Sandisk Corporation $SNDK Stock Bought by Sumitomo Mitsui DS Asset Management Company Ltd

Key Points

• Sumitomo Mitsui DS Asset Management increased its Sandisk stake by 160.7% in the third quarter, purchasing 18,517 additional shares for a total holding valued at approximately $52.3 million.
• Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $2,120.65. Sandisk also exceeded quarterly earnings expectations, reported 371.6% year-over-year revenue growth, and authorized a $14 billion share-buyback program.
• Despite strong performance, the stock remains highly volatile and exposed to falling memory prices, potential Chinese competition, and shifting AI-investment sentiment; insiders have also sold roughly $121.2 million of shares over the past 90 days.

Sumitomo Mitsui DS Asset Management Company Ltd increased its holdings in Sandisk Corporation (NASDAQ:SNDK - Free Report) by 160.7% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 30,039 shares of the data storage provider's stock after buying an additional 18,517 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in Sandisk were worth $52,265,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also added to or reduced their stakes in SNDK. Handelsbanken Fonder AB boosted its position in shares of Sandisk by 35.1% during the 2nd quarter. Handelsbanken Fonder AB now owns 57,564 shares of the data storage provider's stock worth $130,885,000 after acquiring an additional 14,964 shares in the last quarter. Focus Partners Advisor Solutions LLC acquired a new position in Sandisk during the second quarter valued at approximately $4,775,000. Florida Financial Advisors LLC acquired a new position in Sandisk during the first quarter valued at approximately $2,747,000. UNICOM Systems Inc. raised its position in Sandisk by 14.9% during the second quarter. UNICOM Systems Inc. now owns 58,500 shares of the data storage provider's stock valued at $133,013,000 after purchasing an additional 7,600 shares in the last quarter. Finally, Affinity Capital Advisors LLC bought a new stake in Sandisk during the second quarter worth $2,506,000.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. JPMorgan Chase & Co. assumed coverage on Sandisk in a report on Friday, August 14th. They issued an "overweight" rating and a $2,250.00 target price on the stock. BNP Paribas Exane dropped their price objective on Sandisk from $1,900.00 to $1,400.00 in a research report on Thursday, August 6th. Evercore reaffirmed an "outperform" rating and issued a $3,100.00 price objective (up from $1,400.00) on shares of Sandisk in a research note on Thursday, August 13th. The Goldman Sachs Group reiterated a "buy" rating and issued a $2,200.00 target price (up from $1,200.00) on shares of Sandisk in a research report on Thursday, August 13th. Finally, 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 report on Thursday, August 6th. Three analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $2,120.65.

Sandisk Price Performance

Shares of Sandisk stock opened at $1,371.12 on Tuesday. Sandisk Corporation has a fifty-two week low of $142.76 and a fifty-two week high of $2,354.39. The firm has a market capitalization of $198.17 billion, a P/E ratio of 18.81, a P/E/G ratio of 0.13 and a beta of 5.23. The company's 50 day moving average price is $1,606.27 and its two-hundred day moving average price is $1,508.64.

Sandisk (NASDAQ:SNDK - Get Free Report) last posted 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 firm had revenue of $8.96 billion for the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. The business's quarterly revenue was up 371.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, analysts expect that Sandisk Corporation will post 208.94 earnings per share for the current year.

Sandisk announced that its board has authorized a stock buyback program on Wednesday, August 5th that permits the company to buy back $14.00 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 often an indication that the company's board believes its stock is undervalued.

Key Stories Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk shares rebounded alongside other semiconductor stocks as investors bought technology stocks following the prior week’s steep sell-off. Oversold technical conditions, upward earnings-estimate revisions and a Zacks upgrade to Strong Buy supported the recovery. SanDisk upgraded to Strong Buy
• Positive Sentiment: Investors also responded favorably to reports that major industry participants will adopt Nvidia’s NVHBM technology, potentially standardizing high-bandwidth-memory connections and supporting long-term AI infrastructure demand. Why SanDisk stock rose
• Neutral Sentiment: Recent commentary highlights SanDisk’s strong cash generation and apparently low forward valuation, but warns that the valuation depends on unusually strong memory economics continuing. The company’s recent profit surge was driven substantially by higher prices, making future earnings sensitive to any deterioration in pricing. SanDisk cash generation and valuation
• Negative Sentiment: The latest decline follows renewed concern about China’s CXMT reportedly achieving a memory-chip technology breakthrough. Traders fear increased Chinese supply could trigger a price war, particularly damaging SanDisk because its earnings growth has benefited from higher memory prices. Why AI memory stocks are falling
• Negative Sentiment: More broadly, investors are reassessing aggressive AI-stock valuations and spending expectations after last week’s semiconductor rout. SanDisk’s exceptionally high volatility and recent gains leave it particularly exposed to profit-taking and changes in sentiment.

Insider Transactions at Sandisk

In related news, CEO David Goeckeler sold 33,841 shares of the firm's stock in a transaction 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 sale, the chief executive officer owned 382,865 shares of the company's stock, valued at $602,709,911.65. This trade represents a 8.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 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 sale, the executive vice president owned 44,134 shares in the company, valued at $67,991,957.72. This 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 90 days, insiders sold 77,899 shares of company stock worth $121,159,122. Insiders own 0.29% of the company's stock.

Sandisk 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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