Dell Technologies (NYSE:DELL) Shares Gap Up - Still a Buy?

Key Points

• Dell shares jumped sharply after opening above the prior close, with the stock trading near recent highs as investors reacted to upbeat sentiment around the company.
• Analysts remain constructive on Dell, citing strong AI server demand, improving infrastructure revenue, and expectations that the company could beat earnings and raise guidance ahead of its May 28 report.
• Recent results were solid, with Dell beating Q4 earnings and revenue estimates and posting 39.5% revenue growth year over year; the company also increased its quarterly dividend from $0.53 to $0.63.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $252.80, but opened at $268.10. Dell Technologies shares last traded at $289.4860, with a volume of 2,881,285 shares changing hands.

Dell Technologies News Summary

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

• Positive Sentiment: Analysts and market commentators continue to frame Dell as a likely earnings beat, citing strong AI server demand, improving infrastructure solutions revenue, and the potential for management to raise full-year guidance. Dell Technologies set to deliver beat and raise for Q1, says Bank of America
• Positive Sentiment: Unusual options activity also points to bullish speculation, with traders buying far more call options than normal, suggesting some investors are positioning for more upside.
• Positive Sentiment: Coverage ahead of the May 28 earnings release says Dell could benefit from continued AI momentum and strong PC trends, while the stock is already trading near its 52-week high. Dell (DELL) Stock Approaches 52-Week Peak Ahead of Crucial Q1 Earnings Report
• Positive Sentiment: Bank of America and other analysts have reiterated constructive views on Dell, arguing that the company is well positioned for the next phase of enterprise AI spending. Dell Technologies seen as 'well positioned' for next phase of enterprise AI: Evercore
• Neutral Sentiment: Dell also announced that an Infrastructure Solutions Group executive will present at an investor conference in June, which keeps the company in front of shareholders but is not a major near-term catalyst. Dell Technologies to Present at Investor Conference in June

Analyst Upgrades and Downgrades

DELL has been the topic of several research analyst reports. Evercore boosted their price objective on shares of Dell Technologies from $240.00 to $270.00 and gave the company an "outperform" rating in a report on Tuesday. Daiwa Securities Group boosted their price objective on Dell Technologies from $150.00 to $170.00 and gave the stock an "outperform" rating in a research report on Friday, March 6th. Zacks Research raised Dell Technologies from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 21st. Wall Street Zen downgraded Dell Technologies from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 16th. Finally, Barclays upped their price target on Dell Technologies from $148.00 to $168.00 and gave the company an "overweight" rating in a report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $211.32.

Dell Technologies Stock Up 15.1%

The stock has a fifty day moving average of $196.18 and a 200-day moving average of $152.21. The stock has a market capitalization of $187.92 billion, a price-to-earnings ratio of 33.39, a P/E/G ratio of 0.92 and a beta of 0.99.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The technology company reported $3.89 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.53 by $0.36. The firm had revenue of $33.38 billion during the quarter, compared to the consensus estimate of $31.60 billion. Dell Technologies had a negative return on equity of 236.90% and a net margin of 5.23%.The firm's quarterly revenue was up 39.5% compared to the same quarter last year. During the same period in the prior year, the company posted $2.68 earnings per share. 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. On average, equities analysts forecast that Dell Technologies Inc. will post 11.87 EPS for the current fiscal year.

Dell Technologies Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 1st. Stockholders of record on Tuesday, April 21st were issued a $0.63 dividend. The ex-dividend date of this dividend was Tuesday, April 21st. This is an increase from Dell Technologies's previous quarterly dividend of $0.53. This represents a $2.52 annualized dividend and a dividend yield of 0.9%. Dell Technologies's dividend payout ratio is currently 28.90%.

Insiders Place Their Bets

In other news, insider William F. Scannell sold 143,067 shares of the stock in a transaction that occurred on Monday, March 23rd. The stock was sold at an average price of $165.00, for a total value of $23,606,055.00. Following the completion of the sale, the insider directly owned 21,779 shares of the company's stock, valued at approximately $3,593,535. This represents a 86.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Richard Troy Sharp sold 1,538 shares of the stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $149.26, for a total value of $229,561.88. Following the completion of the sale, the chief accounting officer directly owned 8,030 shares of the company's stock, valued at $1,198,557.80. The trade was a 16.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 3,571,688 shares of company stock valued at $576,654,105. 42.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Dell Technologies

Large investors have recently modified their holdings of the company. Commonwealth Retirement Investments LLC purchased a new stake in shares of Dell Technologies during the fourth quarter worth approximately $25,000. Rossby Financial LCC raised its stake in shares of Dell Technologies by 968.4% during the fourth quarter. Rossby Financial LCC now owns 203 shares of the technology company's stock worth $26,000 after purchasing an additional 184 shares during the last quarter. Navalign LLC purchased a new stake in shares of Dell Technologies during the fourth quarter worth approximately $29,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Dell Technologies during the fourth quarter worth approximately $29,000. Finally, WealthCollab LLC raised its stake in shares of Dell Technologies by 82.0% during the second quarter. WealthCollab LLC now owns 253 shares of the technology company's stock worth $31,000 after purchasing an additional 114 shares during the last quarter. 76.37% of the stock is 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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