Sandisk (NASDAQ:SNDK) Trading Down 6.5% - Time to Sell?

Key Points

• Sandisk shares fell 6.5% to $1,493.12 amid a broader memory-stock selloff, sparked by concerns that Apple could source chips from Chinese suppliers and by weakness across semiconductor stocks.
• The company’s fundamentals remain strong: quarterly EPS of $39.25 beat estimates, revenue rose 371.6% year over year to $8.96 billion, and AI-related data-center demand plus higher NAND pricing continue to support growth.
• Analysts maintain a consensus “Buy” rating with an average price target of $1,999.27, while Sandisk’s newly authorized $14 billion share-repurchase plan could support EPS and signal management confidence; however, elevated valuation and memory-market cyclicality remain risks.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report) shares traded down 6.5% during trading on Monday . The company traded as low as $1,416.56 and last traded at $1,493.12. 13,586,036 shares were traded during mid-day trading, a decline of 17% from the average session volume of 16,410,381 shares. The stock had previously closed at $1,596.08.

Sandisk News Roundup

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: AI-driven demand remains a key support. Surging data-center revenue, multi-year contracts and improving revenue visibility have fueled optimism that Sandisk can extend its recent rally. SNDK Jumps 25% in a Month: Is there More Room for the Stock to Rise?
• Positive Sentiment: Higher NAND flash pricing has significantly benefited results: Sandisk indicated that roughly two-thirds of its latest sequential revenue growth came from pricing, while TrendForce expects prices to rise another 10% to 15% this quarter. Sandisk Rode an Estimated 70% Jump in NAND Prices
• Positive Sentiment: A newly highlighted $14 billion share-buyback authorization could support earnings per share and signal management confidence after the stock’s substantial 2026 advance. $27 Billion in Buybacks
• Neutral Sentiment: Analysts and commentators remain divided over whether the memory upcycle can last longer than historical boom-and-bust cycles. Sandisk’s strong profitability and AI exposure support the bullish case, but the stock’s large prior gains increase sensitivity to valuation and profit-taking. Why Sandisk? Cyclicality Is Not The Only Open Question
• Negative Sentiment: Memory stocks sold off broadly after reports that Washington could allow Apple to source memory chips from Chinese suppliers, raising concerns about competition and future demand for Sandisk. Memory Stocks Slide on Report Apple May Source Chinese Chips
• Negative Sentiment: Samsung’s disappointing capital-return announcement and weakness across semiconductor shares intensified sector-wide selling, while investors reduced exposure ahead of Nvidia’s earnings report. Why are Micron, SK Hynix, SanDisk stocks falling today?

Analyst Upgrades and Downgrades

SNDK has been the subject of a number of research analyst reports. Evercore restated an "outperform" rating on shares of Sandisk in a report on Thursday, August 13th. The Goldman Sachs Group reissued a "buy" rating and set a $2,200.00 price target on shares of Sandisk in a report on Thursday, August 13th. Wells Fargo & Company boosted their price target on Sandisk from $1,400.00 to $1,550.00 and gave the company an "equal weight" rating in a research note on Thursday, August 13th. Mizuho set a $1,900.00 price objective on Sandisk in a report on Friday, August 14th. Finally, JPMorgan Chase & Co. assumed coverage on Sandisk in a report on Friday, August 14th. They set an "overweight" rating and a $2,250.00 target price for the company. Three research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $1,999.27.

Sandisk Trading Down 6.5%

The company has a market cap of $218.62 billion, a P/E ratio of 20.48, a price-to-earnings-growth ratio of 0.16 and a beta of 5.20. The company has a 50 day moving average price of $1,655.56 and a 200-day moving average price of $1,224.03.

Sandisk (NASDAQ:SNDK - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 earnings per share for the quarter, beating the consensus estimate of $33.28 by $5.97. Sandisk had a return on equity of 87.84% and a net margin of 56.47%.The business had revenue of $8.96 billion for the quarter. During the same period last year, the business earned $0.29 earnings per share. The business's quarterly revenue was up 371.6% compared to the same quarter last year. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. Equities analysts expect that Sandisk Corporation will post 208.92 earnings per share for the current year.

Sandisk announced that its board has authorized a share repurchase plan on Wednesday, August 5th that authorizes the company to repurchase $14.00 billion in outstanding shares. This repurchase authorization authorizes the data storage provider to repurchase up to 6.6% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's management believes its stock is undervalued.

Insider Activity at Sandisk

In other Sandisk news, insider Bernard Shek sold 600 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $1,162.16, for a total value of $697,296.00. Following the sale, the insider owned 30,915 shares in the company, valued at $35,928,176.40. This trade represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Alper Ilkbahar sold 2,000 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $1,756.58, for a total value of $3,513,160.00. Following the completion of the transaction, the executive vice president owned 52,677 shares of the company's stock, valued at $92,531,364.66. This represents a 3.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 3,800 shares of company stock valued at $6,504,856. 0.21% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of SNDK. Osaic Holdings Inc. acquired a new position in shares of Sandisk in the second quarter worth approximately $317,000. Merit Financial Group LLC acquired a new position in shares of Sandisk in the 3rd quarter worth approximately $408,000. Dimensional Fund Advisors LP bought a new position in Sandisk during the third quarter worth $100,080,000. First Trust Advisors LP acquired a new position in Sandisk in the third quarter valued at $9,788,000. Finally, Blair William & Co. IL bought a new stake in Sandisk during the third quarter valued at $591,000.

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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