SanDisk’s eight-for-one stock split is approaching as its shares fall

SanDisk is approaching an eight-for-one stock split, with additional shares scheduled to be distributed on Nov. 9 and adjusted trading expected to begin on Nov. 20, according to reporting published Nov. 7.

The split comes amid a broad decline in SanDisk shares and other memory stocks. The company’s market capitalization was reported at $118 billion, down from a record $347 billion this year, while the Roundhill Memory ETF has fallen more than 51% from its all-time high.

SanDisk’s split timetable

Shareholders are expected to receive seven additional shares for every share held on Nov. 9. Trading is then expected to move to a post-split-adjusted basis on Nov. 20. Another investment report described the eight-for-one split as effective Nov. 19, so the reviewed sources differ by one day on the effective date.

The company said the split is intended to make its stock more accessible to investors and employees. The reviewed reporting does not establish that additional shares have already been distributed or that adjusted trading has already begun.

Earnings growth alongside a market sell-off

SanDisk reported third-quarter revenue of $11 billion and net income of more than $8 billion, with the increase in revenue attributed to stronger demand for its products. A separate report said revenue rose 378% year over year in the latest quarter.

Management expects fourth-quarter revenue of $12.2 billion to $12.6 billion, with gross margin forecast at 84.4% to 85.4%. These are company expectations rather than realized quarterly results.

The strong reported performance has not prevented a steep decline in the stock. SanDisk shares were described as having reached their lowest level since April 9, while broader memory stocks have also fallen as investors raised concerns about artificial-intelligence spending, potential industry oversupply and a cyclical downturn.

Valuation and analyst targets

Analysts have reduced several SanDisk price targets but remain, on average, optimistic. Wells Fargo lowered its target from $1,550 to $1,300, Royal Bank of Canada from $1,600 to $1,400 and Susquehanna’s Mehdi Hosseini from $2,747 to $2,720. The average analyst target cited was $2,056, 146% above the stock price referenced in the report.

SanDisk’s forward price-to-earnings ratio was listed at 3.67, compared with a technology-sector average of 19.16 and an S&P 500 average of 19. Its forward price-to-earnings-to-growth ratio was listed at 0.09, versus a sector median of 1.01.

Meta relationship and data-center demand

Meta was identified as a SanDisk customer that buys solid-state drives for its data centers. The report said SSDs have been in short supply because of the intensity of the AI build-out, contributing to higher prices and SanDisk’s growth. The reviewed material does not establish a new SanDisk order, a contract value or a specific delivery schedule.

Meta was also undergoing its own split-related change, creating a new non-voting Class C share class in an effectively two-for-one structure. That separate corporate action was part of the comparison between the two stocks rather than a development involving SanDisk.