Dell Technologies (NYSE:DELL) Stock Price Up 4.2% Following Strong Earnings

Key Points

• Dell Technologies shares rose 4.2% after the company posted stronger-than-expected quarterly results, with EPS of $4.86 versus the $2.96 estimate and revenue of $43.84 billion versus $35.74 billion expected.
• The stock also gained support from news that Dell won a five-year, roughly $9.7 billion Pentagon software contract, a deal seen as a major boost to both revenue and credibility.
• Investor optimism is being reinforced by Dell’s AI and enterprise infrastructure momentum, as analysts and market commentary point to continued demand for its servers and related services ahead of upcoming earnings.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) shot up 4.2% during trading on Thursday following a better than expected earnings announcement. The company traded as high as $327.73 and last traded at $318.22. 18,012,692 shares traded hands during mid-day trading, an increase of 124% from the average session volume of 8,051,054 shares. The stock had previously closed at $305.32.

The technology company reported $4.86 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.96 by $1.90. The business had revenue of $43.84 billion during the quarter, compared to analyst estimates of $35.74 billion. Dell Technologies had a negative return on equity of 236.90% and a net margin of 5.23%.

Dell Technologies News Roundup

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

• Positive Sentiment: Dell won a five-year, approximately $9.7 billion Pentagon/Department of Defense software contract to manage Microsoft-related software and cloud services for the U.S. military. The deal is being seen as a major revenue and credibility boost, helping drive investor optimism. CNBC article
• Positive Sentiment: The contract adds to Dell’s momentum in AI and enterprise infrastructure, reinforcing the view that demand for its servers and software-related offerings remains strong. Reuters article
• Positive Sentiment: Investors are also positioning for Dell’s upcoming earnings release, with expectations that AI server momentum and broader enterprise demand could support another strong quarter. Zacks article
• Neutral Sentiment: Several articles focused on Dell’s recent stock rally and the market’s attention on whether the company can extend its strong year-to-date run; these pieces reflect sentiment rather than new business developments. Barron's article

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on DELL. JPMorgan Chase & Co. boosted their price objective on Dell Technologies from $205.00 to $280.00 and gave the company an "overweight" rating in a research report on Friday, May 15th. Wall Street Zen downgraded Dell Technologies from a "strong-buy" rating to a "buy" rating in a report on Saturday, May 16th. Wolfe Research started coverage on Dell Technologies in a report on Thursday, April 9th. They set a "peer perform" rating for the company. Weiss Ratings upgraded Dell Technologies from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 15th. Finally, Truist Financial started coverage on Dell Technologies in a report on Tuesday, March 31st. They set a "hold" rating and a $170.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $211.32.

Insider Transactions at Dell Technologies

In other news, insider William F. Scannell sold 143,067 shares of the stock in a transaction on Monday, March 23rd. The stock was sold at an average price of $165.00, for a total value of $23,606,055.00. Following the sale, the insider directly owned 21,779 shares of the company's stock, valued at approximately $3,593,535. This represents a 86.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director V (Gp) L.L.C. Slta sold 382,000 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $176.81, for a total value of $67,541,420.00. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 3,571,688 shares of company stock valued at $576,654,105. 41.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dell Technologies

Several institutional investors have recently modified their holdings of DELL. Commonwealth Retirement Investments LLC bought a new position in Dell Technologies in the fourth quarter valued at about $25,000. Rossby Financial LCC lifted its holdings in Dell Technologies by 968.4% in the fourth quarter. Rossby Financial LCC now owns 203 shares of the technology company's stock valued at $26,000 after acquiring an additional 184 shares during the period. Navalign LLC bought a new position in Dell Technologies in the fourth quarter valued at about $29,000. Kemnay Advisory Services Inc. bought a new position in Dell Technologies in the fourth quarter valued at about $29,000. Finally, WealthCollab LLC lifted its holdings in Dell Technologies by 82.0% in the second quarter. WealthCollab LLC now owns 253 shares of the technology company's stock valued at $31,000 after acquiring an additional 114 shares during the period. 76.37% of the stock is owned by hedge funds and other institutional investors.

Dell Technologies Stock Up 4.2%

The business has a fifty day simple moving average of $208.08 and a two-hundred day simple moving average of $156.33. The company has a market cap of $205.49 billion, a P/E ratio of 36.49, a P/E/G ratio of 1.12 and a beta of 0.99.

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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