Dell Technologies (NYSE:DELL) Shares Climb 5.5% - What's Next?

Key Points

• Dell shares rose 5.5% on Monday to $346.50, though trading volume was 22% below its average.
• AI server demand, a reported $95 billion backlog, and raised FY2027 guidance support the growth outlook; however, a recent sharp pullback in AI hardware stocks highlights volatility, and investors are watching earnings for evidence of durable cash flow.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $569.96. Dell’s latest reported quarter also beat earnings and revenue estimates.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) was up 5.5% during trading on Monday. The company traded as high as $354.50 and last traded at $346.4950. Approximately 6,433,601 shares changed hands during trading, a decline of 22% from the average session volume of 8,212,543 shares. The stock had previously closed at $328.53.

Key Dell Technologies News

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

• Positive Sentiment: Dell’s year-long rally has been supported by strong AI server demand, a reported $95 billion backlog, and raised FY2027 guidance—factors that could support continued growth if demand holds. Article: DELL Rallies 130% in a Year: Can AI Momentum Fuel More Gains?
• Positive Sentiment: Dell is expanding cyber-recovery protections for AI and identity systems, positioning its services to address emerging customer security needs. Article: Dell expands cyber recovery to protect AI and identity systems
• Positive Sentiment: A collaboration with Dubai Electricity and Water Authority aims to strengthen smart-infrastructure resilience, offering a potential showcase for Dell’s technology in critical infrastructure. Article: DEWA, Dell Technologies collaborate to enhance smart infrastructure resilience
• Neutral Sentiment: An article flagged an AI-platform upgrade as a focus for Dell shares, but the supplied report did not provide details on the upgrade or its expected financial impact. Article: Dell Technologies stock in focus after AI platform upgrade
• Negative Sentiment: Dell and other AI-hardware stocks have faced a sharp pullback, with Dell reportedly falling about 22% in a week and giving back a substantial portion of its AI-driven gains. The selloff highlights the risk of volatility after a strong run. Article: Celestica and Dell Just Dropped 22% in a Week
• Negative Sentiment: Investors are looking to upcoming earnings for evidence that Dell’s AI growth is delivering sustainable cash flow; results could determine whether the recent rebound is supported by fundamentals. Article: Dell and HPE Were AI Winners Until the Selloff

Analyst Ratings Changes

A number of research firms recently issued reports on DELL. Weiss Ratings downgraded shares of Dell Technologies from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, November 3rd. Fox Advisors raised shares of Dell Technologies from an "equal weight" rating to an "overweight" rating and set a $625.00 price target on the stock in a research note on Wednesday, September 2nd. Cantor Fitzgerald initiated coverage on shares of Dell Technologies in a report on Wednesday, September 2nd. They issued an "overweight" rating on the stock. Wells Fargo & Company lifted their price target on shares of Dell Technologies from $505.00 to $545.00 and gave the company an "overweight" rating in a report on Friday, August 14th. Finally, TD Cowen upped their price objective on Dell Technologies from $500.00 to $550.00 and gave the stock a "hold" rating in a report on Tuesday, September 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $569.96.

Dell Technologies Stock Up 5.5%

The firm has a market cap of $220.31 billion, a price-to-earnings ratio of 20.11, a price-to-earnings-growth ratio of 0.34 and a beta of 1.45. The business has a 50 day moving average price of $504.83 and a 200-day moving average price of $336.43.

Dell Technologies (NYSE:DELL - Get Free Report) last released its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 EPS for the quarter, topping the consensus estimate of $4.91 by $2.13. The firm had revenue of $46.97 billion for the quarter, compared to analyst estimates of $44.89 billion. Dell Technologies had a negative return on equity of 578.85% and a net margin of 7.53%. Dell Technologies's revenue for the quarter was up 57.7% on a year-over-year basis. During the same period in the previous year, the company posted $1.70 EPS. 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. Research analysts anticipate that Dell Technologies Inc. will post 25.13 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Tuesday, October 20th were issued a $0.63 dividend. The ex-dividend date of this dividend was Tuesday, October 20th. This represents a $2.52 annualized dividend and a yield of 0.7%. Dell Technologies's dividend payout ratio is currently 14.63%.

Insider Activity

In other Dell Technologies news, Director Silver Lake Partners V. De (Aiv sold 25,494 shares of the business's stock in a transaction dated Friday, October 9th. The shares were sold at an average price of $582.30, for a total transaction of $14,845,156.20. Following the completion of the transaction, the director directly owned 22,686 shares of the company's stock, valued at $13,210,057.80. The trade was a 52.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Lynn Vojvodich Radakovich sold 2,022 shares of the firm's stock in a transaction on Thursday, October 22nd. The shares were sold at an average price of $460.00, for a total value of $930,120.00. Following the transaction, the director directly owned 25,686 shares in the company, valued at $11,815,560. This trade represents a 7.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,819,650 shares of company stock valued at $991,183,596 over the last quarter. 41.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dell Technologies

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE raised its position in Dell Technologies by 7.6% in the first 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 in the last quarter. Wellington Management Group LLP grew its stake in shares of Dell Technologies by 140.1% in the 2nd quarter. Wellington Management Group LLP now owns 2,526,987 shares of the technology company's stock worth $1,090,294,000 after purchasing an additional 1,474,347 shares during the last quarter. Robeco Institutional Asset Management B.V. grew its stake in shares of Dell Technologies by 107.8% in the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 651,154 shares of the technology company's stock worth $350,288,000 after purchasing an additional 337,836 shares during the last quarter. Russell Investments Group Ltd. raised its holdings in shares of Dell Technologies by 40.3% in the 3rd quarter. Russell Investments Group Ltd. now owns 385,827 shares of the technology company's stock worth $207,659,000 after purchasing an additional 110,756 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its stake in Dell Technologies by 5.0% during the second quarter. NewEdge Advisors LLC now owns 480,589 shares of the technology company's stock valued at $207,355,000 after purchasing an additional 22,924 shares during the last quarter. 76.37% of the stock is owned by institutional investors.

Dell Technologies Company Profile

Dell Technologies is a global technology company that develops, sells and supports computers and related infrastructure. Its products include personal computers, workstations, monitors and peripherals, as well as servers, storage systems and networking equipment for businesses and other organizations.

The company also provides technology services and solutions, including support, consulting and offerings related to cloud computing, data management and cybersecurity. Dell serves consumers, businesses, governments and other institutions in markets around the world.

Founded by Michael Dell in 1984, the company is headquartered in Round Rock, Texas.

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