Overview
- Western Digital confirmed a debt-for-equity secondary of about 5.8 million SanDisk shares with J.P. Morgan and Bank of America affiliates, totaling roughly $3.17 billion at around $545 per share.
- The company said the sale will speed deleveraging and sharpen its focus on the hard-disk drive business.
- Citron Research disclosed a short position, arguing SanDisk is priced like Nvidia despite selling commodity NAND and warning that Samsung’s scale could quickly add supply and erode prices.
- SanDisk fell roughly 4% to 5% on Tuesday after the short call, following a surge of more than 1,000% since its 2025 spin-off and about 170% year to date.
- Citron also pointed to Western Digital’s recent share sale at prices about 25% below current levels, while analysts maintain a Moderate Buy with targets ranging from roughly $235 to $1,000 and an average near $637.