Sandisk (NASDAQ:SNDK) Shares Down 4.1% - Should You Sell?

Key Points

• Sandisk shares fell 4.1% on Friday, despite heavy trading volume and a year-to-date surge that has made the stock more volatile and valuation-sensitive.
• Recent commentary remains mixed but generally positive: hedge fund billionaire David Tepper reportedly bought 281,250 shares, while analysts continue to highlight AI-driven NAND demand, enterprise SSD growth, and stronger long-term earnings prospects.
• Wall Street is still broadly bullish after Sandisk’s blockbuster earnings, with the company reporting 251% year-over-year revenue growth and beating estimates sharply, though some commentators now view the stock as more of a hold after its massive rally.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report) shares fell 4.1% during trading on Friday . The company traded as low as $1,473.52 and last traded at $1,478.69. 9,535,936 shares traded hands during trading, a decline of 47% from the average session volume of 18,045,246 shares. The stock had previously closed at $1,542.24.

Key Headlines Impacting Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Hedge fund billionaire David Tepper reportedly bought 281,250 shares of Sandisk, adding to bullish investor sentiment and reinforcing the idea that large investors still see upside after the stock’s huge run. Article Title
• Positive Sentiment: Several recent pieces argue that Sandisk is benefiting from AI-driven NAND demand, enterprise SSD growth, and an improved long-term earnings outlook, with some analysts calling the stock undervalued despite the sharp rally. Article Title
• Positive Sentiment: SanDisk also got a boost from sector momentum as memory stocks rebounded, with traders pointing to AI-related demand and tighter supply conditions among rivals as reasons for the renewed interest. Article Title
• Neutral Sentiment: Some market commentary now frames Sandisk as a “hold” after its explosive year-to-date surge, suggesting the business outlook is strong but the valuation has become much less attractive for new buyers. Article Title
• Negative Sentiment: Jim Cramer’s cautious comments that investors should “let it come down more” may temper enthusiasm, especially after the stock’s massive rally and elevated valuation. Article Title

Wall Street Analyst Weigh In

A number of brokerages have commented on SNDK. Bank of America lifted their price target on Sandisk from $900.00 to $1,080.00 and gave the stock a "buy" rating in a research report on Friday, April 17th. Zacks Research raised Sandisk from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 20th. Wedbush lifted their price target on Sandisk from $740.00 to $1,200.00 and gave the stock an "outperform" rating in a research report on Wednesday, April 29th. Wells Fargo & Company lifted their price target on Sandisk from $975.00 to $1,250.00 and gave the stock an "equal weight" rating in a research report on Friday, May 1st. Finally, Evercore reiterated an "outperform" rating and set a $1,400.00 price objective on shares of Sandisk in a research note on Friday, May 1st. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $1,157.14.

Sandisk Stock Performance

The stock has a 50 day simple moving average of $966.13 and a two-hundred day simple moving average of $590.05. The firm has a market cap of $218.98 billion, a PE ratio of 51.40 and a beta of 4.82.

Sandisk (NASDAQ:SNDK - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The data storage provider reported $23.41 earnings per share for the quarter, beating the consensus estimate of $14.17 by $9.24. Sandisk had a return on equity of 44.06% and a net margin of 34.19%.The firm had revenue of $5.95 billion during the quarter. During the same quarter in the prior year, the firm earned ($0.30) EPS. Sandisk's revenue for the quarter was up 251.0% on a year-over-year basis. Sandisk has set its Q4 2026 guidance at 30.000-33.000 EPS. Equities research analysts forecast that Sandisk Corporation will post 63.58 earnings per share for the current year.

Insider Activity at Sandisk

In related news, CAO Michael Pokorny sold 2,446 shares of Sandisk stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $1,426.18, for a total value of $3,488,436.28. Following the completion of the transaction, the chief accounting officer owned 22,375 shares in the company, valued at $31,910,777.50. The trade was a 9.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Miyuki Suzuki sold 3,500 shares of Sandisk stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $627.53, for a total value of $2,196,355.00. Following the completion of the transaction, the director owned 9,907 shares of the company's stock, valued at approximately $6,216,939.71. This represents a 26.11% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 6,525 shares of company stock worth $6,555,092 in the last 90 days. Corporate insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On Sandisk

Several institutional investors and hedge funds have recently modified their holdings of SNDK. Osaic Holdings Inc. purchased a new stake in Sandisk during the 2nd quarter worth approximately $317,000. Merit Financial Group LLC purchased a new stake in Sandisk during the 3rd quarter worth approximately $408,000. SG Americas Securities LLC purchased a new stake in Sandisk during the 3rd quarter worth approximately $722,000. Sequoia Financial Advisors LLC purchased a new stake in Sandisk during the 3rd quarter worth approximately $360,000. Finally, Amalgamated Bank purchased a new stake in Sandisk during the 3rd quarter worth approximately $4,718,000.

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.

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