XML Financial LLC Trims Holdings in Dell Technologies Inc. $DELL

Key Points

• XML Financial LLC cut its Dell Technologies stake by 37.5% in the second quarter, selling 2,370 shares and retaining 3,947 shares valued at approximately $1.7 million. Institutional investors collectively own 76.37% of Dell.
• Dell reported strong quarterly results, with revenue rising 57.7% year over year to $46.97 billion and EPS of $7.04, beating analyst expectations. AI-optimized server revenue nearly doubled to $16.4 billion, and management raised its fiscal 2027 guidance substantially above consensus estimates.
• Despite strong fundamentals, Dell shares were trading down 7.3%, while valuation and insider selling remain concerns. Insiders sold more than 2.1 million shares worth approximately $870.6 million over the past three months.

XML Financial LLC lowered its position in shares of Dell Technologies Inc. (NYSE:DELL - Free Report) by 37.5% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,947 shares of the technology company's stock after selling 2,370 shares during the quarter. XML Financial LLC's holdings in Dell Technologies were worth $1,703,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. ProShare Advisors LLC boosted its holdings in Dell Technologies by 10.5% in the 4th quarter. ProShare Advisors LLC now owns 80,686 shares of the technology company's stock worth $10,157,000 after buying an additional 7,642 shares during the period. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund bought a new stake in Dell Technologies during the fourth quarter valued at about $23,332,000. Plato Investment Management Ltd purchased a new position in shares of Dell Technologies in the second quarter valued at about $5,913,000. Gabelli Funds LLC lifted its position in shares of Dell Technologies by 49.0% in the first quarter. Gabelli Funds LLC now owns 46,094 shares of the technology company's stock valued at $7,565,000 after acquiring an additional 15,150 shares in the last quarter. Finally, MUFG Securities EMEA plc boosted its stake in shares of Dell Technologies by 112.9% in the fourth quarter. MUFG Securities EMEA plc now owns 12,356 shares of the technology company's stock worth $1,555,000 after acquiring an additional 6,553 shares during the period. 76.37% of the stock is currently owned by institutional investors.

More Dell Technologies News

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

• Positive Sentiment: Record results beat expectations. Dell reported quarterly revenue of approximately $47.0 billion, up 57.7% year over year and above the roughly $44.9 billion consensus estimate. Earnings of $7.04 per share also exceeded expectations near $4.91-$4.97 and rose significantly from $2.32 a year ago. Dell Technologies Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: AI server demand accelerated. AI-optimized server revenue reached $16.4 billion, approximately doubling year over year, while AI server orders totaled $60.9 billion. Infrastructure Solutions Group revenue increased 89% to $31.8 billion, highlighting Dell’s positioning in the data-center buildout. Dell Again Lifts Forecasts as AI Demand Powers Record Results
• Positive Sentiment: Management raised guidance well above Wall Street estimates. Fiscal 2027 revenue guidance increased to $192 billion and EPS guidance to $25.50, compared with consensus estimates of approximately $173.9 billion and $18.72. Third-quarter guidance also called for $49 billion of revenue and $6.50 EPS, well ahead of analyst expectations. Dell Boosts Fiscal-Year Outlook as Server Revenue Surges
• Positive Sentiment: A large backlog supports forward revenue visibility. Dell’s AI-server backlog reportedly reached about $95 billion, while the company returned a record $4.3 billion to shareholders through repurchases and dividends and maintained its quarterly dividend at $0.63 per share. Dell’s AI Servers Drive a Stellar Earnings Performance
• Neutral Sentiment: The stock’s reaction may remain volatile. Options markets had implied a roughly 11% post-earnings move, reflecting the unusually high expectations after a major year-to-date rally. Investors are likely to focus on backlog conversion, supply availability and AI-server profitability.
• Negative Sentiment: Valuation leaves limited room for disappointment. Before the report, analysts warned that strong revenue alone might not sustain the rally if memory costs, supply constraints or server margins weaken. Broader pressure on technology stocks from rising Treasury yields, higher oil prices and inflation concerns also weighed on sentiment. Dell Stock Falls Before Earnings
• Negative Sentiment: Reported insider activity was heavily weighted toward selling. The cited data showed no insider purchases over the past six months, while executives and affiliated holders sold shares. This is not necessarily a fundamental signal, but it may temper sentiment following the sharp advance.

Dell Technologies Trading Down 7.3%

NYSE:DELL opened at $422.54 on Wednesday. The company has a market capitalization of $273.85 billion, a P/E ratio of 33.56, a P/E/G ratio of 0.94 and a beta of 1.34. Dell Technologies Inc. has a 12 month low of $110.22 and a 12 month high of $514.00. The business's 50-day moving average is $433.44 and its 200 day moving average is $301.96.

Dell Technologies (NYSE:DELL - Get Free Report) last released its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, beating the consensus estimate of $4.91 by $2.13. Dell Technologies had a negative return on equity of 366.90% and a net margin of 6.28%.The business had revenue of $46.97 billion during the quarter, compared to analysts' expectations of $44.89 billion. During the same quarter last year, the business posted $1.70 EPS. The firm's revenue for the quarter was up 57.7% compared to the same quarter last year. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. On average, research analysts forecast that Dell Technologies Inc. will post 18.32 earnings per share for the current year.

Dell Technologies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Tuesday, October 20th will be issued a $0.63 dividend. The ex-dividend date of this dividend is Tuesday, October 20th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.6%. Dell Technologies's dividend payout ratio (DPR) is 20.02%.

Insiders Place Their Bets

In related news, Director Silver Lake Partners Iv, L.P. sold 138,885 shares of the business's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $398.13, for a total value of $55,294,285.05. Following the sale, the director owned 8,585 shares in the company, valued at approximately $3,417,946.05. The trade was a 94.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Spv-2 L.P. Sl sold 131,040 shares of the company's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $398.13, for a total transaction of $52,170,955.20. Following the sale, the director directly owned 12,619 shares in the company, valued at approximately $5,024,002.47. The trade was a 91.22% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 2,134,674 shares of company stock valued at $870,637,926. 41.50% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

DELL has been the topic of several recent analyst reports. Wells Fargo & Company lifted their target price on Dell Technologies from $505.00 to $545.00 and gave the company an "overweight" rating in a research note on Friday, August 14th. Morgan Stanley upped their price target on Dell Technologies from $430.00 to $434.00 and gave the stock an "equal weight" rating in a research note on Monday, August 24th. Guggenheim raised shares of Dell Technologies to a "buy" rating in a report on Monday, June 1st. Piper Sandler reiterated an "overweight" rating on shares of Dell Technologies in a research report on Wednesday. Finally, The Goldman Sachs Group boosted their target price on shares of Dell Technologies from $230.00 to $500.00 and gave the stock a "buy" rating in a report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $490.68.

Dell Technologies 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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