Sandisk (NASDAQ:SNDK) Shares Up 11.5% - Here's Why

Key Points

• Sandisk shares jumped 11.5% after reports linked the move to Apple’s warning about “unavoidable” memory price increases, which is being seen as a sign of tighter supply and better pricing power for memory-chip makers.
• Investor enthusiasm is also being driven by the belief that Sandisk could benefit from AI-related storage demand, with market commentary pointing to stronger earnings growth and more upside ahead.
• Analysts remain broadly bullish: several firms have raised price targets, and the stock now carries a Moderate Buy consensus despite a recent insider sale and mixed trading activity.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report) was up 11.5% during mid-day trading on Thursday . The stock traded as high as $2,191.69 and last traded at $2,184.75. 11,998,274 shares traded hands during trading, a decline of 29% from the average daily volume of 16,925,775 shares. The stock had previously closed at $1,958.80.

Trending Headlines about Sandisk

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Apple’s warning about “unavoidable” memory price hikes is reinforcing the bullish case for Sandisk and other memory names, since tighter supply could support higher selling prices and margins. Why Is SanDisk Stock Surging On Thursday?
• Positive Sentiment: Multiple reports say Sandisk shares are benefiting from the same Apple-driven memory shortage theme, with premarket gains and renewed investor enthusiasm around AI-related storage demand. MU, SNDK, STX, WDC stocks rise after Apple chief warns of memory-driven price hikes
• Positive Sentiment: Analysts and market commentary continue to highlight Sandisk’s AI memory opportunity, suggesting the rally is being supported by expectations for strong earnings growth and more upside ahead. Wall Street Sees More Upside for SanDisk Corporation (SNDK)’s AI Opportunity

Analyst Ratings Changes

Several brokerages have recently weighed in on SNDK. Melius Research set a $2,350.00 target price on Sandisk in a report on Monday, May 18th. Sanford C. Bernstein upped their target price on Sandisk from $1,250.00 to $1,700.00 and gave the company an "outperform" rating in a report on Monday, May 4th. UBS Group set a $1,700.00 price target on Sandisk in a report on Monday, May 4th. Citigroup upped their price objective on shares of Sandisk from $1,300.00 to $2,025.00 and gave the company a "buy" rating in a report on Tuesday, May 19th. Finally, Zacks Research upgraded shares of Sandisk from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 20th. Three research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,580.67.

Sandisk Price Performance

The firm has a 50 day simple moving average of $1,366.71 and a 200-day simple moving average of $791.01. The company has a market cap of $323.54 billion, a price-to-earnings ratio of 75.94 and a beta of 4.87.

Sandisk (NASDAQ:SNDK - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The data storage provider reported $23.41 earnings per share for the quarter, topping analysts' consensus estimates of $14.17 by $9.24. The business had revenue of $5.95 billion during the quarter. Sandisk had a return on equity of 44.06% and a net margin of 34.19%.The business's revenue for the quarter was up 251.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.30) earnings per share. Sandisk has set its Q4 2026 guidance at 30.000-33.000 EPS. Research analysts anticipate that Sandisk Corporation will post 64.01 EPS for the current fiscal year.

Insider Activity at Sandisk

In related news, insider Bernard Shek sold 600 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $1,736.00, for a total transaction of $1,041,600.00. Following the completion of the transaction, the insider owned 32,232 shares of the company's stock, valued at approximately $55,954,752. This trade represents a 1.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 2,000 shares of Sandisk stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $1,756.58, for a total transaction of $3,513,160.00. Following the completion of the sale, the executive vice president owned 52,677 shares of the company's stock, valued at $92,531,364.66. This trade represents a 3.66% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 5,625 shares of company stock valued at $8,913,497. 0.21% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Osaic Holdings Inc. acquired a new stake in shares of Sandisk in the second quarter valued at $317,000. Merit Financial Group LLC purchased a new position in Sandisk during the 3rd quarter valued at about $408,000. Jones Financial Companies Lllp purchased a new position in Sandisk during the 3rd quarter valued at about $134,000. ProShare Advisors LLC acquired a new position in Sandisk in the 3rd quarter valued at about $269,000. Finally, Cibc World Market Inc. acquired a new position in Sandisk in the 3rd quarter valued at about $923,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.