Sandisk (NASDAQ:SNDK) Shares Down 5.3% - Should You Sell?

Key Points

• SanDisk shares fell 5.3% to about $1,403 amid broader pressure on memory and AI semiconductor stocks, driven by hotter U.S. inflation, AI-funding concerns and increasing competition from China’s CXMT.
• The company retains significant bullish support: analysts maintain a “Moderate Buy” consensus with an average price target of $2,120.65, while SanDisk cited strong AI-related demand, robust NAND pricing and received an S&P Global credit upgrade to BBB.
• SanDisk recently exceeded quarterly earnings expectations, reported 371.6% year-over-year revenue growth and authorized a $14 billion stock-repurchase program, though recent CEO and CFO share sales add a cautionary consideration for investors.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report) shares were down 5.3% during mid-day trading on Wednesday. The company traded as low as $1,402.02 and last traded at $1,403.34. Approximately 7,131,299 shares changed hands during trading, a decline of 53% from the average daily volume of 15,127,384 shares. The stock had previously closed at $1,482.33.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: SanDisk entered a data-storage partnership with Meta Platforms to support Meta’s VR Glasses, potentially creating a new demand channel for its storage products. SanDisk Stock Drops Despite Meta Partnership
• Positive Sentiment: Analysts and investment commentators continue to identify SNDK as a buy-the-dip opportunity, citing strong AI-related memory demand, long-term industry growth and potentially attractive forward valuation. One bullish forecast places the stock at $3,000 over the next two years. AI Memory Chip Selloff Looks Overblown
• Positive Sentiment: S&P Global upgraded SanDisk’s credit rating to BBB from BB+, reflecting stronger cash flows and rising AI-driven demand. The company’s contractual commitments and robust NAND pricing are also cited as support for its cash-generation outlook. SanDisk Credit Rating Upgrade
• Neutral Sentiment: Hotter-than-expected U.S. inflation has pressured technology valuations by increasing concerns that interest rates could remain elevated. A mixed report from chip-equipment maker ASML also failed to provide a broad boost to memory shares. Why Memory Stocks Are Falling
• Negative Sentiment: Chinese memory manufacturer CXMT’s advances and plans to target high-end server memory have intensified fears that future competition could pressure SanDisk’s pricing, margins and market share. The concern has triggered a broader selloff across memory stocks. CXMT Targets Server Memory
• Negative Sentiment: Investors are also reducing exposure to AI-related semiconductor stocks amid worries about AI funding, sector valuations and whether elevated memory earnings can persist through the cycle. Chip Stocks Face AI Funding and China Concerns

Wall Street Analysts Forecast Growth

SNDK has been the subject of several research reports. Sanford C. Bernstein restated an "outperform" rating and set a $3,000.00 price objective (up from $1,700.00) on shares of Sandisk in a research report on Thursday, August 6th. Argus raised Sandisk from a "hold" rating to a "buy" rating and set a $1,600.00 price target for the company in a report on Monday, August 10th. Evercore restated an "outperform" rating and issued a $3,100.00 price objective (up from $1,400.00) on shares of Sandisk in a research report on Thursday, August 13th. Arete Research lifted their price objective on Sandisk from $2,300.00 to $3,000.00 and gave the stock a "buy" rating in a research report on Thursday, August 27th. Finally, Citigroup restated a "buy" rating on shares of Sandisk in a report on Thursday, October 1st. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, Sandisk currently has a consensus rating of "Moderate Buy" and an average target price of $2,120.65.

Sandisk Price Performance

The company's 50-day moving average is $1,598.08 and its 200-day moving average is $1,487.22. The firm has a market capitalization of $202.82 billion, a price-to-earnings ratio of 19.25, a PEG ratio of 0.15 and a beta of 5.23.

Sandisk (NASDAQ:SNDK - Get Free Report) last posted its quarterly 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 company 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 revenue for the quarter was up 371.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Sell-side analysts anticipate that Sandisk Corporation will post 208.94 earnings per share for the current year.

Sandisk declared that its Board of Directors has authorized a stock repurchase program on Wednesday, August 5th that permits the company to buy back $14.00 billion in shares. This repurchase authorization permits the data storage provider to purchase up to 6.6% of its stock through open market purchases. Share repurchase programs are often an indication that the company's board believes its shares are undervalued.

Insider Transactions at Sandisk

In other news, CFO Luis Visoso sold 1,000 shares of Sandisk stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $1,568.83, for a total value of $1,568,830.00. Following the transaction, the chief financial officer directly owned 130,976 shares of the company's stock, valued at $205,479,078.08. The trade was a 0.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Goeckeler sold 33,841 shares of the business's stock in a transaction dated Thursday, September 17th. The stock was 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 owned 382,865 shares of the company's stock, valued at $602,709,911.65. The trade was a 8.12% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 77,899 shares of company stock worth $121,159,122 over the last ninety days. 0.29% of the stock is owned by insiders.

Hedge Funds Weigh In On Sandisk

Hedge funds and other institutional investors have recently made changes to their positions in the business. N10 Wealth LLC lifted its stake in shares of Sandisk by 31.1% during the third quarter. N10 Wealth LLC now owns 6,912 shares of the data storage provider's stock worth $12,026,000 after purchasing an additional 1,641 shares in the last quarter. N10 Assets LLC grew its position in Sandisk by 25.3% in the third quarter. N10 Assets LLC now owns 6,514 shares of the data storage provider's stock valued at $11,334,000 after acquiring an additional 1,315 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. raised its stake in shares of Sandisk by 12.9% during the third quarter. Thurston Springer Miller Herd & Titak Inc. now owns 79 shares of the data storage provider's stock valued at $137,000 after purchasing an additional 9 shares during the period. First Citizens Bank & Trust Co. raised its stake in shares of Sandisk by 1,509.6% during the third quarter. First Citizens Bank & Trust Co. now owns 5,038 shares of the data storage provider's stock valued at $8,766,000 after purchasing an additional 4,725 shares during the period. Finally, Focus Financial Network Inc. lifted its position in shares of Sandisk by 42.4% during the third quarter. Focus Financial Network Inc. now owns 27,785 shares of the data storage provider's stock worth $48,343,000 after purchasing an additional 8,277 shares in the last quarter.

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.

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