Dell Technologies (NYSE:DELL) Stock Price Down 1.2% Following Insider Selling

Key Points

• Dell shares fell 1.2% after an insider sale, with Director Lake Group L.L.C. Silver selling 16,679 shares for about $6.61 million.
• Despite the drop, Wall Street remains broadly bullish on Dell: the stock has a consensus rating of “Moderate Buy” and an average price target of $490.38.
• The company’s recent results were strong, as Dell reported earnings and revenue well above expectations, driven by a 87.5% year-over-year revenue increase and continued AI-related demand.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s stock price dropped 1.2% on Wednesday after an insider sold shares in the company. The stock traded as low as $410.76 and last traded at $426.12. Approximately 5,896,298 shares were traded during trading, a decline of 33% from the average session volume of 8,754,243 shares. The stock had previously closed at $431.46.

Specifically, Director Lake Group L.L.C. Silver sold 16,679 shares of the firm's stock in a transaction 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 sale was disclosed in a filing with the SEC, which is available at this link.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on DELL shares. Citigroup initiated coverage on Dell Technologies in a research report on Monday, June 1st. They set an "outperform" rating for the company. UBS Group set a $700.00 target price on shares of Dell Technologies in a report on Friday, May 29th. Melius Research set a $565.00 price objective on shares of Dell Technologies in a research report on Friday, May 29th. Wells Fargo & Company increased their price objective on shares of Dell Technologies from $270.00 to $505.00 and gave the company an "overweight" rating in a research note on Friday, May 29th. Finally, Loop Capital upped their price target on shares of Dell Technologies from $150.00 to $550.00 and gave the stock a "buy" rating in a report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $490.38.

Dell Technologies News Summary

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

• Positive Sentiment: Investors are rotating into Dell as a perceived winner from the Super Micro Computer investigation, with several reports saying Dell could gain share as a cleaner AI server supplier. Dell Stock Gets a ‘Slam Dunk’ as Super Micro Faces Taiwan Office Raid Over Alleged Nvidia Chip Smuggling
• Positive Sentiment: Dell is also getting a boost from continued AI demand, including a new PowerStore Elite launch in India aimed at enterprise AI storage and lower cloud dependence. Dell launches AI-focused PowerStore Elite storage platform in India as enterprise AI infrastructure race heats up
• Positive Sentiment: Recent commentary remains constructive, with some analysts and media arguing Dell still has upside after its huge rally because AI server revenue continues to expand. Dell Stock Price Prediction: The Case for 20%+ Upside
• Neutral Sentiment: Dell completed its redomestication to Texas corporation status, a corporate structure update that is important administratively but unlikely to be a major near-term stock driver. Dell Completes Redomestication to Texas Corporation Status
• Negative Sentiment: Some coverage warns that Dell’s AI boom is pressuring margins, with gross profit declining as lower-margin AI server sales make up a larger share of revenue. Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
• Negative Sentiment: A recent director stock sale may add some caution after the stock’s sharp run-up, even though insider sales do not always signal deteriorating fundamentals. Dell Technologies Inc. NYSE: DELL - Get Free Report

Dell Technologies Price Performance

The company has a market cap of $276.17 billion, a price-to-earnings ratio of 33.85, a price-to-earnings-growth ratio of 0.89 and a beta of 1.30. The business's fifty day moving average price is $320.57 and its 200 day moving average price is $202.85.

Dell Technologies (NYSE:DELL - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The technology company reported $4.86 earnings per share for the quarter, beating analysts' consensus estimates of $2.96 by $1.90. The business had revenue of $43.84 billion during the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same period in the prior year, the business posted $1.55 earnings per share. 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, equities research analysts anticipate that Dell Technologies Inc. will post 17.74 EPS for the current year.

Dell Technologies Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Tuesday, July 21st will be issued a $0.63 dividend. The ex-dividend date is Tuesday, July 21st. This represents a $2.52 annualized dividend and a yield of 0.6%. Dell Technologies's dividend payout ratio is presently 20.02%.

Institutional Trading of Dell Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in shares of Dell Technologies during the fourth quarter worth $607,349,000. Wellington Management Group LLP raised its position in shares of Dell Technologies by 4,279.1% in the 3rd quarter. Wellington Management Group LLP now owns 3,005,776 shares of the technology company's stock worth $426,129,000 after acquiring an additional 2,937,137 shares in the last quarter. Invesco Ltd. lifted its stake in shares of Dell Technologies by 50.4% in the 4th quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company's stock valued at $919,051,000 after purchasing an additional 2,445,854 shares during the period. Michael & Susan Dell Foundation lifted its stake in shares of Dell Technologies by 533.3% in the 4th quarter. Michael & Susan Dell Foundation now owns 2,682,335 shares of the technology company's stock valued at $337,652,000 after purchasing an additional 2,258,797 shares during the period. Finally, Franklin Resources Inc. boosted its position in shares of Dell Technologies by 541.9% during 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. Institutional investors and hedge funds own 76.37% of the company's stock.

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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