Sandisk Corporation (NASDAQ:SNDK) stock rose about 4% in Friday premarket trading, extending Thursday’s 13.67% surge. The move followed the company’s bullish long-term financial outlook. Nasdaq futures rose 0.11%, while S&P 500 futures gained 0.04%.
Sandisk Investor Day Fuels Rally
On Thursday, Sandisk stock surged after the company outlined targets that included an adjusted gross margin of about 80% and an adjusted free cash flow margin of roughly 50%.
The company also plans to return 100% of excess cash to shareholders after investing in the business. The outlook helped lift sentiment across the memory sector.
Sandisk Stock Technical Analysis
Sandisk remains in a strong long-term uptrend despite recent volatility. The stock trades 77.8% above its 200-day simple moving average of $895.91 and 14.7% above its 100-day SMA of $1,388.98.
However, shares remain about 4% below the 50-day SMA of $1,659.43. A move above that level could strengthen the intermediate-term trend.
The relative strength index stands at 53.43. That is a neutral reading and suggests the stock is neither overbought nor oversold.
The moving-average picture is mixed. The 20-day SMA remains below the 50-day SMA, signaling near-term weakness. However, the 50-day SMA remains above the 200-day SMA, supporting the longer-term bullish trend.
Key resistance sits near $1,696.50. Key support is around $1,485, close to the 50-day exponential moving average of $1,478.34.
Analyst Outlook
Sandisk carries a Buy consensus rating, with an average price forecast of $2,114.77. Recent analyst moves include:
Argus Research upgraded the stock to Buy on Aug. 10. RBC Capital maintained a Sector Perform rating and raised its price forecast to $1,300 on Aug. 6. Wells Fargo maintained an Equal-Weight rating and lowered its price forecast to $1,400 the same day.
Benzinga Edge Rankings
Sandisk has a Momentum score of 99.89 on the Benzinga Edge scorecard, reflecting strong relative price performance. However, its Value score stands at 13.47, indicating weaker valuation characteristics.
Overall, the rankings point to a momentum-driven stock. That makes the company’s ability to hold key technical support levels important after its sharp rally.
Sandisk ETF Exposure
Sandisk has significant weightings in several exchange-traded funds. It accounts for 9.61% of the Invesco S&P 500 Pure Growth ETF (NYSE:RPG), 7.37% of the First Trust US Equity Opportunities ETF (NYSE:FPX) and 7.06% of the Invesco Dorsey Wright Technology Momentum ETF (NASDAQ:PTF).
Large flows into or out of these ETFs could therefore contribute to trading activity in Sandisk shares.
SNDK Stock Price Action
SNDK Stock Price Activity: Sandisk shares were up 3.98% at $1589.00 during premarket trading on Friday, according to Benzinga Pro data.
Photo via Shutterstock
