Dell Technologies (NYSE:DELL) Shares Up 2.1% - What's Next?

Key Points

• Dell shares rose 2.1% to $494.51, supported by strong AI-server demand signals from Lenovo and Super Micro Computer, as well as bullish technical momentum.
• Dell’s latest quarterly results significantly exceeded expectations, with revenue up 87.5% year over year to $43.84 billion and EPS of $4.86 versus the $2.96 consensus estimate. The company is scheduled to report fiscal second-quarter 2027 results on September 3.
• Analysts maintain a broadly positive outlook, with a “Moderate Buy” consensus and an average price target of $492.43, though margin pressure from rapid AI-server growth and substantial insider selling could increase downside risk.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s stock price traded up 2.1% during trading on Thursday . The company traded as high as $514.00 and last traded at $494.51. 8,024,830 shares traded hands during trading, a decline of 4% from the average session volume of 8,320,849 shares. The stock had previously closed at $484.50.

Key Headlines Impacting Dell Technologies

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

• Positive Sentiment: Strong Lenovo results reinforced the AI-server demand outlook. Lenovo reported an AI server pipeline of approximately $54 billion, up 157%, suggesting continued spending on Nvidia-powered data-center infrastructure. Investors viewed the results as a positive read-through for Dell’s server business. Dell Rallies After Lenovo AI Server Pipeline Hits $54 Billion
• Positive Sentiment: Peer performance added to the momentum. Better-than-expected results and outlooks from Lenovo and Super Micro Computer, including Super Micro’s record backlog and robust AI-server guidance, lifted sentiment across the hardware sector and highlighted strong infrastructure demand. Super Micro Climbs on Record Backlog
• Positive Sentiment: Dell’s own operating momentum remains a key support. The company recently reported quarterly revenue of $43.84 billion, up 87.5% year over year, and earnings per share of $4.86 versus the $2.96 consensus estimate. Its reported server backlog and rapid AI-related growth are improving revenue visibility and encouraging analysts to expect another earnings beat. Will Dell Beat Estimates Again?
• Positive Sentiment: Technical momentum is attracting buyers. Coverage indicates DELL broke through important resistance and moved to a new all-time high, reinforcing bullish sentiment and potentially prompting additional momentum-focused buying. Did Dell Break Out?
• Neutral Sentiment: Dell is scheduled to report fiscal second-quarter 2027 results on September 3. The upcoming report could validate the AI-server growth narrative, but it also creates an event risk if results or guidance fall short of elevated expectations. Dell Earnings Scheduled for September 3
• Negative Sentiment: Some coverage cautions that rapid AI-server growth may compress margins, while reported insider activity has consisted predominantly of sales rather than purchases. These factors could limit upside or increase volatility after the stock’s substantial advance.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Bank of America increased their target price on Dell Technologies from $280.00 to $500.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Sanford C. Bernstein upped their price target on Dell Technologies from $280.00 to $500.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Zacks Research upgraded shares of Dell Technologies from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, April 21st. Jefferies Financial Group downgraded shares of Dell Technologies to a "hold" rating in a report on Monday, June 1st. Finally, Argus lifted their price target on shares of Dell Technologies from $200.00 to $460.00 and gave the company a "buy" rating in a report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $492.43.

Dell Technologies Stock Up 2.1%

The business's fifty day moving average is $418.45 and its two-hundred day moving average is $268.57. The stock has a market capitalization of $320.50 billion, a PE ratio of 39.28, a price-to-earnings-growth ratio of 0.94 and a beta of 1.33.

Dell Technologies (NYSE:DELL - Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.96 by $1.90. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The company had revenue of $43.84 billion for the quarter, compared to the consensus estimate of $35.74 billion. During the same quarter in the prior year, the firm earned $1.55 earnings per share. Dell Technologies's revenue was up 87.5% on a year-over-year basis. 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. Sell-side analysts expect that Dell Technologies Inc. will post 17.77 EPS for the current fiscal year.

Dell Technologies Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, July 21st were given a $0.63 dividend. The ex-dividend date was Tuesday, July 21st. This represents a $2.52 annualized dividend and a yield of 0.5%. Dell Technologies's dividend payout ratio (DPR) is currently 20.02%.

Insider Buying and Selling

In other news, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of the firm'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 $31,160,919.24. Following the completion of the sale, the director directly owned 67,990 shares of the company's stock, valued at $30,836,184.60. This trade represents a 50.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Lake Group L.L.C. Silver sold 16,679 shares of Dell Technologies stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $396.37, for a total value of $6,611,055.23. The disclosure for this sale is available in the SEC filing. Over 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.

Hedge Funds Weigh In On Dell Technologies

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in shares of Dell Technologies by 4.5% during the fourth quarter. Vanguard Group Inc. now owns 31,441,451 shares of the technology company's stock worth $3,957,850,000 after purchasing an additional 1,355,841 shares during the last quarter. State Street Corp grew its holdings in shares of Dell Technologies by 1.8% in the fourth quarter. State Street Corp now owns 14,715,998 shares of the technology company's stock worth $1,852,450,000 after purchasing an additional 265,740 shares during the last quarter. Bank of America Corp DE increased its stake in Dell Technologies by 7.6% in the 1st quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company's stock worth $2,362,624,000 after buying an additional 1,011,101 shares during the period. Geode Capital Management LLC boosted its position in Dell Technologies by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 7,478,732 shares of the technology company's stock valued at $939,808,000 after buying an additional 108,011 shares during the period. Finally, Invesco Ltd. grew its stake in Dell Technologies by 50.4% in the 4th quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company's stock worth $919,051,000 after acquiring an additional 2,445,854 shares in the last quarter. 76.37% of the stock is currently owned by institutional investors.

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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