SanDisk drops after Western Digital announces a $3.09B secondary share sale

What happened

Western Digital ($WDC) plans to sell its remaining SanDisk ($SNDK) shares via a secondary offering worth about $3.09B.

The sale is tied to a near-term tax deadline (Feb 21, 2026) and is aimed at accelerating debt reduction, including a debt-for-equity exchange involving affiliates of JPMorgan ($JPM) and Bank of America ($BAC).

$SNDK dipped on the “new supply / overhang” headline, while $WDC ticked up on the balance-sheet improvement angle.

Why this matters to traders

Secondary offerings often pressure the sold stock short-term because buyers demand a discount and the market has to absorb extra supply.

For the seller ($WDC), converting a stake into cash to pay down debt can improve financial flexibility ...