Dell Technologies (NYSE:DELL) Shares Up 11.8% - Time to Buy?

Key Points

• Dell shares surged 11.8% to about $566.62 amid strong trading volume, reaching an intraday high of $567.75. The rally followed bullish analyst coverage, including RBC’s Outperform rating and $640 price target.
• Dell’s AI infrastructure growth remains the central catalyst, supported by approximately $60.9 billion in AI-server orders, a $95 billion backlog, and quarterly revenue growth of 57.7% with EPS well above expectations.
• Risks include potential AI hardware supply shortages, elevated valuation, a planned $4 billion bond offering, and substantial insider selling. Despite these concerns, analysts’ consensus rating is “Moderate Buy,” with an average price target of $560.24.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) traded up 11.8% during mid-day trading on Friday . The stock traded as high as $567.75 and last traded at $566.6220. 14,327,152 shares traded hands during trading, an increase of 71% from the average daily volume of 8,372,855 shares. The stock had previously closed at $506.62.

Dell Technologies News Summary

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

• Positive Sentiment: Royal Bank of Canada initiated coverage with an Outperform rating and a $640 price target, citing Dell’s exposure to enterprise AI investment, compute modernization, storage expansion and PC refresh cycles. RBC initiates coverage of Dell
• Positive Sentiment: Oracle’s planned approximately $95 billion capital-spending program reinforced the broader AI data-center hardware trade. Dell is viewed as a major supplier of Nvidia-based servers and related equipment, benefiting from continued hyperscaler and enterprise demand. Oracle spending boosts AI hardware stocks
• Positive Sentiment: Dell’s reported approximately $60.9 billion in AI-server orders and a roughly $95 billion backlog continue to support the growth narrative. Recent quarterly results also beat expectations, with $7.04 EPS versus a $4.91 consensus estimate and revenue of $46.97 billion, up 57.7% year over year. Dell AI server orders and backlog
• Neutral Sentiment: Dell is seeking about $4 billion through a bond offering to refinance debt. The transaction could improve financial flexibility, but investors will monitor borrowing costs, leverage and cash-flow conversion as the company expands AI infrastructure capacity. Dell bond offering
• Negative Sentiment: Several insiders, including Silver Lake-affiliated entities and Dell’s chief marketing officer, recently sold substantial amounts of stock. The sales may reflect diversification or liquidity needs, but they could add near-term supply pressure while DELL trades near record levels. Dell insider selling
• Negative Sentiment: Reports of widening supply shortages highlight execution risk: Dell may have difficulty meeting AI demand, while its sharply higher valuation leaves the stock vulnerable to profit-taking if backlog conversion, margins or demand weaken. Dell supply shortages

Analyst Upgrades and Downgrades

DELL has been the subject of a number of research analyst reports. Fox Advisors raised shares of Dell Technologies from an "equal weight" rating to an "overweight" rating and set a $625.00 target price for the company in a research note on Wednesday, September 2nd. The Goldman Sachs Group boosted their price target on Dell Technologies from $510.00 to $570.00 and gave the company a "buy" rating in a report on Wednesday, September 2nd. Citic Securities lifted their target price on Dell Technologies from $160.00 to $505.00 and gave the company a "buy" rating in a research report on Monday, June 1st. Barclays upped their price target on Dell Technologies from $550.00 to $603.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 2nd. Finally, TD Cowen increased their target price on shares of Dell Technologies from $450.00 to $500.00 and gave the stock a "hold" rating in a report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Dell Technologies has an average rating of "Moderate Buy" and an average target price of $560.24.

Dell Technologies Stock Up 11.8%

The stock has a market capitalization of $367.23 billion, a P/E ratio of 32.89, a P/E/G ratio of 0.55 and a beta of 1.34. The stock has a 50 day simple moving average of $447.99 and a two-hundred day simple moving average of $321.75.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $44.89 billion. During the same quarter in the prior year, the business posted $1.70 EPS. The business's revenue 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. Sell-side analysts predict that Dell Technologies Inc. will post 25.14 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be paid a $0.63 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 dividend on an annualized basis and a yield of 0.4%. Dell Technologies's dividend payout ratio (DPR) is currently 14.63%.

Insider Transactions at Dell Technologies

In other news, Director Silver Lake Partners Iv, L.P. sold 91,191 shares of the business's stock in a transaction dated 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 in the company, valued at $33,217,884.06. The trade was a 58.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Spv-2 L.P. Sl sold 83,006 shares of the firm's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $517.34, for a total transaction of $42,942,324.04. Following the completion of the sale, the director 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. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 1,302,611 shares of company stock valued at $624,243,159. Insiders own 41.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Brighton Jones LLC increased its holdings in shares of Dell Technologies by 42.7% in the fourth quarter. Brighton Jones LLC now owns 3,011 shares of the technology company's stock valued at $347,000 after purchasing an additional 901 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of Dell Technologies during the 2nd quarter worth about $328,000. Marshall Wace LLP bought a new stake in shares of Dell Technologies during the 2nd quarter worth about $809,000. Gamco Investors INC. ET AL grew its stake in Dell Technologies by 30.2% in the 2nd quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company's stock valued at $819,000 after buying an additional 1,550 shares during the last quarter. Finally, NewEdge Advisors LLC raised its holdings in Dell Technologies by 147.2% in the 2nd quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company's stock valued at $7,112,000 after acquiring an additional 34,538 shares during the period. 76.37% of the stock is currently 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, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.

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