Royal Bank Of Canada Initiates Coverage on Dell Technologies (NYSE:DELL)

Key Points

• Royal Bank of Canada initiated coverage of Dell Technologies with an “outperform” rating and a $640 price target, implying 26.2% upside from the prior close.
• Dell reported strong quarterly results, with $7.04 adjusted EPS versus $4.91 expected and revenue of $46.97 billion, up 57.7% year over year. Analysts broadly remain bullish, with a consensus “Moderate Buy” rating and $560.24 average price target.
• Strong AI-server demand supports Dell’s outlook, but investors face risks from the stock’s elevated valuation, recent share-price volatility and substantial insider selling totaling about $607 million over the past 90 days.

Investment analysts at Royal Bank Of Canada assumed coverage on shares of Dell Technologies (NYSE:DELL - Get Free Report) in a research report issued on Thursday, Benzinga reports. The firm set an "outperform" rating and a $640.00 price target on the technology company's stock. Royal Bank Of Canada's target price indicates a potential upside of 26.20% from the stock's previous close.

DELL has been the subject of several other research reports. Argus boosted their price target on Dell Technologies from $200.00 to $460.00 and gave the company a "buy" rating in a report on Friday, May 29th. Morgan Stanley raised their price objective on Dell Technologies from $434.00 to $499.00 and gave the stock an "equal weight" rating in a research note on Wednesday, September 2nd. Wells Fargo & Company lifted their price objective on Dell Technologies from $505.00 to $545.00 and gave the company an "overweight" rating in a research report on Friday, August 14th. TD Cowen increased their target price on shares of Dell Technologies from $450.00 to $500.00 and gave the stock a "hold" rating in a report on Wednesday, September 2nd. Finally, CLSA raised shares of Dell Technologies to an "outperform" rating in a report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $560.24.

Dell Technologies Stock Performance

Shares of DELL stock traded down $28.12 during mid-day trading on Thursday, hitting $507.13. The company's stock had a trading volume of 5,801,844 shares, compared to its average volume of 8,344,363. Dell Technologies has a 52-week low of $110.22 and a 52-week high of $562.99. The business has a 50-day moving average price of $445.73 and a 200 day moving average price of $319.04. The stock has a market cap of $328.68 billion, a price-to-earnings ratio of 29.43, a PEG ratio of 0.55 and a beta of 1.34.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, beating analysts' consensus estimates of $4.91 by $2.13. The business had revenue of $46.97 billion during the quarter, compared to analyst estimates of $44.89 billion. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The company's quarterly revenue was up 57.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.70 EPS. 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 research analysts predict that Dell Technologies will post 25.14 EPS for the current fiscal year.

Insider Buying and Selling at Dell Technologies

In other Dell Technologies news, Director Spv-2 L.P. Sl sold 49,946 shares of Dell Technologies stock in a transaction on Friday, September 4th. The shares were sold at an average price of $521.34, for a total value of $26,038,847.64. Following the completion of the transaction, the director directly owned 97,315 shares of the company's stock, valued at $50,734,202.10. This trade represents a 33.92% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Silver Lake Partners Iv, L.P. sold 37,500 shares of the company's stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $520.71, for a total value of $19,526,625.00. Following the sale, the director owned 1,356,628 shares in the company, valued at approximately $706,409,765.88. This trade represents a 2.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,301,517 shares of company stock worth $607,019,380. Company insiders own 41.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. ProShare Advisors LLC lifted its position in Dell Technologies by 10.5% in the 4th quarter. ProShare Advisors LLC now owns 80,686 shares of the technology company's stock valued at $10,157,000 after purchasing an additional 7,642 shares during the last quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund acquired a new stake in shares of Dell Technologies in the fourth quarter valued at approximately $23,332,000. Plato Investment Management Ltd acquired a new stake in shares of Dell Technologies in the second quarter valued at approximately $5,913,000. Gabelli Funds LLC raised its holdings in shares of Dell Technologies by 49.0% during the first quarter. Gabelli Funds LLC now owns 46,094 shares of the technology company's stock valued at $7,565,000 after buying an additional 15,150 shares during the last quarter. Finally, MUFG Securities EMEA plc boosted its position in shares of Dell Technologies by 112.9% during the fourth quarter. MUFG Securities EMEA plc now owns 12,356 shares of the technology company's stock worth $1,555,000 after buying an additional 6,553 shares during the period. 76.37% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Dell Technologies

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

• Positive Sentiment: Dell reported approximately $60.9 billion in AI-server orders and a roughly $95 billion backlog. The figures reinforce expectations that AI infrastructure demand will remain strong, although investors are watching how quickly the backlog converts into revenue and cash flow. Dell AI-server orders and backlog
• Positive Sentiment: Recent quarterly results remain supportive: Dell delivered $7.04 in adjusted earnings per share versus the $4.91 consensus estimate, while revenue reached $46.97 billion, up 57.7% year over year. Analysts have continued to raise price targets and maintain generally bullish ratings. Dell AI-server orders and earnings
• Positive Sentiment: CEO Michael Dell said the structural shortage of AI-driven computing capacity could worsen in 2027, supporting the view that demand may extend beyond the current upgrade cycle. Dell is also positioning itself for enterprise and on-premise AI deployments, not only hyperscale cloud spending. Dell CEO on AI compute shortage
• Neutral Sentiment: Dell plans to raise about $4 billion through a bond offering to refinance debt while supporting its AI-server expansion. The financing may improve flexibility, but investors will monitor interest expense, leverage and returns on infrastructure investment. Dell bond offering
• Negative Sentiment: AI-server stocks are retreating as the recent rally unwinds, with no specific company announcement cited as the catalyst. Dell’s shares have risen more than 300% over the past year, increasing the likelihood of profit-taking and making the stock more sensitive to any disappointment.
• Negative Sentiment: Insiders, including Silver Lake-affiliated directors and Dell’s chief marketing officer, have sold substantial amounts of stock near recent highs. The transactions may reflect diversification, but they add a cautionary signal alongside Dell’s elevated valuation. Dell insider selling

Dell Technologies Company Profile

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.

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