Sandisk (NASDAQ:SNDK) Trading 5.5% Higher – Still a Buy?

Sandisk Corporation (NASDAQ:SNDK)’s share price shot up 5.5% during mid-day trading on Monday . The stock traded as high as $1,572.69 and last traded at $1,566.70. Approximately 22,845,056 shares were traded during trading, an increase of 41% from the average session volume of 16,198,010 shares. The stock had previously closed at $1,484.98.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Mizuho reduced their target price on shares of Sandisk from $1,900.00 to $1,875.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 25th. Wedbush reissued an “outperform” rating and set a $2,000.00 price target on shares of Sandisk in a report on Friday, August 14th. Bank of America boosted their price target on shares of Sandisk from $2,100.00 to $2,500.00 and gave the company a “buy” rating in a research report on Wednesday, July 1st. Zacks Research raised shares of Sandisk from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 30th. Finally, Melius Research set a $2,350.00 price objective on shares of Sandisk in a report on Monday, May 18th. Three research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $1,998.14.

Sandisk Stock Up 5.5%

The stock has a fifty day moving average of $1,595.87 and a 200-day moving average of $1,255.06. The firm has a market capitalization of $229.40 billion, a P/E ratio of 21.49, a PEG ratio of 0.15 and a beta of 5.21.

Sandisk (NASDAQ:SNDK) last issued its quarterly earnings data on Wednesday, August 5th. The data storage provider reported $39.25 EPS for the quarter, topping analysts’ consensus estimates of $33.28 by $5.97. The firm 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%. The firm’s revenue was up 371.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.29 EPS. Sandisk has set its Q1 2027 guidance at 44.000-46.000 EPS. As a group, analysts forecast that Sandisk Corporation will post 208.92 EPS for the current fiscal year.

Sandisk announced that its board has approved a stock buyback plan on Wednesday, August 5th that authorizes the company to buyback $14.00 billion in outstanding shares. This buyback authorization authorizes the data storage provider to repurchase up to 6.6% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, insider Bernard Shek sold 600 shares of the business’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 completion of the transaction, the insider owned 30,915 shares in the company, valued at $35,928,176.40. The trade was a 1.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,800 shares of company stock valued at $2,991,696. Insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Sandisk

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

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.