SanDisk Corporation (SNDK): What Do Hedge Funds Think?

SanDisk Corporation (NASDAQ:SNDK) is a data-storage solutions provider for the enterprise. It also offers storage solutions to electronic and digital devices like smartphones, digital cameras and tablets. In spite of the burgeoning demand for digital devices like smartphones and cameras, the maker of removable memory chips has been struggling to keep its investors happy lately. In the past month it recorded a 3-percent dip in its market valuation to offset a 69-percent increase the stock has posted in its value over the trailing 12 months. The firm had recorded net income of $900 million from sales of $5.98 billion in the same period.

SanDisk Corporation (NASDAQ:SNDK) investors should pay attention to a decrease in enthusiasm from smart money of late.

SanDisk Corporation (NASDAQ:SNDK)

What does the smart money think about SanDisk Corporation (NASDAQ:SNDK)?

Heading into the fourth quarter, 53 hedge funds which Insider Monkey tracks held long positions in this stock at the end of third quarter, showing no change from the second quarter.

According to Insider Monkey’s comprehensive database, Rob Citrone’s Discovery Capital Management had the biggest position in SanDisk Corporation (NASDAQ:SNDK), worth $464.8 million, accounting for 4.1 percent of its total 13F portfolio. On Discovery Capital Management’s heels is Michael Lowenstein of Kensico Capital, with a $393.4-million position; 9.7 percent of its portfolio is allocated to the stock. Some other peers with similar optimism include Sandy Nairn’s Edinburgh Partners, David Cohen and Harold Levy’s Iridian Asset Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Since SanDisk Corporation (NASDAQ:SNDK) has experienced neutral interest from the hedge-fund industry, logic holds that there is a sect of money managers that decided to sell off their full holdings in the last quarter. Interestingly, Donald Chiboucis’s Columbus Circle Investors sold off the biggest stake of all the hedgies monitored, valued at about $133.9 million in stock, and Andreas Halvorsen of Viking Global was right behind this move, as the fund sold off about $65.8-million worth. These transactions are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with SanDisk Corporation (NASDAQ:SNDK)?

A close look at insider activity over the last six months suggests that, SanDisk Corporation (NASDAQ:SNDK) had zero unique insider buys and 10 insider sales (see the details of insider trades here).

Let’s check out hedge-fund and insider activity in other stocks similar to SanDisk Corporation (NASDAQ:SNDK). These stocks are Brocade Communications Systems, Inc. (NASDAQ:BRCD), EMC Corporation (NYSE:EMC), Western Digital Corp. (NASDAQ:WDC), NetApp Inc. (NASDAQ:NTAP), and Seagate Technology PLC (NASDAQ:STX). All of these stocks are in the data storage devices industry and their market caps are similar to SNDK’s market cap.

Company Name # of Hedge Funds # of Insiders Buying # of Insiders Selling
Brocade Communications Systems, Inc. (NASDAQ:BRCD) 29 0 3
EMC Corporation (NYSE:EMC) 54 0 13
Western Digital Corp. (NASDAQ:WDC) 35 0 12
NetApp Inc. (NASDAQ:NTAP) 43 0 7
Seagate Technology PLC (NASDAQ:STX) 30 1 14

Hedge fund interest was seen in EMC Corporation (NYSE:EMC) and NetApp Inc. (NASDAQ:NTAP) with 54 and 43 funds. There were transactions of selling which was seen in Seagate Technology PLC (NASDAQ:STX) and EMC Corporation (NYSE:EMC) with 14 and 13 transactions taking place in last six months.


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