Dell Technologies (NYSE:DELL) Trading Up 4% Following Dividend Announcement

Key Points

• Dell Technologies rose 4% after announcing a quarterly cash dividend of $0.63 per share. The dividend is payable on July 31 to shareholders of record on July 21, with an annualized yield of about 0.6%.
• Analysts remain broadly positive on Dell, with a consensus rating of “Moderate Buy” and an average price target of $475.76. Several firms recently lifted their targets, reflecting optimism around the stock’s upside.
• Dell’s recent earnings beat expectations, posting $4.86 EPS versus an estimate of $2.96 on revenue of $43.84 billion, far above forecasts. The company also highlighted strong growth in its AI and data center businesses, which continues to support investor sentiment.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) was up 4% on Wednesday after the company announced a dividend. The stock traded as high as $431.76 and last traded at $420.1030. Approximately 8,516,146 shares were traded during trading, a decline of 3% from the average daily volume of 8,745,947 shares. The stock had previously closed at $404.08.The newly announced dividend which will be paid on Friday, July 31st. Investors of record on Tuesday, July 21st will be issued a $0.63 dividend. The ex-dividend date is Tuesday, July 21st. This represents a $2.52 annualized dividend and a yield of 0.6%. Dell Technologies's payout ratio is presently 20.02%.

Analysts Set New Price Targets

Several equities analysts recently issued reports on DELL shares. Susquehanna set a $289.00 target price on shares of Dell Technologies and gave the company a "neutral" rating in a report on Friday, May 29th. Royal Bank Of Canada started coverage on shares of Dell Technologies in a report on Friday, May 29th. They issued an "outperform" rating on the stock. Mizuho boosted their target price on shares of Dell Technologies from $435.00 to $500.00 and gave the company an "outperform" rating in a report on Monday, June 1st. Daiwa Securities Group boosted their target price on shares of Dell Technologies from $170.00 to $465.00 and gave the company an "outperform" rating in a report on Tuesday, June 2nd. Finally, Wells Fargo & Company boosted their target price on shares of Dell Technologies from $270.00 to $505.00 and gave the company an "overweight" rating in a report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Dell Technologies has a consensus rating of "Moderate Buy" and an average target price of $475.76.

Dell Technologies Price Performance

The firm's fifty day moving average price is $273.91 and its two-hundred day moving average price is $183.09. The stock has a market cap of $271.28 billion, a price-to-earnings ratio of 33.37, a price-to-earnings-growth ratio of 0.88 and a beta of 1.30.

Dell Technologies (NYSE:DELL - Get Free Report) last announced 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 analyst estimates of $35.74 billion. During the same quarter in the prior year, the business earned $1.55 earnings per share. The business'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. On average, equities research analysts anticipate that Dell Technologies Inc. will post 17.6 earnings per share for the current year.

Key Dell Technologies News

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

• Positive Sentiment: Dell declared a quarterly cash dividend of $0.63 per share, which reinforces capital returns to shareholders and helped support sentiment. Dell Technologies Declares Quarterly Cash Dividend
• Positive Sentiment: Several reports highlighted Dell’s AI server and data center growth, with commentary saying the market may still be underestimating Dell’s AI opportunity and momentum remains strong. Dell Stock Looks Cheap Here With Higher Analyst Forecasts - Short Put Plays Are Attractive
• Positive Sentiment: Analysts and market commentators remain constructive on DELL, including notes that Wall Street’s average recommendation is still a Buy and that the stock could have more upside if AI demand keeps scaling. Wall Street Analysts Think Dell Technologies (DELL) Is a Good Investment: Is It?
• Positive Sentiment: Dell’s federal business also received a lift from a reported $1.44 billion U.S. Air Force contract win, adding to the growth narrative around enterprise and government infrastructure spending. Dell Wins $1.44B Microsoft License Deal
• Neutral Sentiment: Dell completed a $3 billion senior notes offering, which improves financing flexibility but also adds debt, making the impact on shares less clear. Dell Technologies Completes $3 Billion Senior Notes Offering
• Negative Sentiment: Recent insider sales by multiple Dell directors, including Silver Lake-related entities, may temper enthusiasm despite being disclosed and possibly preplanned. SEC filing: Silver Lake Partners De (Aiv sale
• Negative Sentiment: One industry report warned that a memory crunch is pressuring server supply chains, which could become a headwind for Dell’s server shipments or margins. Dell, HPE server supply upended by memory crunch

Insider Buying and Selling at Dell Technologies

In related news, Director Silver Lake Partners Iv, L.P. sold 39,537 shares of the company's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $403.12, for a total value of $15,938,155.44. Following the sale, the director owned 69,916 shares in the company, valued at $28,184,537.92. This represents a 36.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Spv-2 L.P. Sl sold 34,257 shares of the company's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $403.12, for a total transaction of $13,809,681.84. Following the completion of the sale, the director owned 91,809 shares in the company, valued at $37,010,044.08. This represents a 27.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 4,907,857 shares of company stock worth $1,556,603,326. 41.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dell Technologies

A number of institutional investors and hedge funds have recently made changes to their positions in DELL. Brighton Jones LLC raised its holdings in shares of Dell Technologies by 42.7% in the 4th quarter. Brighton Jones LLC now owns 3,011 shares of the technology company's stock worth $347,000 after acquiring an additional 901 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in Dell Technologies in the 2nd quarter worth about $328,000. Marshall Wace LLP bought a new stake in Dell Technologies in the 2nd quarter worth about $809,000. Gamco Investors INC. ET AL grew its position in Dell Technologies by 30.2% in the 2nd quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company's stock worth $819,000 after purchasing an additional 1,550 shares in the last quarter. Finally, NewEdge Advisors LLC grew its position in 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 purchasing an additional 34,538 shares in the last quarter. Institutional investors and hedge funds own 76.37% of the company's stock.

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.

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