Sandisk (NASDAQ:SNDK) Trading Up 13.7% - Should You Buy?

Key Points

• Sandisk shares surged 13.7% to $1,528.11 on unusually heavy trading volume after the company issued ambitious multi-year targets tied to sustained NAND flash demand from AI data centers.
• Recent results were strong: quarterly revenue jumped 371.6% year over year to $8.96 billion, EPS exceeded estimates, and the company authorized a $14 billion share-repurchase program covering up to 6.6% of outstanding shares.
• Wall Street remains broadly bullish, with an average “Buy” rating and an average price target of $1,853.14; however, the stock’s beta of 5.20 highlights significant volatility.

Sandisk Corporation (NASDAQ:SNDK - Get Free Report) rose 13.7% on Thursday . The company traded as high as $1,580.88 and last traded at $1,528.11. 21,681,423 shares were traded during trading, an increase of 32% from the average session volume of 16,461,711 shares. The stock had previously closed at $1,344.29.

More Sandisk News

Here are the key news stories impacting Sandisk this week:

• Positive Sentiment: Sandisk unveiled ambitious multi-year financial targets, arguing that demand for NAND flash and other memory used in artificial-intelligence data centers can remain strong through the end of the decade. The outlook helped reassure investors following the stock’s recent volatility. SanDisk stock soars 15% today: here's why
• Positive Sentiment: The company’s bullish targets also lifted broader memory and semiconductor-equipment shares, reflecting expectations that AI infrastructure spending will support prolonged demand for storage capacity. Sandisk Unveils Multi-Year Financial Model and Growth Strategy
• Positive Sentiment: Evercore ISI analyst Amit Daryanani reiterated a Buy rating and maintained a $2,800 price target, citing Sandisk’s long-term growth potential and cash-return profile. Argus also recently upgraded the stock to Buy. Analyst reiterates Buy on SanDisk
• Positive Sentiment: Recent earnings momentum remains a key support: revenue rose more than 370% year over year, while exceptionally high margins and stronger data-center exposure have increased expectations for cash generation, buybacks and shareholder returns. Sandisk and Kioxia also introduced AI-oriented flash technology with a reported 33% speed improvement. SanDisk, Kioxia Unveil AI-Ready Flash Tech

Wall Street Analysts Forecast Growth

A number of brokerages have commented on SNDK. The Goldman Sachs Group reaffirmed a "buy" rating and set a $1,200.00 price target on shares of Sandisk in a research report on Friday, May 1st. Royal Bank Of Canada boosted their price objective on Sandisk from $1,000.00 to $1,300.00 and gave the company a "sector perform" rating in a research note on Thursday, August 6th. Morgan Stanley upped their target price on Sandisk from $1,100.00 to $1,750.00 and gave the company an "overweight" rating in a research report on Wednesday, June 3rd. UBS Group set a $1,700.00 target price on Sandisk in a research note on Monday, May 4th. Finally, Wells Fargo & Company reiterated a "positive" rating on shares of Sandisk in a report on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $1,853.14.

Sandisk Stock Up 13.7%

The stock has a market capitalization of $226.30 billion, a P/E ratio of 20.96, a P/E/G ratio of 0.14 and a beta of 5.20. The firm's 50 day simple moving average is $1,670.86 and its two-hundred day simple moving average is $1,170.42.

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 (EPS) for the quarter, topping analysts' consensus estimates of $33.28 by $5.97. The company had revenue of $8.96 billion for the quarter. Sandisk had a net margin of 56.47% and a return on equity of 87.84%. Sandisk's revenue for the quarter was up 371.6% compared to the same quarter last year. During the same period last year, the company earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, equities research analysts expect that Sandisk Corporation will post 187.16 earnings per share for the current year.

Sandisk declared that its board has authorized a share repurchase program 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 repurchase up to 6.6% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's board believes its shares are undervalued.

Insider Activity at Sandisk

In other news, EVP Alper Ilkbahar sold 2,000 shares of the company's stock in a transaction that occurred on 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 transaction, the executive vice president directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Bernard Shek sold 600 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $1,162.16, for a total value of $697,296.00. Following the completion of the transaction, the insider owned 30,915 shares in the company, valued at approximately $35,928,176.40. This represents a 1.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 3,800 shares of company stock worth $6,504,856. Corporate insiders own 0.21% of the company's stock.

Institutional Trading of Sandisk

Hedge funds and other institutional investors have recently bought and sold shares of the business. Valley Wealth Managers Inc. bought a new position in Sandisk in the 1st quarter valued at about $25,000. Whittier Trust Co. purchased a new stake in shares of Sandisk in the fourth quarter worth approximately $26,000. Greenline Wealth Management LLC bought a new position in shares of Sandisk in the fourth quarter valued at approximately $26,000. Chung Wu Investment Group LLC purchased a new position in shares of Sandisk during the fourth quarter valued at approximately $27,000. Finally, IMG Wealth Management Inc. purchased a new position in shares of Sandisk during the first quarter valued at approximately $29,000.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source