SanDisk (SNDK) stock fell 1% during after-hours trading on Tuesday.
The decline followed a regulatory filing revealing that former parent company Western Digital intends to sell up to 7,513,019 shares of SanDisk common stock. SanDisk will receive no proceeds from the offering, as Western Digital is the sole seller.
The sale is being conducted under a pre-existing stockholder’s and registration rights agreement. The filing signaled a potential influx of shares to the market, triggering the price drop.