Shares of Sandisk Corporation (NASDAQ:SNDK – Get Free Report) rose 4.8% during mid-day trading on Tuesday. The company traded as high as $1,153.19 and last traded at $1,126.52. Approximately 8,278,657 shares traded hands during mid-day trading, a decline of 44% from the average daily volume of 14,739,916 shares. The stock had previously closed at $1,075.08.
Key Headlines Impacting Sandisk
Here are the key news stories impacting Sandisk this week:
- Positive Sentiment: Sandisk’s latest quarter was strong: earnings of $49.51 per share topped the $46.19 consensus, while revenue reached $11.03 billion, up 23% year over year. An analyst also pointed to a large remaining-performance-obligation pipeline and long-term supply agreements as support for future revenue visibility. Article: Sandisk: A 35 Percent Stock Decline, But RPO Tells A Different Story
- Positive Sentiment: The company’s previously announced $14 billion share-repurchase authorization may provide support by returning capital and reducing shares outstanding. Article: Should You Buy Sandisk Before Its 8-for-1 Stock Split?
- Neutral Sentiment: Sandisk’s planned 8-for-1 stock split is approaching. A split changes the number of shares and per-share price, but does not by itself change the company’s value. Article: Meta, Sandisk Unveil First-Ever Stock Splits in 8 Days
- Negative Sentiment: Investors are reducing exposure to AI-linked chip and memory stocks after U.S. midterm results heightened worries about stricter AI regulation, a possible pause in AI expansion, and delays to data-center investment. That could threaten expectations for memory demand. Article: SanDisk Leads Memory Stocks Lower
- Negative Sentiment: A major phone-chip maker’s weak-sales warning, attributed to “industry-wide memory dynamics,” added to concerns about near-term demand across the memory sector and weighed on Sandisk alongside peers. Article: Sandisk Sinks, Micron Down as Phone Chipmaker Cites Weak Sales
Wall Street Analyst Weigh In
A number of research firms recently commented on SNDK. China Renaissance lifted their price target on Sandisk from $2,000.00 to $2,250.00 and gave the stock a “buy” rating in a report on Wednesday, August 19th. Bank of America restated a “buy” rating and issued a $2,000.00 price objective on shares of Sandisk in a research note on Friday, October 30th. New Street Research set a $3,000.00 price objective on Sandisk in a research report on Thursday, August 6th. Raymond James Financial lifted their target price on Sandisk from $1,470.00 to $2,000.00 and gave the stock an “outperform” rating in a research note on Thursday, August 6th. Finally, Citigroup reissued a “buy” rating on shares of Sandisk in a report on Thursday, October 1st. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $2,056.23.
Read Our Latest Research Report on SNDK
Sandisk Stock Performance
The firm has a market cap of $114.75 billion, a P/E ratio of 8.88, a P/E/G ratio of 0.08 and a beta of 5.66. The firm’s fifty day moving average is $1,517.43 and its 200 day moving average is $1,263.07.
Sandisk shares are going to split on the morning of Friday, November 20th. The 8-1 split was announced on Thursday, October 29th. The newly created shares will be payable to shareholders after the market closes on Thursday, November 19th.
Sandisk (NASDAQ:SNDK – Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The data storage provider reported $49.51 earnings per share (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 firm had revenue of $11.03 billion during the quarter. During the same quarter last year, the business earned $1.22 earnings per share. The company’s revenue was up 23.0% on a year-over-year basis. As a group, equities research analysts forecast that Sandisk Corporation will post 222.70 EPS for the current year.
Sandisk declared that its Board of Directors has authorized a share buyback program on Wednesday, August 5th that permits the company to buy back $14 billion in outstanding shares. This buyback authorization permits the data storage provider to reacquire up to 6.6% of its shares through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.
Insider Transactions at Sandisk
In related news, EVP Alper Ilkbahar sold 4,712 shares of Sandisk stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $1,540.58, for a total transaction of $7,259,212.96. Following the completion of the sale, the executive vice president directly owned 44,134 shares of the company’s stock, valued at approximately $67,991,957.72. This trade represents a 9.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Luis Visoso sold 1,000 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $1,568.83, for a total value of $1,568,830.00. Following the completion of the sale, the chief financial officer owned 130,976 shares of the company’s stock, valued at $205,479,078.08. This trade represents a 0.76% 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 90 days, insiders sold 77,899 shares of company stock valued at $121,156,782. 0.29% of the stock is currently owned by company insiders.
Institutional Trading of Sandisk
Hedge funds and other institutional investors have recently bought and sold shares of the business. Maryland State Retirement & Pension System lifted its stake in Sandisk by 13.0% in the third quarter. Maryland State Retirement & Pension System now owns 8,865 shares of the data storage provider’s stock valued at $15,424,000 after purchasing an additional 1,019 shares during the last quarter. Ritholtz Wealth Management increased its position in Sandisk by 1.9% in the third quarter. Ritholtz Wealth Management now owns 5,444 shares of the data storage provider’s stock worth $9,472,000 after buying an additional 103 shares during the last quarter. International Private Wealth Advisors LLC bought a new stake in shares of Sandisk in the third quarter valued at $2,502,000. Machina Capital S.A.S. bought a new stake in shares of Sandisk in the third quarter valued at $3,497,000. Finally, Silver Grove Financial Group Inc. raised its stake in shares of Sandisk by 26.1% in the third quarter. Silver Grove Financial Group Inc. now owns 111 shares of the data storage provider’s stock valued at $193,000 after buying an additional 23 shares during the period.
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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