Dell Technologies (NYSE:DELL) Stock Price Down 1.8% on Insider Selling

Key Points

• Dell Technologies shares fell 1.8% in midday trading after a series of insider sales, with the stock trading as low as $418.53 and below the prior close of $434.97.
• Multiple Dell directors linked to Silver Lake sold large blocks of stock on July 8, including sales worth more than $15.8 million, $31.1 million, and $27.0 million, each cutting their ownership stakes by roughly half or more.
• Despite the stock move, Wall Street remains upbeat: Dell has a Moderate Buy consensus rating and an average target price of $492.76, while its latest quarterly results beat expectations on both earnings and revenue.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) dropped 1.8% during mid-day trading on Monday following insider selling activity. The company traded as low as $418.53 and last traded at $427.24. Approximately 4,541,641 shares were traded during mid-day trading, a decline of 48% from the average daily volume of 8,651,605 shares. The stock had previously closed at $434.97.

Specifically, Director Silver Lake Partners V. De (Aiv sold 37,003 shares of the stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $427.15, for a total transaction of $15,805,831.45. Following the transaction, the director directly owned 29,840 shares in the company, valued at approximately $12,746,156. This represents a 55.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Silver Lake Partners Iv, L.P. sold 72,854 shares of the firm's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $427.15, for a total value of $31,119,586.10. Following the transaction, the director directly owned 46,192 shares in the company, valued at approximately $19,730,912.80. This represents a 61.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In other Dell Technologies news, Director Spv-2 L.P. Sl sold 63,095 shares of the company's stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $427.15, for a total value of $26,951,029.25. Following the completion of the sale, the director owned 60,551 shares of the company's stock, valued at $25,864,359.65. This represents a 51.03% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Wall Street Analyst Weigh In

Several research firms have commented on DELL. The Goldman Sachs Group lifted their price target on shares of Dell Technologies from $230.00 to $500.00 and gave the stock a "buy" rating in a research note on Monday, June 1st. Roth Capital initiated coverage on shares of Dell Technologies in a report on Friday, May 29th. They set a "buy" rating on the stock. Guggenheim upgraded shares of Dell Technologies to a "buy" rating in a research report on Monday, June 1st. Piper Sandler boosted their price target on shares of Dell Technologies from $167.00 to $497.00 and gave the stock an "overweight" rating in a research note on Friday, May 29th. Finally, Royal Bank Of Canada started coverage on Dell Technologies in a research note on Friday, May 29th. They set an "outperform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Dell Technologies presently has an average rating of "Moderate Buy" and a consensus target price of $492.76.

Dell Technologies Stock Performance

The firm has a market cap of $276.90 billion, a PE ratio of 33.93, a PEG ratio of 0.93 and a beta of 1.31. The company's 50-day simple moving average is $354.07 and its two-hundred day simple moving average is $219.22.

Dell Technologies (NYSE:DELL - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $43.84 billion for the quarter, compared to analysts' expectations of $35.74 billion. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The company's revenue for the quarter was up 87.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $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. On average, analysts expect that Dell Technologies Inc. will post 17.74 EPS for the current year.

Dell Technologies Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, July 21st will be given a dividend of $0.63 per share. The ex-dividend date of this dividend is Tuesday, July 21st. This represents a $2.52 dividend on an annualized basis and a yield of 0.6%. Dell Technologies's dividend payout ratio is presently 20.02%.

Institutional Investors Weigh In On Dell Technologies

A number of large investors have recently made changes to their positions in DELL. Brighton Jones LLC lifted its stake in Dell Technologies by 42.7% in the fourth quarter. Brighton Jones LLC now owns 3,011 shares of the technology company's stock worth $347,000 after acquiring an additional 901 shares during the period. Sivia Capital Partners LLC purchased a new position in shares of Dell Technologies during the second quarter valued at about $328,000. Marshall Wace LLP bought a new position in Dell Technologies in the second quarter worth about $809,000. Gamco Investors INC. ET AL lifted its holdings in Dell Technologies by 30.2% in the second quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company's stock worth $819,000 after buying an additional 1,550 shares during the period. Finally, NewEdge Advisors LLC boosted its position in Dell Technologies by 147.2% during the 2nd quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company's stock valued at $7,112,000 after acquiring an additional 34,538 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.

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