Dell Technologies (NYSE:DELL) Trading Up 3.7% - Should You Buy?

Key Points

• Dell shares rose 3.7% to about $453.71, supported by strong AI-server momentum and an overwhelmingly bullish analyst view. The consensus rating is “Moderate Buy,” with an average price target of $494.67.
• Dell reported exceptional quarterly growth, including $43.84 billion in revenue, $4.86 in EPS, and 87.5% year-over-year revenue growth. AI-optimized server revenue reached $16.1 billion, with AI orders totaling $24.4 billion.
• Valuation and ownership activity remain risks: the stock trades near its 12-month high, one analyst called it “full price,” and insiders sold roughly 3.43 million shares worth $1.45 billion over the last quarter.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) shot up 3.7% on Friday . The stock traded as high as $455.88 and last traded at $453.7070. 5,110,308 shares were traded during trading, a decline of 39% from the average session volume of 8,378,461 shares. The stock had previously closed at $437.65.

Dell Technologies News Roundup

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

• Positive Sentiment: Analysts remain broadly optimistic on Dell, with recent price targets generally ranging from $477 to $550 and a reported median target of $500. This supports the view that the company’s AI-server growth can justify further upside. Is Dell Technologies a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: Recent analysis highlights Dell’s AI-infrastructure contract wins, including the Volta AI factory and Texas A&M’s IGNITE platform. These projects add to a backlog supported by robust enterprise IT spending and growing demand for AI-optimized servers. Dell Could Be 4% Below Fair Value on AI Infrastructure Wins
• Positive Sentiment: Dell’s partnerships with Nvidia, AMD and Microsoft are viewed as additional evidence of strong AI-server demand and improving competitive positioning. Dell is also collaborating with Nvidia and Nokia on AI-enabled networks aimed at future 6G infrastructure. Nvidia, Microsoft Partner Tests Breakout
• Neutral Sentiment: The bullish case follows Dell’s sharp long-term rally and strong quarterly results: first-quarter revenue reached $43.8 billion, while AI-optimized server revenue was $16.1 billion and AI orders totaled $24.4 billion. However, the stock is trading close to its 12-month high, increasing sensitivity to execution and guidance.
• Negative Sentiment: One analyst downgraded Dell to reflect a “full price” valuation. The downgrade suggests that much of the AI-growth opportunity may already be reflected in the shares, even though the underlying business remains attractive. Dell: Great Business, Full Price
• Negative Sentiment: The prior session’s weakness was attributed partly to a sympathy selloff after an AI-server competitor issued disappointing guidance, raising concerns about sector-wide demand and near-term expectations. Dell also faces a notable overhang from extensive insider selling, with no reported insider purchases in the past six months. Dell Slips as Peer Earnings Pressure AI Server Trade

Analyst Upgrades and Downgrades

Several equities research analysts have commented on DELL shares. Weiss Ratings upgraded shares of Dell Technologies from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 15th. Roth Capital started coverage on shares of Dell Technologies in a research note on Friday, May 29th. They issued a "buy" rating on the stock. Guggenheim raised shares of Dell Technologies to a "buy" rating in a research note on Monday, June 1st. Citigroup raised their target price on shares of Dell Technologies from $475.00 to $515.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Finally, Royal Bank Of Canada initiated coverage on Dell Technologies in a report on Friday, May 29th. They issued an "outperform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $494.67.

Dell Technologies Stock Up 3.7%

The firm's 50-day moving average price is $416.56 and its two-hundred day moving average price is $258.89. The firm has a market capitalization of $294.05 billion, a PE ratio of 36.04, a P/E/G ratio of 0.99 and a beta of 1.33.

Dell Technologies (NYSE:DELL - Get Free Report) last posted its quarterly earnings data on Thursday, May 28th. The technology company reported $4.86 EPS for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analyst estimates of $35.74 billion. During the same quarter last year, the business posted $1.55 EPS. The company's revenue was up 87.5% on a year-over-year basis. 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 research analysts forecast 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 was paid on Friday, July 31st. Investors of record on Tuesday, July 21st were paid a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Tuesday, July 21st. Dell Technologies's dividend payout ratio is currently 20.02%.

Insiders Place Their Bets

In other news, Director Lake Group L.L.C. Silver sold 16,679 shares of the company's stock in a transaction on Friday, June 26th. The shares were sold at an average price of $396.37, for a total value of $6,611,055.23. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Silver Lake Partners V. De (Aiv sold 34,869 shares of the stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total value of $15,814,486.26. Following the sale, the director owned 43,961 shares of the company's stock, valued at approximately $19,938,071.94. This represents a 44.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 3,434,758 shares of company stock valued at $1,448,870,683. 41.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Dell Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in DELL. Commonwealth Retirement Investments LLC bought a new position in Dell Technologies during the fourth quarter valued at approximately $25,000. Rossby Financial LCC grew its position in Dell Technologies by 968.4% in the fourth quarter. Rossby Financial LCC now owns 203 shares of the technology company's stock worth $26,000 after acquiring an additional 184 shares in the last quarter. Navalign LLC acquired a new position in shares of Dell Technologies during the 4th quarter worth $29,000. Kemnay Advisory Services Inc. bought a new position in shares of Dell Technologies during the 4th quarter valued at $29,000. Finally, WealthCollab LLC lifted its stake in shares of Dell Technologies by 82.0% in the 2nd quarter. WealthCollab LLC now owns 253 shares of the technology company's stock valued at $31,000 after purchasing an additional 114 shares during the last quarter. 76.37% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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