Dell Technologies (NYSE:DELL) Shares Down 1.6% - Should You Sell?

Key Points

• Dell Technologies shares fell by 1.6%, trading between $126.70 and $128.10, with a significant decline in trading volume of 86% compared to the average.
• The company reported earnings of $1.55 per share, missing the consensus estimate by $0.13, despite a year-over-year revenue increase of 5.1%.
• While analysts have mixed opinions, the consensus rating for Dell Technologies is a "Moderate Buy", with an average price target of $140.06.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) were down 1.6% during trading on Tuesday . The company traded as low as $126.70 and last traded at $128.10. Approximately 1,004,479 shares traded hands during trading, a decline of 86% from the average daily volume of 7,254,134 shares. The stock had previously closed at $130.23.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on DELL shares. TD Cowen increased their price target on shares of Dell Technologies from $120.00 to $125.00 and gave the stock a "hold" rating in a report on Friday, May 30th. Barclays upped their price objective on shares of Dell Technologies from $116.00 to $123.00 and gave the stock an "equal weight" rating in a research report on Friday, May 30th. Citigroup lifted their price target on shares of Dell Technologies from $128.00 to $135.00 and gave the stock a "buy" rating in a research note on Friday, May 30th. KeyCorp started coverage on shares of Dell Technologies in a research note on Thursday, June 26th. They set a "sector weight" rating on the stock. Finally, Evercore ISI reissued an "outperform" rating on shares of Dell Technologies in a research note on Thursday, May 29th. Five analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. According to data from MarketBeat, Dell Technologies currently has a consensus rating of "Moderate Buy" and an average price target of $140.06.

Dell Technologies Price Performance

The firm has a market capitalization of $88.40 billion, a P/E ratio of 20.77, a P/E/G ratio of 1.03 and a beta of 1.02. The firm has a 50-day moving average price of $121.47 and a two-hundred day moving average price of $107.00.

Dell Technologies (NYSE:DELL - Get Free Report) last posted its earnings results on Thursday, May 29th. The technology company reported $1.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.68 by ($0.13). Dell Technologies had a net margin of 4.63% and a negative return on equity of 226.48%. The company had revenue of $23.38 billion during the quarter, compared to analysts' expectations of $23.17 billion. During the same quarter last year, the firm earned $1.27 EPS. Dell Technologies's revenue for the quarter was up 5.1% on a year-over-year basis. Sell-side analysts predict that Dell Technologies Inc. will post 6.93 earnings per share for the current fiscal year.

Dell Technologies Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, August 1st. Stockholders of record on Tuesday, July 22nd were paid a $0.525 dividend. This represents a $2.10 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Tuesday, July 22nd. Dell Technologies's dividend payout ratio is 33.49%.

Insiders Place Their Bets

In other news, insider William F. Scannell sold 91,230 shares of the stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $118.42, for a total value of $10,803,456.60. Following the transaction, the insider owned 56,429 shares in the company, valued at approximately $6,682,322.18. This represents a 61.78% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Michael S. Dell sold 10,000,000 shares of Dell Technologies stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $122.27, for a total value of $1,222,700,000.00. Following the transaction, the chief executive officer directly owned 25,912,241 shares in the company, valued at approximately $3,168,289,707.07. This trade represents a 27.85% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 12,947,063 shares of company stock worth $1,577,559,812. Corporate insiders own 42.00% of the company's stock.

Hedge Funds Weigh In On Dell Technologies

Hedge funds have recently modified their holdings of the company. Vanguard Capital Wealth Advisors increased its holdings in Dell Technologies by 5.9% in the 4th quarter. Vanguard Capital Wealth Advisors now owns 1,800 shares of the technology company's stock worth $207,000 after acquiring an additional 100 shares in the last quarter. Tradewinds Capital Management LLC increased its stake in Dell Technologies by 4.9% during the second quarter. Tradewinds Capital Management LLC now owns 2,130 shares of the technology company's stock worth $261,000 after purchasing an additional 100 shares during the period. Westside Investment Management Inc. increased its stake in shares of Dell Technologies by 84.7% during the second quarter. Westside Investment Management Inc. now owns 218 shares of the technology company's stock worth $27,000 after buying an additional 100 shares during the period. Cary Street Partners Financial LLC boosted its holdings in Dell Technologies by 2.7% in the first quarter. Cary Street Partners Financial LLC now owns 4,335 shares of the technology company's stock valued at $395,000 after purchasing an additional 116 shares in the last quarter. Finally, Blue Trust Inc. boosted its holdings in shares of Dell Technologies by 16.4% in the second quarter. Blue Trust Inc. now owns 882 shares of the technology company's stock valued at $108,000 after acquiring an additional 124 shares during the period. 76.37% of the stock is currently owned by institutional investors and hedge funds.

About Dell Technologies

Dell Technologies Inc designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

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