2026 advance. S&P 100 inclusion article
• Negative Sentiment: Insider selling and elevated expectations add caution. Insider Bernard Shek sold 2,308 shares for approximately $4.1 million, while EVP Alper Ilkbahar previously sold shares. Both transactions were made under pre-arranged Rule 10b5-1 plans, reducing their signaling value, but they may still encourage profit-taking concerns. Memory markets also remain cyclical, and the rally leaves SNDK exposed to a sharp reversal if NAND demand or pricing weakens. Sandisk insider sales article

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.