Dell Technologies (NYSE:DELL) Stock Price Down 2.3% - Here's Why

Key Points

• Dell shares fell 2.3% to approximately $427.57 in Monday trading, despite the stock remaining well above its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $494.67. Recent firms including Citi, Wells Fargo and HSBC raised targets or upgraded the stock.
• Dell reported a strong quarter, with EPS of $4.86 versus the $2.96 consensus and revenue up 87.5% year over year to $43.84 billion. The company also declared a quarterly dividend of $0.63 per share, while insiders have sold more than $1.4 billion of stock over the past 90 days.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s share price dropped 2.3% during trading on Monday . The stock traded as low as $411.87 and last traded at $427.5710. Approximately 4,919,059 shares were traded during mid-day trading, a decline of 42% from the average session volume of 8,506,007 shares. The stock had previously closed at $437.50.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the company. Citigroup upped their target price on Dell Technologies from $475.00 to $515.00 and gave the company a "buy" rating in a research report on Friday. Citic Securities lifted their price target on Dell Technologies from $160.00 to $505.00 and gave the company a "buy" rating in a research note on Monday, June 1st. HSBC upgraded shares of Dell Technologies to a "buy" rating in a research report on Friday, May 29th. Wells Fargo & Company increased their target price on Dell Technologies from $270.00 to $505.00 and gave the company an "overweight" rating in a report on Friday, May 29th. Finally, CLSA upgraded shares of Dell Technologies to an "outperform" rating in a research report on Friday, May 29th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $494.67.

Dell Technologies Trading Down 2.3%

The firm's fifty day moving average is $390.33 and its 200-day moving average is $239.74. The stock has a market capitalization of $277.11 billion, a PE ratio of 33.96, a price-to-earnings-growth ratio of 0.93 and a beta of 1.31.

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

Dell Technologies Announces Dividend

The firm also recently disclosed 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 dividend on an annualized basis and a dividend yield of 0.6%. Dell Technologies's payout ratio is 20.02%.

Insider Buying and Selling

In related 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 shares were sold at an average price of $453.54, for a total value of $31,160,919.24. Following the sale, the director owned 67,990 shares of the company's stock, valued at $30,836,184.60. This trade represents a 50.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Silver Lake Partners V. De (Aiv sold 34,869 shares of Dell Technologies stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction of $15,814,486.26. Following the sale, the director directly owned 43,961 shares of the company's stock, valued at approximately $19,938,071.94. This trade represents a 44.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,434,758 shares of company stock worth $1,448,870,683 over the last ninety days. Insiders own 41.50% of the company's stock.

Hedge Funds Weigh In On Dell Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DELL. Campbell Capital Management Inc. boosted its position in shares of Dell Technologies by 34.0% in the 4th quarter. Campbell Capital Management Inc. now owns 80,189 shares of the technology company's stock valued at $10,094,000 after purchasing an additional 20,362 shares during the period. ProShare Advisors LLC increased its position in Dell Technologies by 10.5% during the fourth quarter. ProShare Advisors LLC now owns 80,686 shares of the technology company's stock worth $10,157,000 after buying an additional 7,642 shares during the period. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund purchased a new stake in Dell Technologies in the fourth quarter valued at approximately $23,332,000. Tectonic Advisors LLC acquired a new stake in shares of Dell Technologies in the fourth quarter valued at approximately $5,620,000. Finally, U.S. Capital Wealth Advisors LLC grew its position in shares of Dell Technologies by 31.5% during the fourth quarter. U.S. Capital Wealth Advisors LLC now owns 25,209 shares of the technology company's stock worth $3,173,000 after acquiring an additional 6,038 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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