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How Has Sandisk Corporation Performed?

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Sandisk

Sandisk Corporation (SNDK) has generated returns of -3.30% in the last week, compared with returns of -0.97% for the Technology, Hardware, and Storage subsector and 0.69% for XLK.

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Moving averages

Sandisk (SNDK) closed at $63.92 on its most recent day of trading on June 19, 2015, which is lower than its 20-day, 50-day, and 100-day moving averages. The firm’s 20-day moving average price is $66.79, its 50-day moving average price is $67.46, and its 100-day moving average price is $72.76.

Sandisk is trading 4.30% below its 20-day moving average, 5.25% below its 50-day moving average, and 12.15% below its 100-day moving average. SNDK is trading close to its Upper Bollinger Band figure of $63.63, with a relative strength index (or RSI) of 36 that indicates the stock might be oversold.

Analyst estimates

Earlier last week, Morgan Stanley downgraded Sandisk’s stock and lowered its price target from $80 to $75. Morgan Stanley analyst Joseph Moore stated, “With share loss in SSD and embedded, we think the company is losing end market flexibility, and will have to move to lower margin exposures in the short run. We do think the stock offers value, and see limited downside, but are stepping to the sidelines while the company regains market traction.”

Moore is of the opinion that it would be difficult for SNDK to recover the SSD (or solid-state drive) market share that has been lost to Apple due to low market penetration outside Apple. This would drive SanDisk to focus on lower margin products.

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Out of the 36 analysts covering the stock, 14 have a “buy” recommendation, three have a “hold” recommendation, and 19 have a “sell” recommendation on SNDK. The analyst stock price target is $69.10, with a median target estimate of $74. SanDisk is trading at a discount of 14% to its median target estimate.

Peer companies

The trailing five-day average return of peer companies such as Seagate Technologies (STX), Western Digital (WDC), and Hewlett Packard (HPQ) stands at -0.67%, -2.14%, and -1.88%, respectively.

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