Dell Technologies (NYSE:DELL) Shares Gap Down - What's Next?

Key Points

• Dell shares opened sharply lower, at $336.09 versus the prior close of $373.68, before recovering to about $355.95. The article cites investor concerns around Nvidia as a possible pressure on AI-related stocks.
• Dell reported quarterly EPS of $7.04, above the $4.91 consensus, while revenue reached $46.97 billion, up 57.7% year over year. Its reported $95 billion AI-server backlog is a potential growth driver.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $569.96, despite the day’s decline.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) shares gapped down before the market opened on Thursday. The stock had previously closed at $373.68, but opened at $336.09. Dell Technologies shares last traded at $355.9450, with a volume of 1,934,064 shares trading hands.

Key Dell Technologies News

Investors following DELL have been watching these news items:

• Positive Sentiment: Dell’s reported $95 billion AI-server backlog and record AI orders support its growth outlook. One analysis argues that a shift in the buyers of AI hardware could create further upside, though execution and other risks remain. Read article: Prediction: One AI Trend Could Send Dell Stock Higher
• Positive Sentiment: A University of Alabama deployment of Dell high-performance computing, AI and data infrastructure adds a concrete customer example for the company’s enterprise business. Read article: Dell Technologies announces UA is deploying Dell HPC, AI, data infrastructure
• Negative Sentiment: Reports that Nvidia’s board may consider CEO Jensen Huang’s departure have unsettled investors. Because Dell’s AI-server business depends on the broader AI hardware ecosystem, concerns about Nvidia are weighing on Dell and other related stocks. Read article: Today’s Market Movers: CoreWeave, Dell and Super Micro Slide

Wall Street Analysts Forecast Growth

DELL has been the subject of a number of recent research reports. Fox Advisors raised Dell Technologies from an "equal weight" rating to an "overweight" rating and set a $625.00 target price for the company in a report on Wednesday, September 2nd. Morgan Stanley lifted their target price on shares of Dell Technologies from $499.00 to $511.00 and gave the company an "equal weight" rating in a research note on Monday, September 21st. TD Cowen boosted their target price on Dell Technologies from $500.00 to $550.00 and gave the stock a "hold" rating in a report on Tuesday, September 29th. Susquehanna restated a "positive" rating on shares of Dell Technologies in a research report on Tuesday, September 29th. Finally, Cantor Fitzgerald started coverage on Dell Technologies in a research note on Wednesday, September 2nd. They issued an "overweight" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $569.96.

Dell Technologies Stock Up 0.0%

The stock has a market cap of $237.67 billion, a price-to-earnings ratio of 21.58, a PEG ratio of 0.35 and a beta of 1.45. The stock's fifty day moving average is $499.22 and its 200-day moving average is $339.97.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.91 by $2.13. Dell Technologies had a negative return on equity of 578.85% and a net margin of 7.53%. The company had revenue of $46.97 billion during the quarter, compared to the consensus estimate of $44.89 billion. During the same period in the prior year, the company earned $1.70 earnings per share. The company'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. As a group, equities research analysts predict that Dell Technologies Inc. will post 25.13 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Tuesday, October 20th were given a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Tuesday, October 20th. Dell Technologies's payout ratio is presently 14.63%.

Insiders Place Their Bets

In other news, Director Silver Lake Partners Iv, L.P. sold 91,191 shares of the stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $517.34, for a total transaction of $47,176,751.94. Following the sale, the director directly owned 64,209 shares of the company's stock, valued at approximately $33,217,884.06. This represents a 58.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Spv-2 L.P. Sl sold 83,006 shares of the business's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $517.34, for a total value of $42,942,324.04. Following the transaction, 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 position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,819,650 shares of company stock worth $991,183,596. Corporate insiders own 41.50% of the company's stock.

Institutional Trading of Dell Technologies

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Collective Family Office LLC raised its position in shares of Dell Technologies by 1.5% in the 3rd quarter. Collective Family Office LLC now owns 1,299 shares of the technology company's stock worth $699,000 after acquiring an additional 19 shares in the last quarter. North Star Investment Management Corp. boosted its position in shares of Dell Technologies by 0.3% during the 3rd quarter. North Star Investment Management Corp. now owns 6,992 shares of the technology company's stock valued at $3,761,000 after purchasing an additional 21 shares in the last quarter. Cornerstone Financial Management LLC grew its stake in Dell Technologies by 56.1% during the second quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company's stock worth $28,000 after purchasing an additional 23 shares during the period. Beaumont Financial Advisors LLC grew its stake in Dell Technologies by 0.3% during the third quarter. Beaumont Financial Advisors LLC now owns 8,713 shares of the technology company's stock worth $4,687,000 after purchasing an additional 24 shares during the period. Finally, Blue Bell Private Wealth Management LLC increased its holdings in Dell Technologies by 5.4% in the third quarter. Blue Bell Private Wealth Management LLC now owns 469 shares of the technology company's stock worth $252,000 after purchasing an additional 24 shares in the last quarter. 76.37% of the stock is currently owned by institutional investors and hedge funds.

About Dell Technologies

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.

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