Sandisk (NASDAQ:SNDK) Shares Up 11.6% - Here's Why

Key Points

• Shares jumped 11.6% intraday to about $588.73 on Monday, with ~20.87 million shares trading (roughly 6% above the average session volume).
• Sandisk posted a sizeable quarterly beat — EPS $6.20 vs. $3.31 est. and revenue of $3.03 billion (up 61.2% year-over-year), driving the upside despite a negative net margin.
• Analyst views are polarized but the consensus is a “Moderate Buy” with a consensus target of $542.85, while individual price targets range from about $235 to $1,000 (e.g., Cantor Fitzgerald $800, UBS $1,000).

Sandisk Corporation (NASDAQ:SNDK - Get Free Report) shares shot up 11.6% during mid-day trading on Monday . The stock traded as high as $589.51 and last traded at $588.73. 20,868,148 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 19,715,295 shares. The stock had previously closed at $527.33.

Analyst Upgrades and Downgrades

SNDK has been the topic of several research reports. Wells Fargo & Company lifted their price target on shares of Sandisk from $230.00 to $380.00 and gave the stock an "equal weight" rating in a research note on Thursday, January 15th. UBS Group set a $1,000.00 target price on shares of Sandisk in a research report on Monday, February 2nd. Weiss Ratings reissued a "sell (d+)" rating on shares of Sandisk in a research note on Monday, December 29th. JPMorgan Chase & Co. assumed coverage on shares of Sandisk in a research report on Monday, December 8th. They set a "neutral" rating and a $235.00 price target for the company. Finally, Cantor Fitzgerald lifted their price objective on Sandisk from $550.00 to $800.00 and gave the stock an "overweight" rating in a report on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $542.85.

Sandisk Trading Up 11.6%

The firm's 50 day moving average is $502.89 and its 200 day moving average is $280.65. The company has a debt-to-equity ratio of 0.06, a current ratio of 3.11 and a quick ratio of 1.92. The company has a market capitalization of $86.90 billion and a PE ratio of -77.57.

Sandisk (NASDAQ:SNDK - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The data storage provider reported $6.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.31 by $2.89. Sandisk had a negative net margin of 11.66% and a positive return on equity of 10.11%. The business had revenue of $3.03 billion for the quarter, compared to analyst estimates of $2.67 billion. The company's revenue for the quarter was up 61.2% on a year-over-year basis.

Insider Activity

In related news, Director Miyuki Suzuki sold 3,500 shares of the firm's stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $627.53, for a total value of $2,196,355.00. Following the sale, the director directly owned 9,907 shares of the company's stock, valued at $6,216,939.71. This trade represents a 26.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.21% of the stock is owned by insiders.

Institutional Investors Weigh In On Sandisk

Several institutional investors and hedge funds have recently bought and sold shares of SNDK. Vanguard Personalized Indexing Management LLC purchased a new position in Sandisk during the 3rd quarter valued at $1,136,000. New York State Teachers Retirement System bought a new stake in shares of Sandisk during the 3rd quarter valued at about $13,546,000. Sage Rhino Capital LLC purchased a new position in shares of Sandisk during the third quarter valued at about $587,000. Y Intercept Hong Kong Ltd bought a new position in Sandisk in the third quarter worth about $7,046,000. Finally, Sumitomo Mitsui Trust Group Inc. purchased a new stake in Sandisk in the third quarter worth about $514,000.

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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