Sandisk (NASDAQ:SNDK) Trading 9.9% Higher - Time to Buy?

Key Points

• Sandisk jumped 9.9% on Wednesday to about $780.90 (from a $710.80 close), with ~16.8 million shares trading — slightly below its average session volume.
• Several analysts sharply raised targets and ratings recently, including Goldman Sachs ($700, buy), Barclays ($750, equal weight), KGI (initiated outperform at $992) and Bank of America ($900, buy), while the MarketBeat average target is $594.48 and consensus is a Moderate Buy.
• Sandisk reported a strong quarter — EPS $6.20 vs. $3.31 expected and revenue $3.03B vs. $2.67B expected (revenue +61.2% YoY) — but the company still shows a negative net margin and a negative PE.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report)'s share price traded up 9.9% on Wednesday . The company traded as high as $807.99 and last traded at $780.90. 16,761,414 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 19,358,418 shares. The stock had previously closed at $710.80.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. The Goldman Sachs Group raised their price target on Sandisk from $320.00 to $700.00 and gave the company a "buy" rating in a research note on Friday, January 30th. Barclays raised their price target on Sandisk from $385.00 to $750.00 and gave the company an "equal weight" rating in a research note on Monday, February 2nd. KGI Securities assumed coverage on Sandisk in a research note on Wednesday, March 18th. They issued an "outperform" rating and a $992.00 price target on the stock. Morgan Stanley set a $690.00 price target on Sandisk in a research note on Friday, January 30th. Finally, Bank of America raised their price objective on Sandisk from $850.00 to $900.00 and gave the stock a "buy" rating in a report on Monday, March 23rd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $594.48.

Sandisk Stock Performance

The firm has a fifty day simple moving average of $635.53 and a 200-day simple moving average of $375.11. The company has a market cap of $115.26 billion, a PE ratio of -102.89 and a beta of 5.04. The company has a quick ratio of 1.92, a current ratio of 3.11 and a debt-to-equity ratio of 0.06.

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

Insider Transactions at Sandisk

In related news, Director Miyuki Suzuki sold 3,500 shares of the business'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 transaction, the director owned 9,907 shares in the company, valued at $6,216,939.71. The trade was a 26.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.21% of the stock is owned by company insiders.

Hedge Funds Weigh In On Sandisk

Several institutional investors have recently added to or reduced their stakes in SNDK. Whittier Trust Co. acquired a new position in Sandisk in the 4th quarter valued at about $26,000. Greenline Wealth Management LLC acquired a new position in Sandisk in the 4th quarter valued at about $26,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Sandisk in the 3rd quarter valued at about $27,000. Chung Wu Investment Group LLC acquired a new position in Sandisk in the 4th quarter valued at about $27,000. Finally, CVA Family Office LLC acquired a new position in Sandisk in the 3rd quarter valued at about $28,000.

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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