Dell Technologies (NYSE:DELL) Shares Up 1.7% - Here's Why

Key Points

• Dell shares rose 1.7% to $441.98 amid investor interest in its exposure to expanding AI data-center infrastructure, including servers, storage, networking, power and cooling.
• Dell is pursuing AI growth through products such as its 9.83-petabyte ObjectScale storage system and partnerships supporting enterprise digital transformation.
• Despite strong recent earnings and revenue growth, sentiment is mixed: the consensus rating remains “Moderate Buy” with a $496.71 price target, while one analyst downgraded the stock over valuation and high expectations ahead of earnings.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) were up 1.7% on Friday . The company traded as high as $444.43 and last traded at $441.98. Approximately 3,661,664 shares traded hands during mid-day trading, a decline of 55% from the average daily volume of 8,186,399 shares. The stock had previously closed at $434.78.

Dell Technologies News Roundup

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

• Positive Sentiment: Analyst coverage highlights Dell as a potential beneficiary of accelerating AI data-center investment beyond GPUs, including demand for servers, networking, storage, optics, power and cooling. The Zacks Analyst Blog Highlights Dell, Celestica, Lumentum and Vertiv
• Positive Sentiment: Dell is targeting AI-storage growth with an ObjectScale system offering up to 9.83 petabytes in a 2U configuration, potentially strengthening its position in enterprise AI infrastructure. Dell Targets AI Storage Growth With 9.83PB ObjectScale System
• Positive Sentiment: A memorandum of understanding with Emarat is intended to accelerate AI adoption and digital transformation, creating potential long-term enterprise demand for Dell’s technology and services. Emarat, Dell Technologies collaborate to accelerate AI-enabled transformation
• Positive Sentiment: Renewing Dell’s Team Liquid partnership could support Alienware’s gaming brand as it competes with HP and Corsair in premium PCs and peripherals. Can Team Liquid Partnership Strengthen DELL Against HPQ and CRSR?
• Neutral Sentiment: A covered-call strategy is being promoted as a way to generate substantial income from DELL shares, but it caps upside if the stock rises above the option strike and is not a change to Dell’s fundamentals. Own DELL Stock? Here Is How To Collect 21% a Year On It
• Negative Sentiment: An analyst downgraded Dell ahead of its second-quarter earnings preview, indicating concern that high expectations or valuation may limit further gains. I’m Downgrading Dell Ahead Of Q2 Earnings
• Negative Sentiment: Dell recently fell sharply even as the broader market advanced, highlighting elevated volatility and profit-taking risk after a major rally. Dell Technologies Stock Slides as Market Rises

Wall Street Analyst Weigh In

A number of research firms have issued reports on DELL. Citic Securities increased their price target on Dell Technologies from $160.00 to $505.00 and gave the stock a "buy" rating in a report on Monday, June 1st. Royal Bank Of Canada began coverage on shares of Dell Technologies in a research report on Friday, May 29th. They set an "outperform" rating on the stock. Barclays lowered shares of Dell Technologies from an "overweight" rating to a "reduce" rating in a research note on Friday, May 29th. JPMorgan Chase & Co. raised their price target on shares of Dell Technologies from $280.00 to $500.00 and gave the stock an "overweight" rating in a report on Friday, May 29th. Finally, HSBC upgraded shares of Dell Technologies to a "buy" rating in a report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $496.71.

Dell Technologies Price Performance

The company has a fifty day moving average price of $427.38 and a 200 day moving average price of $283.43. The stock has a market cap of $286.45 billion, a P/E ratio of 35.11, a P/E/G ratio of 0.91 and a beta of 1.33.

Dell Technologies (NYSE:DELL - Get Free Report) last issued its earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.96 by $1.90. The company had revenue of $43.84 billion for the quarter, compared to analysts' expectations of $35.74 billion. Dell Technologies had a negative return on equity of 366.90% and a net margin of 6.28%.Dell Technologies's quarterly revenue was up 87.5% compared to the same quarter last year. During the same period last year, the business earned $1.55 EPS. Dell Technologies has set its FY 2027 guidance at 17.900-17.900 EPS and its Q2 2027 guidance at 4.800-4.800 EPS. As a group, sell-side analysts expect that Dell Technologies Inc. will post 18.17 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 31st. Stockholders of record on Tuesday, July 21st were issued a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Tuesday, July 21st. Dell Technologies's dividend payout ratio (DPR) is currently 20.02%.

Insider Buying and Selling at Dell Technologies

In other Dell Technologies news, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of Dell Technologies stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction of $31,160,919.24. Following the completion of the transaction, the director owned 67,990 shares in the company, valued at approximately $30,836,184.60. The trade was a 50.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Spv-2 L.P. Sl sold 59,492 shares of the business's stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total value of $26,982,001.68. Following the sale, the director directly owned 89,222 shares of the company's stock, valued at $40,465,745.88. This represents a 40.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 3,434,758 shares of company stock valued at $1,448,870,683. Insiders own 41.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of DELL. Commonwealth Retirement Investments LLC bought a new position in Dell Technologies during the 4th quarter valued at $25,000. Rossby Financial LCC grew its stake in shares of Dell Technologies by 968.4% in the 4th quarter. Rossby Financial LCC now owns 203 shares of the technology company's stock worth $26,000 after acquiring an additional 184 shares in the last quarter. Navalign LLC purchased a new stake in shares of Dell Technologies in the fourth quarter valued at about $29,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Dell Technologies in the fourth quarter valued at about $29,000. Finally, WealthCollab LLC lifted its position in shares of Dell Technologies by 82.0% during the second quarter. WealthCollab LLC now owns 253 shares of the technology company's stock valued at $31,000 after purchasing an additional 114 shares in the last quarter. Hedge funds and other institutional investors own 76.37% of the company's stock.

About Dell Technologies

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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