Sandisk (NASDAQ:SNDK) Stock Gets Price Target Reduction from Wells Fargo & Company

Sandisk (NASDAQ:SNDK) had its target price lowered by research analysts at Wells Fargo & Company from $1,550.00 to $1,300.00 in a research report issued on Friday, Benzinga reports. The firm currently has an “equal weight” rating on the data storage provider’s stock. Wells Fargo & Company‘s target price would indicate a potential upside of 14.57% from the stock’s previous close.

A number of other analysts have also recently weighed in on the stock. Jefferies Financial Group reaffirmed a “buy” rating and set a $1,400.00 price target (up from $1,000.00) on shares of Sandisk in a research report on Thursday, August 6th. Susquehanna cut their price objective on Sandisk from $2,745.00 to $2,720.00 and set a “positive” rating on the stock in a research report on Friday. Wedbush reaffirmed an “outperform” rating and issued a $2,000.00 target price on shares of Sandisk in a research report on Friday, August 14th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $3,000.00 target price (up from $1,700.00) on shares of Sandisk in a research note on Thursday, August 6th. Finally, Evercore reiterated an “outperform” rating and set a $3,100.00 target price (up from $1,400.00) on shares of Sandisk in a report on Thursday, August 13th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Sandisk currently has a consensus rating of “Moderate Buy” and an average target price of $2,056.23.

Sandisk Price Performance

NASDAQ SNDK traded down $195.40 during mid-day trading on Friday, hitting $1,134.65. The company’s stock had a trading volume of 13,086,940 shares, compared to its average volume of 14,770,029. The firm has a market capitalization of $163.99 billion, a P/E ratio of 15.46, a price-to-earnings-growth ratio of 0.14 and a beta of 5.23. Sandisk has a 52-week low of $183.00 and a 52-week high of $2,354.39. The stock’s fifty day simple moving average is $1,566.91 and its two-hundred day simple moving average is $1,247.03.

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

Sandisk declared that its Board of Directors has approved a share repurchase program on Wednesday, August 5th that permits the company to buy back $14 billion in outstanding shares. This repurchase authorization permits the data storage provider to repurchase up to 6.6% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In related news, insider Bernard Shek sold 2,308 shares of the business’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $1,767.33, for a total value of $4,078,997.64. Following the transaction, the insider owned 25,305 shares in the company, valued at approximately $44,722,285.65. The trade was a 8.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 4,712 shares of the business’s stock in a transaction dated 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 completion of the transaction, the executive vice president owned 44,134 shares in the company, valued at approximately $67,991,957.72. This trade represents a 9.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 77,899 shares of company stock valued at $121,159,122. Corporate insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On Sandisk

A number of hedge funds have recently bought and sold shares of SNDK. Handelsbanken Fonder AB increased its stake in shares of Sandisk by 35.1% in the second quarter. Handelsbanken Fonder AB now owns 57,564 shares of the data storage provider’s stock worth $130,885,000 after buying an additional 14,964 shares during the last quarter. Focus Partners Advisor Solutions LLC bought a new position in Sandisk during the 2nd quarter valued at $4,775,000. Florida Financial Advisors LLC bought a new position in Sandisk during the 1st quarter valued at $2,747,000. UNICOM Systems Inc. grew its holdings in Sandisk by 14.9% during the 2nd quarter. UNICOM Systems Inc. now owns 58,500 shares of the data storage provider’s stock worth $133,013,000 after acquiring an additional 7,600 shares in the last quarter. Finally, Affinity Capital Advisors LLC acquired a new position in Sandisk during the 2nd quarter worth $2,506,000.

Trending Headlines about Sandisk

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.