--- title: "Why SanDisk Stock Dropped 6% on WDC Stake Sale News" type: "News" locale: "en" url: "https://longbridge.com/en/news/276197656.md" description: "SanDisk (SNDK) stock fell 5.7% on February 17, with an additional 2% drop in after-hours trading, following Western Digital's (WDC) announcement to sell its entire stake in the company. WDC plans to sell 7.51 million shares at $535 to $555 each, raising up to $3.09 billion to reduce its debt. This sale comes amid a global shortage of flash memory chips, with analysts divided on SNDK's long-term outlook, giving it a Moderate Buy consensus rating and a price target of $637.33, indicating a potential upside of 7.9%." datetime: "2026-02-18T04:40:51.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276197656.md) - [en](https://longbridge.com/en/news/276197656.md) - [zh-HK](https://longbridge.com/zh-HK/news/276197656.md) --- # Why SanDisk Stock Dropped 6% on WDC Stake Sale News SanDisk (SNDK) stock dropped 5.7% on February 17 and fell another 2% in after-hours trading following news that former parent Western Digital (WDC) plans to exit its entire stake in the memory chipmaker. According to a regulatory filing, WDC is selling 7.51 million shares at $535 to $555 per share. ### President's Day Sale - 70% Off - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential It is worth noting that SanDisk will not receive any proceeds from this secondary share offering. Instead, WDC will raise up to $3.09 billion from this stock sale. The offer price represents a discount of 9.4% to 6% to SNDK's closing price of $590.59 yesterday. ## **Why Is Western Digital Selling SNDK Stock?** Western Digital aims to reduce its debt by exchanging the SanDisk shares for debt held by affiliates of JPMorgan (JPM) and Bank of America (BAC). As of December 31, 2025, WDC had $2.23 billion in short-term debt and $2.43 billion in long-term debt. WDC had announced plans to sell its remaining 7.5 million SanDisk shares before the one-year anniversary of their spinoff, which closed on Feb. 24, 2025. CFO Kris Sennesael announced this during WDC's January 29 quarterly earnings call. ## **SanDisk Stock Price Movement** The offering coincides with a global shortage of flash memory chips, fueled by massive AI spending. Flash memory technologies such as NAND (Not AND) and DRAM (dynamic random-access memory) are essential for data storage/processing in AI data centers, devices, and servers, driving current demand spikes. SanDisk's products power computers and phones, but the tech industry's boom-and-bust cycles have kept its stock valuation modest. With DRAM chip spot prices surging since September, shares of SanDisk and peers are likely to remain high at least into 2026. SNDK stock has skyrocketed more than 1,152% over the past year. ## **Is SNDK a Good Stock to Buy?** Analysts remain divided about SanDisk's long-term outlook. On TipRanks, SNDK stock has a Moderate Buy consensus rating based on 11 Buys and four Hold ratings. The average SanDisk price target of $637.33 implies 7.9% upside potential from current levels. ### Related Stocks - [SNDK.US](https://longbridge.com/en/quote/SNDK.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [WDC.US](https://longbridge.com/en/quote/WDC.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) ## Related News & Research - [Why 1 Analyst Is Betting DRAM Strength Can Supercharge Sandisk Stock to $3,250](https://longbridge.com/en/news/288771723.md) - [What's Going On With SanDisk Stock Monday?](https://longbridge.com/en/news/288305186.md) - [With Analysts Calling for Western Digital to Double Earnings, the WDC Stock Rally Isn’t Over Yet](https://longbridge.com/en/news/287771237.md) - [Kingsview Wealth Management LLC Invests $481,000 in Western Digital Corporation $WDC](https://longbridge.com/en/news/288546902.md) - [Western Digital (WDC) Deepens AI Storage Push With Post-Quantum Drives and New Board Expertise](https://longbridge.com/en/news/288248037.md)