Susquehanna Has Lowered Expectations for Sandisk (NASDAQ:SNDK) Stock Price

Key Points

• Susquehanna lowered Sandisk’s price target from $2,745 to $2,720 while maintaining a positive rating, implying approximately 104.5% upside from the reported $1,330.05 share price.
• Wall Street sentiment remains favorable: Sandisk has a consensus “Moderate Buy” rating and an average price target of $2,073.54, supported by multiple Buy and Strong Buy recommendations.
• Sandisk recently beat quarterly earnings expectations with $49.51 EPS and $11.03 billion in revenue, while its board authorized a $14 billion share buyback covering up to 6.6% of outstanding shares.

Sandisk (NASDAQ:SNDK - Get Free Report) had its price objective reduced by equities researchers at Susquehanna from $2,745.00 to $2,720.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a "positive" rating on the data storage provider's stock. Susquehanna's target price indicates a potential upside of 104.50% from the stock's current price.

A number of other analysts also recently issued reports on SNDK. New Street Research set a $3,000.00 price objective on shares of Sandisk in a report on Thursday, August 6th. Bank of America restated a "buy" rating and set a $2,000.00 price target on shares of Sandisk in a research report on Friday. Wedbush reaffirmed an "outperform" rating and set a $2,000.00 price target on shares of Sandisk in a research note on Friday, August 14th. Royal Bank Of Canada upped their price objective on Sandisk from $1,300.00 to $1,600.00 and gave the stock a "sector perform" rating in a report on Friday, August 14th. Finally, Argus upgraded Sandisk from a "hold" rating to a "buy" rating and set a $1,600.00 price objective on the stock in a research report on Monday, August 10th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Sandisk has an average rating of "Moderate Buy" and a consensus target price of $2,073.54.

Sandisk Price Performance

Shares of SNDK stock opened at $1,330.05 on Friday. The stock has a market capitalization of $192.23 billion, a price-to-earnings ratio of 18.24, a PEG ratio of 0.14 and a beta of 5.23. The company's fifty day simple moving average is $1,566.91 and its two-hundred day simple moving average is $1,247.03. Sandisk has a 1 year low of $183.00 and a 1 year high of $2,354.39.

Sandisk (NASDAQ:SNDK - Get Free Report) last announced its quarterly earnings results 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. Sandisk had a return on equity of 87.84% and a net margin of 56.47%. The firm had revenue of $11.03 billion for the quarter. During the same quarter in the prior year, the company earned $1.22 earnings per share. The company's quarterly revenue was up 23.0% on a year-over-year basis. Equities research analysts anticipate that Sandisk will post 210.92 EPS for the current year.

Sandisk declared that its board has initiated a stock buyback plan on Wednesday, August 5th that allows the company to repurchase $14 billion in shares. This buyback authorization allows the data storage provider to purchase up to 6.6% of its shares through open market purchases. Stock buyback plans are generally a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Luis Visoso sold 1,000 shares of the company's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $1,568.83, for a total transaction of $1,568,830.00. Following the completion of the sale, the chief financial officer owned 130,976 shares in the company, valued at approximately $205,479,078.08. This represents a 0.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Goeckeler sold 33,841 shares of the stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $1,574.21, for a total transaction of $53,272,840.61. Following the completion of the transaction, the chief executive officer owned 382,865 shares in the company, valued at $602,709,911.65. This trade represents a 8.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 77,899 shares of company stock valued at $121,159,122 over the last ninety days. Insiders own 0.29% of the company's stock.

Hedge Funds Weigh In On Sandisk

Several institutional investors have recently bought and sold shares of SNDK. BlackRock Inc. purchased a new position in Sandisk during the second quarter valued at approximately $23,408,732,000. Situational Awareness LP lifted its holdings in Sandisk by 42.4% during the second quarter. Situational Awareness LP now owns 2,495,344 shares of the data storage provider's stock worth $5,673,739,000 after buying an additional 743,325 shares during the period. Bank of New York Mellon Corp bought a new stake in Sandisk during the 2nd quarter valued at $1,621,353,000. Bank of America Corp DE bought a new stake in Sandisk during the 2nd quarter valued at $1,564,901,000. Finally, Assenagon Asset Management S.A. bought a new stake in Sandisk during the 2nd quarter valued at $1,413,917,000.

More Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Strong results and outlook: Sandisk reported $11.03 billion in quarterly revenue, up 378% year over year, and $49.51 in EPS, exceeding estimates. Fiscal second-quarter revenue guidance of $12.2 billion to $12.6 billion also came in strongly, supported by AI-related data-center demand. Sandisk earnings report
• Positive Sentiment: Demand visibility is improving: Management said customers are securing memory supply through the end of the decade, while data-center revenue increased 61% sequentially. Long-term contracts and approximately $89 billion in remaining performance obligations could provide greater revenue visibility. Sandisk CEO discusses customer demand
• Positive Sentiment: Share split announced: Sandisk’s board approved an eight-for-one forward stock split, effective November 19. The move may improve trading accessibility, although it does not change the company’s fundamental value. Sandisk earnings and stock split

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.

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