Dell Technologies (NYSE:DELL) Stock Price Down 3.3% - Here's What Happened

Key Points

• Dell shares fell 3.3% on Wednesday, trading as low as $407 after closing at $435.31, with volume running well above average.
• The company’s latest earnings were strong, as Q1 FY27 EPS of $4.86 and revenue of $43.84 billion both beat Wall Street estimates, highlighting solid execution.
• Investor focus remains on Dell’s AI growth story, with management citing about $24.4 billion in AI orders and a roughly $60 billion AI-server outlook, while analysts continue to raise price targets despite some concerns that the stock may be getting expensive.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) dropped 3.3% during trading on Wednesday . The company traded as low as $407.00 and last traded at $421.0330. Approximately 13,986,557 shares changed hands during mid-day trading, an increase of 60% from the average daily volume of 8,745,562 shares. The stock had previously closed at $435.31.

Dell Technologies News Summary

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

• Positive Sentiment: Dell reported Q1 FY27 EPS of $4.86, easily beating estimates, while revenue of $43.84 billion also topped expectations, reinforcing that the business is executing well. Article Title
• Positive Sentiment: Management’s AI commentary is a major driver: Dell highlighted about $24.4 billion in AI orders and a roughly $60 billion AI-server outlook, which supports the case that Dell is becoming a key beneficiary of the AI buildout. Article Title
• Positive Sentiment: Several outlets and analysts upgraded or reaffirmed bullish views, including Zacks moving DELL to Strong Buy and Daiwa lifting its price target to $465, signaling rising Wall Street confidence in near-term earnings momentum. Article Title
• Positive Sentiment: New contract wins are also helping sentiment, including a reported $10 billion U.S. Department of Defense software and cloud infrastructure deal that strengthens Dell’s AI/cloud credibility. Article Title
• Neutral Sentiment: Articles comparing Dell’s rally to peers like HPE and Super Micro, plus commentary that the stock may be extended or fully valued, suggest the move is also fueled by momentum trading and elevated AI enthusiasm. Article Title
• Negative Sentiment: Some pieces warn the stock’s valuation has become stretched after its massive run, which could limit upside if AI order growth or guidance fails to keep accelerating. Article Title

Analyst Ratings Changes

Several research analysts have recently commented on DELL shares. JPMorgan Chase & Co. lifted their price target on shares of Dell Technologies from $280.00 to $500.00 and gave the company an "overweight" rating in a report on Friday, May 29th. The Goldman Sachs Group lifted their price target on shares of Dell Technologies from $230.00 to $500.00 and gave the company a "buy" rating in a report on Monday. Zacks Research raised shares of Dell Technologies from a "hold" rating to a "strong-buy" rating in a report on Tuesday, April 21st. Jefferies Financial Group lowered shares of Dell Technologies to a "hold" rating in a report on Monday. Finally, Evercore lifted their price target on shares of Dell Technologies from $270.00 to $450.00 and gave the company an "outperform" rating in a report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $475.76.

Dell Technologies Trading Down 3.3%

The stock has a market capitalization of $271.88 billion, a P/E ratio of 33.44, a P/E/G ratio of 1.45 and a beta of 1.30. The company's 50-day moving average is $223.02 and its two-hundred day moving average is $161.80.

Dell Technologies (NYSE:DELL - Get Free Report) last issued its quarterly earnings data 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. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The firm had revenue of $43.84 billion for the quarter, compared to the consensus estimate of $35.74 billion. During the same period last year, the firm posted $1.55 EPS. Dell Technologies's quarterly revenue was up 87.5% compared to the same quarter last year. 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 12.21 EPS for the current fiscal year.

Insider Activity at Dell Technologies

In related news, CAO Richard Troy Sharp sold 1,538 shares of the business's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $149.26, for a total value of $229,561.88. Following the sale, the chief accounting officer directly owned 8,030 shares in the company, valued at $1,198,557.80. The trade was a 16.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director V (Gp) L.L.C. Slta sold 382,000 shares of the business's stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $176.81, for a total transaction of $67,541,420.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 2,561,687 shares of company stock worth $426,677,518 in the last three months. Insiders own 41.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in DELL. Brighton Jones LLC increased its position in shares of 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 in the last quarter. Sivia Capital Partners LLC bought a new stake in Dell Technologies in the second quarter worth approximately $328,000. Marshall Wace LLP acquired a new stake in shares of Dell Technologies in the second quarter worth $809,000. Gamco Investors INC. ET AL boosted its holdings in shares of Dell Technologies by 30.2% during the 2nd 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 grew its position in shares of Dell Technologies by 147.2% in the second quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company's stock valued at $7,112,000 after purchasing an additional 34,538 shares during the last quarter. 76.37% of the stock is owned by hedge funds and other 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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