Dell Technologies (NYSE:DELL) Shares Climb 7.4% - Still a Buy?

Key Points

• Dell shares rose 7.4% to about $501.74, supported by strong AI infrastructure demand, a reported $95 billion AI backlog, record server orders and expanded cybersecurity offerings.
• Recent results exceeded expectations, with quarterly EPS of $7.04 versus $4.91 expected and revenue of $46.97 billion, up 57.7% year over year. Analysts collectively rate the stock a “Moderate Buy,” with an average price target of $569.96.
• Valuation and sustainability remain concerns: Barclays downgraded the stock over questions about memory-cost-driven growth and enterprise AI demand, while elevated prices and substantial insider selling could add volatility.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) were up 7.4% during mid-day trading on Tuesday. The stock traded as high as $507.39 and last traded at $501.7420. Approximately 6,391,902 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 8,234,729 shares. The stock had previously closed at $467.09.

Dell Technologies News Roundup

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

• Positive Sentiment: Dell announced expanded cybersecurity and resilience capabilities spanning AI environments, identity systems and infrastructure. The update reinforces Dell’s positioning as an end-to-end provider of AI servers, storage and enterprise technology. Dell Stock Is Surging Tuesday: What’s Happening?
• Positive Sentiment: Reports highlighting Dell’s approximately $95 billion AI backlog, record server orders and growing customer demand suggest that the AI hardware cycle may remain strong. Dell is also expanding its NVIDIA-backed AI factory and agentic-AI offerings for on-premises deployments. Dell: $95 Billion AI Backlog
• Positive Sentiment: Honeywell’s Forge Plant Cognition platform uses NVIDIA technology and Dell AI infrastructure for industrial customers, including refining and petrochemical operations. This provides a tangible example of Dell’s AI systems being used beyond traditional data centers. Honeywell Launches Industrial AI Platform
• Neutral Sentiment: Analyst comparisons with Marvell and Diebold Nixdorf frame Dell as a large-scale, diversified AI infrastructure provider, but do not represent new company guidance or a change in fundamentals. Dell Technologies vs. Marvell Technology
• Neutral Sentiment: Director Lynn Vojvodich Radakovich sold $930,120 of Dell shares under a pre-arranged Rule 10b5-1 plan. The sale reduced her holdings by 7.3%, but the planned nature of the transaction limits its significance as a signal about Dell’s outlook. Dell SEC Form 4 Filing
• Negative Sentiment: Barclays’ downgrade remains an overhang. The firm questioned whether Dell’s growth reflects higher memory prices rather than a meaningful acceleration in enterprise AI demand, contributing to a sharp recent decline and ongoing volatility. Dell Stock Sinks After Barclays Downgrade
• Negative Sentiment: Commentary urging investors to wait for a pullback reflects concerns that Dell’s substantial prior gains and elevated valuation require strong cash generation, margins and sustained AI demand to justify the stock price. Dell and HPE AI Infrastructure Concerns

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the stock. Piper Sandler reiterated an "overweight" rating and set a $558.00 target price (up from $497.00) on shares of Dell Technologies in a research note on Wednesday, September 2nd. Barclays lowered Dell Technologies from an "overweight" rating to an "equal weight" rating and cut their price objective for the stock from $603.00 to $574.00 in a report on Wednesday, October 14th. Daiwa Securities Group upped their price objective on Dell Technologies from $465.00 to $625.00 and gave the company an "outperform" rating in a research report on Friday, September 18th. Evercore reissued an "outperform" rating and issued a $650.00 target price on shares of Dell Technologies in a report on Wednesday, September 9th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Dell Technologies in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $569.96.

Dell Technologies Trading Up 7.4%

The firm has a 50 day moving average price of $512.73 and a 200 day moving average price of $321.50. The stock has a market capitalization of $319.01 billion, a PE ratio of 29.12, a price-to-earnings-growth ratio of 0.47 and a beta of 1.37.

Dell Technologies (NYSE:DELL - Get Free Report) last released its 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. The company had revenue of $46.97 billion for the quarter, compared to the consensus estimate 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 quarterly revenue was up 57.7% compared to the same quarter last year. During the same period in the previous year, the business earned $1.70 earnings per share. 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, equities research analysts expect that Dell Technologies Inc. will post 25.13 EPS for the current year.

Dell Technologies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Tuesday, October 20th will be given a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, October 20th. Dell Technologies's dividend payout ratio (DPR) is presently 14.63%.

Insiders Place Their Bets

In other Dell Technologies news, Director Spv-2 L.P. Sl sold 83,006 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $517.34, for a total transaction of $42,942,324.04. Following the sale, the director directly owned 73,185 shares of the company's stock, valued at $37,861,527.90. This trade represents a 53.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Silver Lake Partners Iv, L.P. sold 91,191 shares of the firm's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $517.34, for a total transaction of $47,176,751.94. Following the transaction, the director directly owned 64,209 shares of the company's stock, valued at $33,217,884.06. The trade was a 58.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,819,650 shares of company stock worth $991,183,596. 41.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dell Technologies

Several institutional investors have recently modified their holdings of the stock. Bank of America Corp DE raised its holdings in Dell Technologies by 7.6% during the 1st quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company's stock valued at $2,362,624,000 after buying an additional 1,011,101 shares during the period. Wellington Management Group LLP grew its stake in 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 acquiring an additional 1,474,347 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its position in shares of Dell Technologies by 107.8% during the third quarter. Robeco Institutional Asset Management B.V. now owns 651,154 shares of the technology company's stock worth $350,288,000 after acquiring an additional 337,836 shares during the period. NewEdge Advisors LLC increased its position in shares of Dell Technologies by 5.0% during the second quarter. NewEdge Advisors LLC now owns 480,589 shares of the technology company's stock worth $207,355,000 after acquiring an additional 22,924 shares during the period. Finally, Dimensional Fund Advisors LP grew its stake in Dell Technologies by 3.0% in the first quarter. Dimensional Fund Advisors LP now owns 961,675 shares of the technology company's stock worth $157,869,000 after purchasing an additional 27,668 shares in the last quarter. 76.37% of the stock is owned by institutional investors.

Dell Technologies Company Profile

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, peripherals and other end-user devices, as well as servers, storage systems, networking equipment and related infrastructure solutions for businesses, governments and other organizations.

The company also provides consulting, deployment, support, managed and cybersecurity services designed to help customers build and operate their technology environments.

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