Dell Technologies (NYSE:DELL) Trading Up 16.7% - Should You Buy?

Key Points

• Dell shares jumped 16.7% on heavy volume, touching a new high as investors piled in ahead of the company’s upcoming earnings report. The rally was fueled by momentum buying and strong enthusiasm around Dell’s AI-related business.
• Analysts have become more bullish, with multiple firms raising price targets and reiterating Buy ratings. The optimism is tied to strong demand for AI servers and improving PC trends, with Bank of America and Evercore among those boosting targets.
• Dell’s recent results and guidance have also supported the stock: the company beat Q4 estimates, posted 39.5% revenue growth, and raised its dividend. However, insider sales and the broader analyst consensus still suggest some caution despite the positive momentum.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) was up 16.7% during trading on Friday . The company traded as high as $298.32 and last traded at $294.97. Approximately 15,078,090 shares were traded during trading, an increase of 89% from the average daily volume of 7,961,568 shares. The stock had previously closed at $252.80.

Key Headlines Impacting Dell Technologies

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

• Positive Sentiment: Analysts have turned increasingly bullish, with several firms raising price targets and reaffirming Buy ratings ahead of Dell’s May 28 earnings report, citing strong AI server demand and improving PC trends. Dell set to deliver beat and raise for Q1, says Bank of America
• Positive Sentiment: Investors are betting Dell will post another blockbuster quarter, with expectations for revenue and earnings growth supported by its large AI server backlog and strong enterprise AI positioning. Dell stock rallies as analysts show love ahead of Q1 earnings
• Positive Sentiment: Recent coverage highlights Dell’s stock reaching a fresh all-time high/52-week high as AI-related enthusiasm and momentum buying continue to build into earnings. Dell Stock Surges Ahead Of AI-Driven Fiscal Q1 Report
• Positive Sentiment: Unusual options activity showed heavy call buying, suggesting traders are positioning for further upside into the earnings release.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on DELL shares. UBS Group cut shares of Dell Technologies from a "buy" rating to a "neutral" rating and lifted their price target for the company from $167.00 to $243.00 in a research note on Sunday, May 10th. Wolfe Research started coverage on shares of Dell Technologies in a research note on Thursday, April 9th. They issued a "peer perform" rating on the stock. Bank of America lifted their price target on shares of Dell Technologies from $246.00 to $280.00 and gave the company a "buy" rating in a research note on Monday. Wall Street Zen cut shares of Dell Technologies from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 16th. Finally, Evercore lifted their price target on shares of Dell Technologies from $240.00 to $270.00 and gave the company an "outperform" rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $211.32.

Dell Technologies Trading Up 16.7%

The business has a fifty day simple moving average of $196.18 and a two-hundred day simple moving average of $152.21. The company has a market cap of $190.48 billion, a PE ratio of 33.83, a price-to-earnings-growth ratio of 0.92 and a beta of 0.99.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The technology company reported $3.89 earnings per share for the quarter, beating analysts' consensus estimates of $3.53 by $0.36. The company had revenue of $33.38 billion for the quarter, compared to analyst estimates of $31.60 billion. Dell Technologies had a negative return on equity of 236.90% and a net margin of 5.23%.The firm's revenue for the quarter was up 39.5% on a year-over-year basis. During the same quarter last year, the firm posted $2.68 EPS. Dell Technologies has set its Q1 2027 guidance at 2.900-2.900 EPS and its FY 2027 guidance at 12.900-12.900 EPS. Equities analysts expect that Dell Technologies Inc. will post 11.87 EPS for the current year.

Dell Technologies Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 1st. Shareholders of record on Tuesday, April 21st were issued a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Tuesday, April 21st. This is an increase from Dell Technologies's previous quarterly dividend of $0.53. Dell Technologies's payout ratio is 28.90%.

Insiders Place Their Bets

In other Dell Technologies news, Director V (Gp) L.L.C. Slta sold 510,000 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $146.83, for a total value of $74,883,300.00. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Ellen Jamison Kullman sold 150,346 shares of Dell Technologies stock in a transaction on Friday, March 6th. The stock was sold at an average price of $145.13, for a total value of $21,819,714.98. Following the transaction, the director owned 65,662 shares in the company, valued at approximately $9,529,526.06. This represents a 69.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 3,571,688 shares of company stock worth $576,654,105 in the last 90 days. 42.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in shares of Dell Technologies by 4.5% during the 4th quarter. Vanguard Group Inc. now owns 31,441,451 shares of the technology company's stock worth $3,957,850,000 after acquiring an additional 1,355,841 shares during the period. State Street Corp raised its holdings in shares of Dell Technologies by 1.8% during the 4th quarter. State Street Corp now owns 14,715,998 shares of the technology company's stock worth $1,852,450,000 after acquiring an additional 265,740 shares during the period. Bank of America Corp DE raised its holdings in shares of Dell Technologies by 7.6% during the 1st quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company's stock worth $2,362,624,000 after acquiring an additional 1,011,101 shares during the period. Geode Capital Management LLC raised its holdings in shares of Dell Technologies by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 7,478,732 shares of the technology company's stock worth $939,808,000 after acquiring an additional 108,011 shares during the period. Finally, Invesco Ltd. raised its holdings in shares of Dell Technologies by 50.4% during the 4th quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company's stock worth $919,051,000 after acquiring an additional 2,445,854 shares during the period. Hedge funds and other 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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