New York, Feb 20, 2026, 10:02 ET — Regular session
- Sandisk shares rose in early trading after a volatile week tied to a large Western Digital stake sale.
- The block sale is adding near-term supply, but investors are also reading it as a step toward clearing an overhang.
- Attention is shifting to whether more shares hit the market and how quickly Western Digital exits fully.
Sandisk Corp shares climbed on Friday, extending a rebound as investors digested a discounted secondary share sale by former parent Western Digital. Sandisk was up about 3.3% at $641.87 in morning trade, after swinging between $613.06 and $646.60.
The move matters now because supply — not sales — has been setting the tone. A big holder selling stock can pressure prices even when nothing changes at the company, simply because buyers demand a discount to absorb the shares.
It also puts a spotlight on what comes next for the float. Traders have been watching whether the offering clears cleanly and whether Western Digital lines up follow-on sales that could hang over the stock.
Western Digital said this week it would raise about $3.17 billion by selling part of its stake in Sandisk, using the proceeds to reduce debt, in a deal tied to a debt-for-equity exchange with affiliates of JPMorgan and BofA Securities. Western Digital said it would still hold roughly 1.7 million Sandisk shares after the transaction and planned to sell those later. (Reuters)
The shares being sold are existing stock, not new shares issued by Sandisk — what Wall Street calls a secondary offering. The offering was priced at $545 per share, and Sandisk does not receive proceeds from the sale. (Barron’s)
Western Digital CFO Kris Sennesael told analysts it was the company’s intention “to monetize those shares before the one-year anniversary of the separation,” according to MarketWatch. Evercore ISI analyst Amit Daryanani wrote the transaction marked “a material acceleration of WDC’s deleveraging efforts,” and could widen options for capital returns once the balance sheet is cleaner. (MarketWatch)
The trade has rippled across the storage and memory complex on Friday. Western Digital shares were up about 3.3%, while Micron Technology gained about 2.7%.
Sandisk’s own tape showed a market still trying to find a clearing price after the block, with sharp intraday ranges and heavy volume. That kind of churn can persist for a few sessions as underwriters place stock and short-term holders reposition.
But the near-term risk cuts the other way. If more stock is lined up for sale — or if buyers step back on wider market volatility — the same “share overhang” dynamic can drag the price lower even without fresh company news.
The next catalyst is mechanical, not operational: investors will watch for any further filings or disclosures around additional stake sales and how quickly Western Digital moves on its remaining Sandisk position, with focus on the timing of any follow-on distribution or exchange.
