Sandisk Recovers after Month Long Selloff
Shares of semiconductor producer SanDisk (NASDAQ: SNDK) rose more than 5% today, perhaps indicating that the stock had been oversold. As a semiconductor producuer, SanDisk makes parts for popular consumer electronic devices.
On April 19th, SanDisk released Q1 earnings per share that missed analyst expectations after three consecutive quarters of beating analyst estimates. Sanjay Mehrotra, President and CEO, attributed this disappointing quarter to falling prices and demand for mobile cards. Following this Q1 earnings release and disappointing management guidance, the stock declined around 20% until yesterday. Today, as the company's P/E ratio neared 9, shares of SanDisk recovered 5%.
As a company that analysts expect to grow earnings more than 50% from full year 2012 to full year 2013, investors might have seen the stock as a bargain this morning, driving a spike in the stock price.
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