Morgan Stanley Increases Dell Technologies (NYSE:DELL) Price Target to $499.00

Key Points

• Morgan Stanley raised Dell Technologies’ price target to $499 from $434 while maintaining an “equal weight” rating, implying 18.1% upside. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $516.41.
• Dell reported strong quarterly results, including $7.04 in adjusted EPS and $46.97 billion in revenue, with revenue up 57.7% year over year. AI-server demand was a major driver, supported by $60.9 billion in orders and an approximately $95 billion backlog.
• Execution and valuation risks remain: insiders sold more than $870 million of stock in the last quarter, while investors are watching component shortages, memory-cost pressure on server margins and Dell’s ability to convert its large AI backlog into profitable revenue.

Dell Technologies (NYSE:DELL - Get Free Report) had its target price boosted by equities researchers at Morgan Stanley from $434.00 to $499.00 in a research report issued on Wednesday, Benzinga reports. The brokerage currently has an "equal weight" rating on the technology company's stock. Morgan Stanley's price objective would indicate a potential upside of 18.10% from the stock's previous close.

A number of other analysts have also commented on the stock. Barclays restated an "overweight" rating and set a $603.00 price target on shares of Dell Technologies in a research note on Wednesday. Bank of America lifted their price objective on shares of Dell Technologies from $500.00 to $505.00 and gave the company a "buy" rating in a report on Monday. Wells Fargo & Company upped their target price on shares of Dell Technologies from $505.00 to $545.00 and gave the stock an "overweight" rating in a report on Friday, August 14th. Daiwa Securities Group raised their price target on shares of Dell Technologies from $170.00 to $465.00 and gave the company an "outperform" rating in a research report on Tuesday, June 2nd. Finally, Wolfe Research downgraded Dell Technologies from a "peer perform" rating to a "peer perform" rating in a research note on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $516.41.

Dell Technologies Stock Performance

DELL stock opened at $422.54 on Wednesday. The stock's 50 day simple moving average is $433.44 and its 200 day simple moving average is $301.96. The company has a market cap of $273.85 billion, a P/E ratio of 33.56, a price-to-earnings-growth ratio of 0.94 and a beta of 1.34. Dell Technologies has a fifty-two week low of $110.22 and a fifty-two week high of $514.00.

Dell Technologies (NYSE:DELL - Get Free Report) last released its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 EPS for the quarter, beating the consensus estimate of $4.91 by $2.13. Dell Technologies had a negative return on equity of 366.90% and a net margin of 6.28%.The firm had revenue of $46.97 billion during the quarter, compared to the consensus estimate of $44.89 billion. During the same quarter in the previous year, the company posted $1.70 earnings per share. The company's quarterly revenue was up 57.7% on a year-over-year basis. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. Equities analysts predict that Dell Technologies will post 18.32 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Lynn Vojvodich Radakovich sold 2,022 shares of Dell Technologies stock in a transaction on Monday, August 24th. The stock was sold at an average price of $438.21, for a total transaction of $886,060.62. Following the sale, the director directly owned 25,267 shares in the company, valued at $11,072,252.07. The trade was a 7.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of the business's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction of $31,160,919.24. Following the completion of the transaction, the director directly owned 67,990 shares in the company, valued at $30,836,184.60. This trade represents a 50.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 2,134,674 shares of company stock valued at $870,637,926. 41.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. California State Teachers Retirement System raised its stake in Dell Technologies by 41,141.5% in the 2nd quarter. California State Teachers Retirement System now owns 198,605,353 shares of the technology company's stock valued at $85,690,266,000 after acquiring an additional 198,123,786 shares during the period. State Street Corp lifted its stake in shares of Dell Technologies by 1.8% during the 4th quarter. State Street Corp now owns 14,715,998 shares of the technology company's stock valued at $1,852,450,000 after buying an additional 265,740 shares in the last quarter. Bank of America Corp DE boosted its holdings in Dell Technologies by 7.6% in the 1st quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company's stock worth $2,362,624,000 after buying an additional 1,011,101 shares during the period. Geode Capital Management LLC grew its stake in Dell Technologies by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 7,478,732 shares of the technology company's stock valued at $939,808,000 after buying an additional 108,011 shares in the last quarter. Finally, Invesco Ltd. grew its stake in Dell Technologies by 50.4% in the 4th quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company's stock valued at $919,051,000 after buying an additional 2,445,854 shares in the last quarter. Hedge funds and other institutional investors own 76.37% of the company's stock.

Dell Technologies News Roundup

Here are the key news stories impacting Dell Technologies this week:

• Positive Sentiment: Dell reported fiscal Q2 revenue of approximately $47 billion, up 57.7% year over year and above the roughly $44.9 billion consensus estimate. Adjusted earnings of $7.04 per share exceeded expectations near $4.91. Dell again lifts forecasts as AI demand powers record results
• Positive Sentiment: AI-optimized server revenue reached $16.4 billion, doubling year over year. Record AI-server orders of $60.9 billion and a backlog reported at approximately $95 billion provide visibility into future growth. Dell AI Server Momentum Accelerates With Record AI Orders
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $192 billion from $167 billion and adjusted EPS guidance to $25.50 from $17.90. Third-quarter guidance of $49 billion in revenue and $6.50 EPS also sits well above analyst forecasts. Dell Technologies Boosts Fiscal Year Outlook
• Positive Sentiment: Morgan Stanley, Goldman Sachs and Citigroup raised their price targets, signaling that analysts see potential for further earnings estimates and valuation revisions. Dell shares rise as demand jumps for AI servers
• Neutral Sentiment: Dell declared a quarterly dividend of $0.63 per share, payable October 30 to shareholders of record October 20, supporting shareholder returns but offering a relatively modest yield.
• Negative Sentiment: Investors may remain focused on execution risks, including securing scarce components for AI systems, potential server-margin pressure from elevated memory costs, and the need to convert the large backlog into profitable revenue.
• Negative Sentiment: Dell’s sharp prior rally leaves elevated expectations, while broader weakness in technology stocks, higher bond yields and geopolitical-driven oil prices could limit gains. Reported insider activity also shows substantial selling, although such transactions may reflect diversification rather than deteriorating fundamentals.

About Dell Technologies

Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments.

Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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