Sandisk (NASDAQ:SNDK) Stock Falls 4.1% – Here’s What Happened

Sandisk Corporation (NASDAQ:SNDK)’s stock price was down 4.1% on Thursday. The company traded as low as $869.46 and last traded at $937.46. 12,871,342 shares changed hands during trading, a decline of 13% from the average daily volume of 14,808,693 shares. The stock had previously closed at $977.69.

Sandisk News Summary

Investors following SNDK have been watching these news items:

• Neutral Sentiment: Sandisk’s planned 8-for-1 stock split changes the number of shares and per-share price, but not the underlying value of an investor’s stake. Will SanDisk’s planned stock split reverse its share decline?
• Negative Sentiment: Reports that Nvidia CEO Jensen Huang resigned unsettled the AI semiconductor supply chain and weighed on memory stocks. Investors may be concerned that disruption or weaker spending among AI-chip customers could slow demand for Sandisk’s products. Why Sandisk stock dropped on Thursday
• Negative Sentiment: Broader concerns about industry-wide memory dynamics, competition, and how sustainable elevated earnings and memory prices will be continue to weigh on sentiment. Sandisk dropped, so what is behind its latest move?

Wall Street Analysts Forecast Growth

SNDK has been the topic of a number of research analyst reports. Raymond James Financial boosted their target price on Sandisk from $1,470.00 to $2,000.00 and gave the company an “outperform” rating in a research report on Thursday, August 6th. Fox Advisors cut Sandisk from an “overweight” rating to an “equal weight” rating in a research note on Monday, November 2nd. Wells Fargo & Company cut their price objective on Sandisk from $1,550.00 to $1,300.00 and set an “equal weight” rating on the stock in a report on Friday, October 30th. Mizuho increased their target price on Sandisk from $1,875.00 to $2,050.00 and gave the stock an “outperform” rating in a research note on Tuesday, October 6th. Finally, Evercore restated an “outperform” rating and set a $3,100.00 target price (up from $1,400.00) on shares of Sandisk in a report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $2,056.23.

Sandisk Stock Performance

The stock has a market capitalization of $133.39 billion, a PE ratio of 7.51, a P/E/G ratio of 0.07 and a beta of 5.66. The firm’s 50 day moving average is $1,467.15 and its two-hundred day moving average is $1,271.20.

Sandisk shares are set to split before the market opens on Friday, November 20th. The 8-1 split was announced on Thursday, October 29th. The newly issued shares will be distributed to shareholders after the market closes on Thursday, November 19th.

Sandisk (NASDAQ:SNDK) last posted its quarterly earnings results on Thursday, October 29th. The data storage provider reported $49.51 EPS for the quarter, topping the consensus estimate of $46.19 by $3.32. Sandisk had a net margin of 67.04% and a return on equity of 125.70%. The business had revenue of $11.03 billion during the quarter. During the same quarter last year, the firm earned $1.22 EPS. The business’s revenue was up 23.0% on a year-over-year basis. On average, analysts anticipate that Sandisk Corporation will post 226.01 EPS for the current year.

Sandisk announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, August 5th that authorizes the company to buy back $14 billion in shares. This repurchase authorization authorizes the data storage provider to reacquire up to 6.6% of its shares through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In related news, CFO Luis Visoso sold 1,000 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $1,568.83, for a total transaction of $1,568,830.00. Following the completion of the transaction, the chief financial officer directly owned 130,976 shares of the company’s stock, valued at $205,479,078.08. The trade was a 0.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Bernard Shek sold 2,308 shares of the business’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $1,767.33, for a total value of $4,078,997.64. Following the transaction, the insider directly owned 25,305 shares of the company’s stock, valued at $44,722,285.65. The trade was a 8.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 77,899 shares of company stock valued at $121,156,782. 0.29% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Sandisk

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Handelsbanken Fonder AB lifted its stake in Sandisk by 35.1% during the second quarter. Handelsbanken Fonder AB now owns 57,564 shares of the data storage provider’s stock worth $130,885,000 after purchasing an additional 14,964 shares during the last quarter. Focus Partners Advisor Solutions LLC purchased a new position in Sandisk in the second quarter valued at approximately $4,775,000. Florida Financial Advisors LLC purchased a new position in Sandisk in the first quarter valued at approximately $2,747,000. UNICOM Systems Inc. raised its holdings in Sandisk by 14.9% during the second quarter. UNICOM Systems Inc. now owns 58,500 shares of the data storage provider’s stock worth $133,013,000 after purchasing an additional 7,600 shares in the last quarter. Finally, Affinity Capital Advisors LLC purchased a new stake in shares of Sandisk during the 2nd quarter worth approximately $2,506,000.

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.