Sandisk (NASDAQ:SNDK) Shares Down 5.6% – Here’s What Happened

Sandisk Corporation (NASDAQ:SNDK) traded down 5.6% during mid-day trading on Friday. The stock traded as low as $848.50 and last traded at $885.01. Approximately 12,059,129 shares traded hands during trading, a decline of 19% from the average session volume of 14,797,469 shares. The stock had previously closed at $937.46.

Trending Headlines about Sandisk

Investors following SNDK have been watching these headlines:

• Positive Sentiment: Recent results provide a strong fundamental counterpoint: Sandisk reported fiscal first-quarter sales of about $11 billion and an 85.1% non-GAAP gross margin. Its current-quarter adjusted EPS outlook is $55–$57 before the planned stock split. Why Sandisk Stock Is Falling Today
• Neutral Sentiment: Sandisk’s exposure to AI and data-center customers supports its growth case, but also leaves the stock sensitive to changes in expectations for AI infrastructure spending. What Is Going on With SanDisk Stock on Friday?
• Negative Sentiment: Reports of Nvidia CEO Jensen Huang’s resignation have unsettled the AI hardware trade, with weakness spreading to memory stocks. Because Sandisk’s business is linked to demand for AI chips and data-center storage, investors may be reassessing the durability of that growth. Why are Micron, SK Hynix, and SanDisk stocks falling on Friday?

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. JPMorgan Chase & Co. began coverage on Sandisk in a research note on Friday, August 14th. They set an “overweight” rating and a $2,250.00 target price for the company. Raymond James Financial upped their price objective on Sandisk from $1,470.00 to $2,000.00 and gave the stock an “outperform” rating in a report on Thursday, August 6th. Susquehanna dropped their price objective on Sandisk from $2,745.00 to $2,720.00 and set a “positive” rating on the stock in a report on Friday, October 30th. Cantor Fitzgerald cut their price objective on Sandisk from $2,900.00 to $2,200.00 and set an “overweight” rating for the company in a research report on Monday, October 26th. Finally, Wedbush reissued an “outperform” rating and issued a $2,000.00 target price on shares of Sandisk in a report on Friday, August 14th. One analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $2,056.23.

Sandisk Stock Performance

The stock’s 50-day moving average price is $1,454.83 and its 200-day moving average price is $1,273.54. The company has a market capitalization of $125.93 billion, a price-to-earnings ratio of 7.09, a P/E/G ratio of 0.08 and a beta of 5.66.

Sandisk shares are going to split before the market opens on Friday, November 20th. The 8-1 split was announced on Thursday, October 29th. The newly created shares will be issued to shareholders after the closing bell on Thursday, November 19th.

Sandisk (NASDAQ:SNDK) last released its quarterly earnings data on Thursday, October 29th. The data storage provider reported $49.51 earnings per share for the quarter, beating the consensus estimate of $46.19 by $3.32. The firm had revenue of $11.03 billion during the quarter. Sandisk had a return on equity of 125.70% and a net margin of 67.04%. The business’s revenue for the quarter was up 23.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.22 earnings per share. Analysts anticipate that Sandisk Corporation will post 226.01 earnings per share for the current year.

Sandisk announced that its board has approved a share buyback program on Wednesday, August 5th that permits the company to buy back $14 billion in shares. This buyback authorization permits the data storage provider to reacquire up to 6.6% of its shares through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Sandisk

In related news, CEO David Goeckeler sold 33,841 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $1,574.21, for a total value of $53,272,840.61. Following the sale, the chief executive officer directly owned 382,865 shares of the company’s stock, valued at approximately $602,709,911.65. This represents a 8.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bernard Shek sold 600 shares of the firm’s stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $1,158.26, for a total transaction of $694,956.00. Following the transaction, the insider owned 24,666 shares of the company’s stock, valued at $28,569,641.16. This trade represents a 2.37% decrease in their ownership of the stock. 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. Insiders sold a total of 77,899 shares of company stock worth $121,156,782 over the last ninety days. 0.29% of the stock is currently owned by company insiders.

Institutional Trading of Sandisk

Several institutional investors and hedge funds have recently modified their holdings of SNDK. New World Advisors LLC increased its stake in shares of Sandisk by 9.5% during the 3rd quarter. New World Advisors LLC now owns 150 shares of the data storage provider’s stock worth $261,000 after purchasing an additional 13 shares in the last quarter. US Asset Management LLC acquired a new position in shares of Sandisk during the 3rd quarter worth approximately $2,530,000. State Board of Administration of Florida Retirement System raised its position in shares of Sandisk by 15.4% during the 3rd quarter. State Board of Administration of Florida Retirement System now owns 134,320 shares of the data storage provider’s stock worth $233,702,000 after purchasing an additional 17,968 shares during the last quarter. Insigneo Advisory Services LLC lifted its stake in Sandisk by 69.9% in the 3rd quarter. Insigneo Advisory Services LLC now owns 1,402 shares of the data storage provider’s stock valued at $2,439,000 after buying an additional 577 shares in the last quarter. Finally, Southeast Asset Advisors LLC purchased a new stake in shares of Sandisk in the third quarter valued at $235,000.

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.