Sandisk Corporation $SNDK Stock Holdings Boosted by Kercheville Advisors LLC

Key Points

• Kercheville Advisors increased its Sandisk stake by 301% in the third quarter, ending with 1,965 shares valued at approximately $3.4 million. Several other institutional investors also initiated or expanded positions.
• Sandisk reported quarterly EPS of $39.25, beating estimates of $33.28, while revenue surged 371.6% year over year to $8.96 billion. The company also authorized a $14 billion stock buyback, covering up to 6.6% of outstanding shares.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $2,120.65, but investors face risks from memory-price cyclicality, potential increases in Chinese NAND supply, and the stock’s recent volatility.

Kercheville Advisors LLC raised its stake in shares of Sandisk Corporation (NASDAQ:SNDK - Free Report) by 301.0% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,965 shares of the data storage provider's stock after purchasing an additional 1,475 shares during the period. Kercheville Advisors LLC's holdings in Sandisk were worth $3,419,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Valley Wealth Managers Inc. purchased a new stake in shares of Sandisk during the first quarter worth about $25,000. Atomic Invest LLC purchased a new position in Sandisk in the 2nd quarter valued at about $25,000. IMG Wealth Management Inc. purchased a new position in Sandisk in the 1st quarter valued at about $29,000. Dunhill Financial LLC purchased a new position in Sandisk in the 2nd quarter valued at about $30,000. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new position in Sandisk in the 2nd quarter valued at about $32,000.

Sandisk Stock Performance

Shares of NASDAQ:SNDK traded up $71.82 during midday trading on Monday, hitting $1,371.12. The company's stock had a trading volume of 8,470,334 shares, compared to its average volume of 15,056,086. The company has a market cap of $198.17 billion, a P/E ratio of 18.81, a price-to-earnings-growth ratio of 0.13 and a beta of 5.23. Sandisk Corporation has a 12-month low of $142.76 and a 12-month high of $2,354.39. The business's 50 day simple moving average is $1,606.27 and its 200 day simple moving average is $1,508.64.

Sandisk (NASDAQ:SNDK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $33.28 by $5.97. The company 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%. The firm's revenue was up 371.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. On average, sell-side analysts predict that Sandisk Corporation will post 208.94 earnings per share for the current fiscal year.

Sandisk announced that its Board of Directors has initiated a stock buyback plan on Wednesday, August 5th that authorizes the company to repurchase $14.00 billion in shares. This repurchase authorization authorizes the data storage provider to buy up to 6.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's leadership believes its shares are undervalued.

More Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Memory stocks broadly recovered as fears about excessive AI spending eased. SanDisk was among the strongest performers, alongside Micron and SK Hynix, as investors bought the sector after its recent decline. Memory Stocks Rally as Tech Selloff Unwinds
• Positive Sentiment: Several reports characterized SanDisk as technically oversold after falling 27.5% over four weeks. Higher Wall Street earnings estimates and expectations for a trend reversal added to the rebound case. SanDisk Looks Ripe for a Turnaround
• Positive Sentiment: Zacks upgraded SNDK to Rank #1, or “Strong Buy,” citing improving earnings prospects. The upgrade may attract additional near-term buying interest. SanDisk Upgraded to Strong Buy
• Positive Sentiment: Investors are also focusing on Nvidia’s NVHBM technology, which could standardize high-bandwidth memory connections and support longer-term demand for memory suppliers. Why SanDisk Stock Shot Higher Today
• Neutral Sentiment: SanDisk’s strong cash generation and low forward-earnings valuation look attractive relative to some semiconductor peers, but the company’s earnings remain exposed to memory pricing and industry cyclicality.
• Negative Sentiment: China’s CXMT reported a memory-chip technology breakthrough, raising concerns that additional Chinese NAND supply could intensify competition, pressure prices and reduce SanDisk’s unusually strong recent profit margins. Micron and SanDisk Rebound While CXMT Slides
• Negative Sentiment: Analysts cautioned that recent profits were driven largely by higher memory prices, making the stock vulnerable if supply increases or the broader AI trade weakens. Investors are also watching the company’s October 29 event for further guidance.

Wall Street Analyst Weigh In

SNDK has been the topic of several research analyst reports. Sanford C. Bernstein reiterated an "outperform" rating and issued a $3,000.00 price objective (up from $1,700.00) on shares of Sandisk in a report on Thursday, August 6th. Susquehanna reduced their target price on Sandisk from $3,050.00 to $2,745.00 and set a "positive" rating for the company in a report on Thursday, August 6th. Royal Bank Of Canada raised their target price on Sandisk from $1,300.00 to $1,600.00 and gave the company a "sector perform" rating in a research report on Friday, August 14th. Arete Research raised their target price on Sandisk from $2,300.00 to $3,000.00 and gave the company a "buy" rating in a research report on Thursday, August 27th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $2,200.00 price target (up from $1,200.00) on shares of Sandisk in a research note on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, Sandisk presently has an average rating of "Moderate Buy" and a consensus target price of $2,120.65.

Insider Buying and Selling at Sandisk

In other news, EVP Alper Ilkbahar sold 4,712 shares of the business's stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $1,540.58, for a total transaction 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. The trade was a 9.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bernard Shek sold 2,308 shares of the company's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $1,767.33, for a total value of $4,078,997.64. Following the completion of the sale, the insider owned 25,305 shares of the company's stock, valued at $44,722,285.65. This trade represents a 8.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 77,899 shares of company stock valued at $121,159,122. Company 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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