Dell Technologies (NYSE:DELL) Trading Up 4.2% - Should You Buy?

Key Points

• Dell Technologies shares rose 4.2% on Thursday, trading as high as $460.50 as investor sentiment stayed strong around the stock’s AI-related momentum.
• Analysts have grown much more bullish, with Evercore ISI lifting its price target to $500 and several other firms also raising targets after Dell’s strong earnings and AI infrastructure demand.
• Dell’s latest quarterly results beat expectations by a wide margin, with EPS of $4.86 versus $2.96 expected and revenue up 87.5% year over year to $43.84 billion.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s share price shot up 4.2% during trading on Thursday . The company traded as high as $460.50 and last traded at $450.2010. Approximately 7,604,075 shares traded hands during trading, a decline of 13% from the average session volume of 8,706,596 shares. The stock had previously closed at $431.97.

More Dell Technologies News

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

• Positive Sentiment: Evercore ISI raised its price target on DELL to $500, reinforcing expectations that strong AI infrastructure demand can keep driving revenue and earnings growth. Why Is Dell Technologies Stock Surging Thursday?
• Positive Sentiment: News flow around Dell’s AI momentum and strong recent earnings has kept sentiment upbeat, with traders viewing the company as a beneficiary of the ongoing AI server buildout. Dell Gets Higher Target on AI Demand
• Positive Sentiment: Momentum trading and technical signals have also supported the stock, with reports of a “power inflow” and continued buying pressure. Dell Shares Rise 4% After Key Trading Signal
• Positive Sentiment: Broader market coverage has highlighted Dell as one of the AI-related winners, helping sustain investor interest in the shares. Stock Market Today: Dow Builds Gains Amid U.S.-Iran News; Arm, Dell Lead Upside (Live Coverage)
• Neutral Sentiment: Several filings showed sizable insider sales by Silver Lake-related directors, which may temper enthusiasm a bit, but do not by themselves change Dell’s operating outlook. SEC filing
• Negative Sentiment: Separately, Dell’s tighter shareholder proposal rules and the broader memory-chip supply crunch in the PC industry could be viewed as potential headwinds for governance sentiment and hardware margins. Will Dell’s Tougher Shareholder Proposal Rules Reshape Its AI Strategy And Governance Balance (DELL)?

Analyst Ratings Changes

Several equities analysts recently weighed in on DELL shares. Bank of America increased their price target on shares of Dell Technologies from $280.00 to $500.00 and gave the stock a "buy" rating in a report on Friday, May 29th. William Blair initiated coverage on shares of Dell Technologies in a research note on Monday, June 1st. They set a "neutral" rating for the company. Sanford C. Bernstein increased their price objective on shares of Dell Technologies from $280.00 to $500.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Truist Financial raised their target price on shares of Dell Technologies from $170.00 to $360.00 and gave the stock a "hold" rating in a report on Friday, May 29th. Finally, TD Cowen boosted their target price on shares of Dell Technologies from $150.00 to $450.00 and gave the company a "hold" rating in a research report on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $492.76.

Dell Technologies Stock Performance

The stock has a market cap of $291.78 billion, a PE ratio of 35.76, a price-to-earnings-growth ratio of 0.89 and a beta of 1.31. The company has a 50 day moving average of $344.59 and a two-hundred day moving average of $214.76.

Dell Technologies (NYSE:DELL - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 company had revenue of $43.84 billion for the quarter, compared to the consensus estimate of $35.74 billion. During the same quarter in the prior year, the business posted $1.55 earnings per share. Dell Technologies's revenue for the quarter 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. As a group, equities research analysts anticipate that Dell Technologies Inc. will post 17.74 EPS for the current year.

Dell Technologies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, July 21st will be paid a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Tuesday, July 21st. Dell Technologies's dividend payout ratio is presently 20.02%.

Insiders Place Their Bets

In other Dell Technologies news, Director Silver Lake Partners Iv, L.P. sold 189,805 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $457.99, for a total transaction of $86,928,791.95. Following the transaction, the director directly owned 24,287 shares of the company's stock, valued at $11,123,203.13. This trade represents a 88.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director V (Gp) L.L.C. Slta sold 458,666 shares of Dell Technologies stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $177.24, for a total transaction of $81,293,961.84. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 4,055,405 shares of company stock worth $1,471,039,891. Corporate insiders own 41.50% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of DELL. Brighton Jones LLC increased its stake in Dell Technologies by 42.7% during the 4th quarter. Brighton Jones LLC now owns 3,011 shares of the technology company's stock worth $347,000 after buying an additional 901 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Dell Technologies during the second quarter valued at approximately $328,000. Marshall Wace LLP purchased a new position in shares of Dell Technologies in the second quarter valued at approximately $809,000. Gamco Investors INC. ET AL boosted its stake in shares of Dell Technologies by 30.2% in the second quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company's stock worth $819,000 after acquiring an additional 1,550 shares during the last quarter. Finally, NewEdge Advisors LLC boosted its stake in shares of Dell Technologies by 147.2% in the second quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company's stock worth $7,112,000 after acquiring an additional 34,538 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.

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