NEW YORK, Feb 21, 2026, 11:33 (EST) — Market closed
- Sandisk ended the week higher as traders digested Western Digital’s block sale and what might come next.
- The deal is a secondary offering — existing holders selling stock — so Sandisk does not raise cash from it.
- Investors now look to management’s conference appearances, starting Feb. 25, for fresh signals on demand and supply.
Sandisk Corporation shares closed up 4.65% on Friday at $649.97, and edged down 0.47% in after-hours trading to $646.90. U.S. markets are shut for the weekend and trading resumes on Monday. (Investing)
The late-week jump matters because investors have been trying to price a wave of stock supply tied to Western Digital’s move to shrink its stake in its former flash-memory unit.
That’s not just a technical issue. A big seller can hang over a stock — even one that’s posting strong numbers — because traders worry more shares will hit the tape.
Sandisk said it priced a secondary public offering of 5,821,135 shares at $545 per share, all owned by Western Digital, and said it will not receive proceeds. It also laid out a debt-for-equity exchange — swapping Sandisk shares for Western Digital debt held by affiliates of J.P. Morgan and BofA Securities — and said Western Digital expects to own 1,691,884 shares after the exchange, which it plans to dispose of later. (Business Wire)
Western Digital has said it wants to cut its debt load, which Reuters pegged at $4.69 billion as of January, and it has been reshaping itself into a pure-play hard-disk-drive company after the Sandisk spin. Reuters also reported the secondary sale was priced at a 7.7% discount to Sandisk’s prior close, with Western Digital planning to sell its remaining stake eventually. (Reuters)
Barron’s reported the sale was completed ahead of a Feb. 21 tax deadline tied to the separation, and said Sandisk shares rose on the day despite the added supply. That timing has stayed front and center in trading, because it shapes how quickly Western Digital can finish exiting. (Barron’s)
Under the surface, the story is still about demand. “Customers prefer supply over price,” Sandisk CEO David Goeckeler told Reuters last month as the company pointed to AI data centers pushing up demand for flash storage. (Reuters)
The next near-term test is not an earnings date. It’s management’s microphone.
Sandisk said management will present at Bernstein’s 4th Annual TMT Forum on Feb. 25, followed by Morgan Stanley’s Technology, Media & Telecom Conference on March 3 and Cantor’s Global Technology & Industrial Growth Conference on March 11. (Business Wire)
Investors will listen for plain answers on NAND — the flash memory Sandisk sells — including pricing, supply tightness and whether customers are still paying up to secure volume. Conference remarks can move a stock fast when expectations are stretched.
But there are clear risks. Another leg of Western Digital selling, or a distribution of shares, could add supply again, and the memory cycle can turn quickly if demand cools or supply ramps faster than buyers expect.
For the next session, traders will be watching whether Sandisk holds Friday’s move and whether any filings shed light on how Western Digital plans to dispose of its remaining shares. The first scheduled catalyst is Sandisk’s Feb. 25 appearance at the Bernstein forum.
