Dell Technologies (NYSE:DELL) Shares Gap Down on Analyst Downgrade

Key Points

• Dell Technologies shares experienced a significant drop, opening at $124.03 after being downgraded by Fox Advisors from an outperform to an equal weight rating.
• The company has a market capitalization of $81.73 billion and reported a revenue of $29.78 billion for the last quarter, exceeding analyst expectations.
• Insider trading activity included a sale of 50,000 shares by Director William D. Green, reducing his ownership by 52.61%.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) gapped down prior to trading on Friday after Fox Advisors downgraded the stock from an outperform rating to an equal weight rating. The stock had previously closed at $134.05, but opened at $124.03. Dell Technologies shares last traded at $122.17, with a volume of 4,839,282 shares traded.

DELL has been the topic of several other reports. Wall Street Zen lowered shares of Dell Technologies from a "buy" rating to a "hold" rating in a research note on Monday, July 14th. Citigroup increased their target price on shares of Dell Technologies from $135.00 to $160.00 and gave the stock a "buy" rating in a research note on Monday, August 11th. Mizuho increased their target price on shares of Dell Technologies from $140.00 to $145.00 and gave the stock an "outperform" rating in a research note on Monday, May 19th. JPMorgan Chase & Co. increased their target price on shares of Dell Technologies from $125.00 to $145.00 and gave the stock an "overweight" rating in a research note on Thursday, July 17th. Finally, Susquehanna restated a "neutral" rating and set a $125.00 price target on shares of Dell Technologies in a research report on Wednesday, August 13th. Fifteen research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $145.24.

Insider Buying and Selling

In other Dell Technologies news, Director William D. Green sold 50,000 shares of Dell Technologies stock in a transaction on Monday, August 11th. The stock was sold at an average price of $140.00, for a total value of $7,000,000.00. Following the sale, the director owned 45,045 shares in the company, valued at $6,306,300. The trade was a 52.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director V (Gp) L.L.C. Slta sold 6,086 shares of Dell Technologies stock in a transaction on Thursday, July 17th. The shares were sold at an average price of $123.50, for a total value of $751,621.00. Following the completion of the sale, the director owned 986,261 shares in the company, valued at $121,803,233.50. This represents a 0.61% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 12,989,063 shares of company stock valued at $1,583,673,412. 42.00% of the stock is currently owned by company insiders.

Institutional Trading of Dell Technologies

A number of hedge funds and other institutional investors have recently bought and sold shares of DELL. Smallwood Wealth Investment Management LLC acquired a new stake in Dell Technologies in the first quarter valued at $25,000. Winnow Wealth LLC acquired a new stake in Dell Technologies in the second quarter valued at $25,000. N.E.W. Advisory Services LLC acquired a new stake in Dell Technologies in the first quarter valued at $26,000. Cheviot Value Management LLC acquired a new stake in Dell Technologies in the first quarter valued at $27,000. Finally, Flaharty Asset Management LLC purchased a new position in shares of Dell Technologies during the first quarter worth about $27,000. 76.37% of the stock is currently owned by institutional investors and hedge funds.

Dell Technologies Stock Down 10.2%

The company has a market cap of $81.73 billion, a PE ratio of 19.33, a price-to-earnings-growth ratio of 0.92 and a beta of 1.02. The firm has a fifty day simple moving average of $129.10 and a 200-day simple moving average of $110.37.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its earnings results on Thursday, August 28th. The technology company reported $2.32 earnings per share for the quarter, topping the consensus estimate of $2.29 by $0.03. Dell Technologies had a net margin of 4.63% and a negative return on equity of 226.48%. The business had revenue of $29.78 billion during the quarter, compared to the consensus estimate of $29.14 billion. During the same quarter in the prior year, the firm earned $1.89 earnings per share. The business's quarterly revenue was up 19.0% compared to the same quarter last year. Dell Technologies has set its Q3 2026 guidance at 2.450-2.450 EPS. FY 2026 guidance at 9.550-9.550 EPS. Equities research analysts forecast that Dell Technologies Inc. will post 6.93 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 1st. Investors of record on Tuesday, July 22nd were given a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Tuesday, July 22nd. Dell Technologies's dividend payout ratio (DPR) is 33.49%.

Dell Technologies Company Profile

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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