Dell Technologies (NYSE:DELL) Stock Price Up 7.1% - Here's What Happened

Key Points

• Dell Technologies shares rose 7.1% on Tuesday, trading as high as $463.48 after closing at $427.11 the day before, as investors continued to bid up the stock following a strong run.
• Sentiment remains upbeat because Dell is seen as benefiting from booming AI infrastructure demand, with analysts saying strength in AI-optimized servers is helping offset weakness in PC shipments.
• Despite the rally, insider selling and valuation concerns are drawing attention, with multiple large share sales reported and the stock already up sharply year to date.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s share price traded up 7.1% during trading on Tuesday . The company traded as high as $463.48 and last traded at $457.6390. Approximately 7,014,704 shares changed hands during mid-day trading, a decline of 19% from the average daily volume of 8,638,254 shares. The stock had previously closed at $427.11.

Trending Headlines about Dell Technologies

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

• Positive Sentiment: Recent coverage says Dell is “winning the AI infrastructure race,” with demand for AI-optimized servers continuing to exceed expectations and supporting the stock’s rally. Dell Is Winning the AI Infrastructure Race. Here’s What Comes Next After a 250% YTD Rally.
• Positive Sentiment: Another update noted that weak PC shipments are being offset by strength in Dell’s AI infrastructure segment, helping traders stay bullish on the name. PC Shipments Fell in Q2, but AI Optimism Is Set to Keep Growing and Push DELL Stock Higher
• Positive Sentiment: Analyst commentary remains constructive, highlighting Dell’s solid interest coverage and growth prospects despite higher borrowing costs. DELL & 3 More Stocks With Strong Interest Coverage to Buy Now
• Neutral Sentiment: Market chatter is also focused on how much more upside remains after Dell’s huge year-to-date run, suggesting valuation debate is increasing as the stock stays elevated. Missed DELL’s 248% Run? IGPT Quietly Turned $10K Into $16,600
• Negative Sentiment: Three insiders tied to Silver Lake sold large blocks of Dell shares near recent highs, which can pressure sentiment because it raises questions about insider confidence. SEC filing for Silver Lake Partners Iv, L.P. sale
• Negative Sentiment: One trading update said Dell underperformed the broader market in the latest session, consistent with some profit-taking after the stock’s steep advance. Dell Technologies Registers a Bigger Fall Than the Market

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. The Goldman Sachs Group boosted their price target on Dell Technologies from $230.00 to $500.00 and gave the company a "buy" rating in a report on Monday, June 1st. William Blair initiated coverage on shares of Dell Technologies in a report on Monday, June 1st. They issued a "neutral" rating for the company. Citigroup began coverage on shares of Dell Technologies in a research note on Monday, June 1st. They set an "outperform" rating on the stock. CLSA raised shares of Dell Technologies to an "outperform" rating in a report on Friday, May 29th. Finally, Mizuho upped their price target on shares of Dell Technologies from $435.00 to $500.00 and gave the stock an "outperform" rating in a research report on Monday, June 1st. One investment 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 given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $492.76.

Dell Technologies Trading Up 7.1%

The firm has a 50 day moving average of $358.44 and a 200-day moving average of $221.33. The company has a market cap of $296.60 billion, a P/E ratio of 36.35, a P/E/G ratio of 0.93 and a beta of 1.31.

Dell Technologies (NYSE:DELL - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share for the quarter, topping the consensus estimate of $2.96 by $1.90. Dell Technologies had a negative return on equity of 366.90% and a net margin of 6.28%.The business had revenue of $43.84 billion during the quarter, compared to the consensus estimate of $35.74 billion. During the same period in the prior year, the company posted $1.55 EPS. The firm's revenue for the quarter 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. Equities analysts predict that Dell Technologies Inc. will post 17.74 EPS for the current fiscal year.

Dell Technologies Dividend Announcement

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 given a dividend of $0.63 per share. 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 dividend payout ratio is currently 20.02%.

Insider Activity at Dell Technologies

In other news, Director Spv-2 L.P. Sl sold 59,492 shares of the firm's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction of $26,982,001.68. Following the completion of the transaction, the director owned 89,222 shares in the company, valued at $40,465,745.88. This trade represents a 40.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Lake Group L.L.C. Silver sold 16,679 shares of the business's stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $396.37, for a total value of $6,611,055.23. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 4,391,424 shares of company stock valued at $1,618,873,745. 41.50% of the stock is currently owned by insiders.

Institutional Trading of Dell Technologies

A number of large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its holdings 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 valued at $347,000 after purchasing an additional 901 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in Dell Technologies during the second quarter valued at $328,000. Marshall Wace LLP bought a new position in Dell Technologies during the second quarter valued at $809,000. Gamco Investors INC. ET AL lifted its position in Dell Technologies by 30.2% during the second quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company's stock valued at $819,000 after purchasing an additional 1,550 shares during the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Dell Technologies by 147.2% in the 2nd quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company's stock worth $7,112,000 after buying an additional 34,538 shares in the last quarter. Institutional investors own 76.37% of the company's stock.

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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