Dell Technologies (NYSE:DELL) Shares Down 6.6% - Should You Sell?

Key Points

• Dell shares fell 6.6% on Monday after UBS downgraded the stock to Neutral from Buy, arguing that the recent AI-driven rally may be nearing its peak.
• Despite the downgrade, analysts still point to strong AI infrastructure demand and Dell’s recent win helping build the Pangea 5 supercomputer for TotalEnergies as evidence of ongoing growth potential.
• Dell’s latest earnings showed better-than-expected results, with revenue of $33.38 billion and EPS of $3.89 beating estimates, while the company also raised its quarterly dividend to $0.63 per share.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) fell 6.6% during trading on Monday . The company traded as low as $246.30 and last traded at $243.3710. 2,315,336 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 8,022,943 shares. The stock had previously closed at $260.46.

Key Dell Technologies News

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

• Neutral Sentiment: UBS downgraded Dell Technologies (DELL) to Neutral from Buy, saying the stock’s explosive rally and AI-driven gains may be nearing a peak, even though the firm remains well positioned in AI infrastructure demand. Dell has been on fire this year. Why UBS is downgrading the PC maker
• Neutral Sentiment: Another report echoed the UBS view, noting that after a roughly 170% surge over the past year, Dell may have limited room for additional upside despite continued strength in AI server demand. Dell gets downgraded by UBS as analysts see little room for upside following recent stock run
• Positive Sentiment: Dell continues to benefit from investor enthusiasm around AI infrastructure, and the company recently won a project with TotalEnergies to help build the Pangea 5 supercomputer for seismic imaging and AI research, reinforcing its role in high-performance computing. Dell’s Pangea 5 Win Highlights AI And Energy Computing Ambitions

Analysts Set New Price Targets

A number of brokerages have commented on DELL. The Goldman Sachs Group increased their price target on shares of Dell Technologies from $215.00 to $230.00 in a research note on Thursday, April 30th. Piper Sandler dropped their price objective on shares of Dell Technologies from $172.00 to $167.00 and set an "overweight" rating on the stock in a research report on Friday, February 27th. Weiss Ratings raised shares of Dell Technologies from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, April 16th. JPMorgan Chase & Co. increased their price objective on shares of Dell Technologies from $165.00 to $205.00 and gave the company an "overweight" rating in a research report on Thursday, April 16th. Finally, Barclays increased their price objective on shares of Dell Technologies from $148.00 to $168.00 and gave the company an "overweight" rating in a research report on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $190.84.

Dell Technologies Price Performance

The firm has a market capitalization of $159.55 billion, a P/E ratio of 28.34, a price-to-earnings-growth ratio of 1.06 and a beta of 0.99. The business's 50-day moving average is $175.62 and its 200 day moving average is $146.04.

Dell Technologies (NYSE:DELL - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The technology company reported $3.89 EPS for the quarter, topping analysts' consensus estimates of $3.53 by $0.36. Dell Technologies had a net margin of 5.23% and a negative return on equity of 236.90%. The business had revenue of $33.38 billion for the quarter, compared to analyst estimates of $31.60 billion. During the same period last year, the firm earned $2.68 earnings per share. Dell Technologies's revenue for the quarter was up 39.5% compared to the same quarter last year. Dell Technologies has set its Q1 2027 guidance at 2.900-2.900 EPS and its FY 2027 guidance at 12.900-12.900 EPS. Analysts anticipate that Dell Technologies Inc. will post 11.9 EPS for the current fiscal year.

Dell Technologies Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 1st. Investors of record on Tuesday, April 21st were given a dividend of $0.63 per share. This is a positive change from Dell Technologies's previous quarterly dividend of $0.53. This represents a $2.52 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Tuesday, April 21st. Dell Technologies's payout ratio is 28.90%.

Insider Transactions at Dell Technologies

In other Dell Technologies news, Director Ellen Jamison Kullman sold 150,346 shares of the stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $145.13, for a total transaction of $21,819,714.98. Following the sale, the director directly owned 65,662 shares in the company, valued at $9,529,526.06. This represents a 69.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director V (Gp) L.L.C. Slta sold 510,000 shares of the stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $146.83, for a total transaction of $74,883,300.00. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 3,571,688 shares of company stock worth $576,654,105. 42.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Dell Technologies

A number of large investors have recently bought and sold shares of DELL. Norges Bank acquired a new stake in Dell Technologies during the fourth quarter worth about $607,349,000. Wellington Management Group LLP grew its stake in Dell Technologies by 4,279.1% during the third quarter. Wellington Management Group LLP now owns 3,005,776 shares of the technology company's stock worth $426,129,000 after buying an additional 2,937,137 shares in the last quarter. Invesco Ltd. grew its stake in Dell Technologies by 50.4% during the fourth quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company's stock worth $919,051,000 after buying an additional 2,445,854 shares in the last quarter. Michael & Susan Dell Foundation grew its stake in Dell Technologies by 533.3% during the fourth quarter. Michael & Susan Dell Foundation now owns 2,682,335 shares of the technology company's stock worth $337,652,000 after buying an additional 2,258,797 shares in the last quarter. Finally, Franklin Resources Inc. boosted its stake in shares of Dell Technologies by 541.9% in the 3rd quarter. Franklin Resources Inc. now owns 1,996,557 shares of the technology company's stock valued at $283,052,000 after purchasing an additional 1,685,529 shares in the last quarter. 76.37% of the stock is currently owned by institutional investors and hedge funds.

Dell Technologies Company Profile

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.

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