Sandisk (NASDAQ:SNDK) Shares Up 2.7% Following Analyst Upgrade

Key Points

• Sandisk shares rose 2.7% after Argus upgraded the stock from Hold to Buy. The broader analyst view remains bullish, with a consensus “Moderate Buy” rating and an average price target of $1,853.14.
• Sandisk reported a strong fiscal fourth quarter, posting $39.25 in EPS versus the $33.28 estimate and revenue of about $8.96 billion, up 371.6% year over year. Management guided to fiscal first-quarter 2027 EPS of $44–$46, supported by AI-related NAND demand.
• The company authorized a $14 billion share-repurchase program, while investors should weigh risks including its high valuation, beta above 5, cyclical memory pricing and uncertainty over the durability of AI-driven demand.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report)'s stock price shot up 2.7% on Tuesday after Argus upgraded the stock from a hold rating to a buy rating. The company traded as high as $1,287.04 and last traded at $1,271.05. 9,321,711 shares were traded during mid-day trading, a decline of 43% from the average session volume of 16,452,178 shares. The stock had previously closed at $1,237.92.

SNDK has been the topic of several other reports. Wedbush raised their target price on shares of Sandisk from $1,200.00 to $2,000.00 and gave the stock an "outperform" rating in a research report on Thursday, July 9th. Mizuho upped their price target on shares of Sandisk from $1,825.00 to $2,200.00 and gave the stock an "outperform" rating in a research report on Monday, June 8th. Susquehanna cut their price target on shares of Sandisk from $3,250.00 to $3,050.00 and set a "positive" rating on the stock in a research note on Thursday, July 23rd. Weiss Ratings lowered shares of Sandisk from a "buy (b-)" rating to a "hold (c+)" rating in a report on Tuesday, July 21st. Finally, Melius Research set a $2,350.00 price target on shares of Sandisk in a report on Monday, May 18th. Three analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Sandisk currently has a consensus rating of "Moderate Buy" and an average target price of $1,853.14.

Insider Activity

In other news, EVP Alper Ilkbahar sold 2,000 shares of the business's stock in a transaction dated Monday, June 1st. The stock was 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 in the company, valued at approximately $92,531,364.66. The trade was a 3.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Bernard Shek sold 600 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total transaction of $697,296.00. Following the sale, the insider directly owned 30,915 shares of the company's stock, valued at approximately $35,928,176.40. This trade represents a 1.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 3,800 shares of company stock worth $6,504,856 over the last ninety days. Corporate insiders own 0.21% of the company's stock.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk’s fiscal fourth-quarter results significantly exceeded expectations, with $39.25 in earnings per share versus a $33.28 consensus estimate and revenue of $8.97 billion, up 371.6% year over year. Management also projected fiscal first-quarter 2027 EPS of $44 to $46. Sandisk Q4 Earnings Call Centers on AI Demand and Long-Term Deals
• Positive Sentiment: Investors are emphasizing strong AI-related demand for NAND storage, hyperscaler spending, pricing power, and multiyear customer contracts. Disciplined supply growth could help support margins and reduce the typical volatility of the NAND cycle. Prediction: Sandisk Will Reclaim Its All-Time High by the End of the Year
• Positive Sentiment: Argus upgraded Sandisk from Hold to Buy, while other analyst commentary continues to describe the post-earnings weakness as a buying opportunity. Wall Street’s overall consensus remains bullish, with price targets implying additional upside. What’s Going On With Sandisk Stock Tuesday?
• Neutral Sentiment: Several articles identify Sandisk as a potential stock-split candidate because its shares have risen more than 3,000% over the past year. However, no split has been announced, and a split would not change the company’s underlying value. Sandisk Has Surged More Than 3,000% in 12 Months. Is a Stock Split Coming?
• Negative Sentiment: Risks include an exceptionally high valuation, a beta above 5, dependence on cyclical memory pricing, and uncertainty over how long AI-driven demand will remain strong. Mixed outlook commentary and profit-taking after the blowout quarter have contributed to sharp swings. The Two Primary Risks For SanDisk and What to Do Now

Hedge Funds Weigh In On Sandisk

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new stake in Sandisk in the 2nd quarter valued at $23,408,732,000. State Street Corp acquired a new position in shares of Sandisk during the third quarter worth about $491,053,000. Arrowstreet Capital Limited Partnership acquired a new position in shares of Sandisk during the third quarter worth about $297,293,000. Norges Bank purchased a new stake in shares of Sandisk in the fourth quarter worth about $518,889,000. Finally, Bank of America Corp DE purchased a new stake in shares of Sandisk in the third quarter worth about $190,425,000.

Sandisk Stock Up 2.7%

The firm has a market cap of $188.23 billion, a price-to-earnings ratio of 17.44, a price-to-earnings-growth ratio of 0.13 and a beta of 5.21. The business has a 50 day moving average price of $1,689.51 and a 200-day moving average price of $1,159.08.

Sandisk (NASDAQ:SNDK - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, topping the consensus estimate of $33.28 by $5.97. The firm had revenue of $8.96 billion for the quarter. Sandisk had a return on equity of 87.84% and a net margin of 56.47%.The business's revenue was up 371.6% on a year-over-year basis. During the same period last year, the firm posted $0.29 earnings per share. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Research analysts anticipate that Sandisk Corporation will post 187.19 earnings per share for the current fiscal year.

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

Sandisk Company 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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