Why Sandisk Shares Are Rallying Monday After Close
Shares of semiconductor company Sandisk Corporation (NASDAQ:SNDK) are trading higher on Monday after close. Here's a look at the trading activity and the reason for the higher share price after the close of the market.
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Sandisk Joining S&P 500
S&P Global announced Monday that Sandisk will replace The Interpublic Group of Companies (NYSE:IPG) in the S&P 500. An analyst recently predicted Sandisk would join the S&P 500 Index.
Sandisk, which is currently a member of the S&P SmallCap 600, will be added to the S&P 500 on Nov. 28 and replaced in the SmallCap 600 by PTC Therapeutics Inc (NASDAQ:PTCT).
The Interpublic Group of Companies is being removed from the S&P 500 as the company is being acquired by Omnicom Group Inc (NYSE:OMC), with the deal expected to close soon.
The addition of Sandisk in the S&P 500 will lead to some of the largest mutual funds and ETFs that track the index, such as the SPDR S&P 500 ETF Trust (NYSE:SPY), needing to buy shares of the company and add to their holding.
Companies that are added to the major market index often trade higher on news of the move.
Sandisk Shares Jump
The company recently reported fourth-quarter financials on Nov. 6 with both revenue and earnings per share beating analyst estimates. The company has beaten analyst estimates for revenue in eight of the past 10 quarters and beaten analyst estimates for earnings per share in eight of the last 10 quarters.
Sandisk shares traded higher Monday by over 13% with Morgan Stanley maintaining an Overweight rating and raising the price target from $263 to $273.
Shares are up another 9% to $247.25 in after-hours trading versus a 52-week trading range of $27.90 to $284.76.
Sandisk stock is up over 530% year-to-date in 2025.
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