Dell Technologies (NYSE:DELL) Shares Up 2.3% - Here's Why

Key Points

• Dell shares rose 2.3% amid continued investor enthusiasm for its AI infrastructure business. Evercore and Mizuho raised their price targets to $650, while Wedbush added Dell to its AI “Winner List.”
• Dell reported strong quarterly results, with EPS of $7.04 versus the $4.91 consensus and revenue of $46.97 billion, up 57.7% year over year. Its AI data platform, NVIDIA-powered systems, and AI-focused PCs are expanding growth opportunities beyond traditional servers.
• Despite bullish analyst sentiment, substantial insider selling presents a counterpoint: Silver Lake-affiliated directors sold about 127,000 shares worth $73 million, while insiders sold roughly $920 million of stock in the last quarter.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) rose 2.3% during mid-day trading on Friday. The stock traded as high as $595.06 and last traded at $587.8770. Approximately 5,263,026 shares changed hands during trading, a decline of 36% from the average daily volume of 8,286,515 shares. The stock had previously closed at $574.55.

Key Stories Impacting Dell Technologies

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

• Positive Sentiment: Evercore ISI raised its Dell price target to $650 from $500, adding to a series of bullish analyst revisions. The optimistic view reflects strong demand for AI infrastructure and Dell’s expanding server backlog. Evercore ISI adjusts Dell price target
• Positive Sentiment: Wedbush analyst Dan Ives added DELL to his AI 30 “Winner List,” reinforcing the view that Dell is a major beneficiary of corporate spending on AI servers and data-center infrastructure. Dan Ives updates AI 30
• Positive Sentiment: Dell’s expanded AI Data Platform, NVIDIA-powered acceleration and new AI-focused PCs and workstations support the company’s effort to benefit from AI adoption beyond traditional servers. Its partnership with Accenture also broadens enterprise distribution. Dell AI Data Platform
• Neutral Sentiment: CEO Michael Dell’s high-profile support for Trump Accounts and Dell’s planned employee-family contributions have increased attention around the company, but the initiatives are philanthropic and have limited direct effect on near-term earnings. Dell Trump Accounts benefit
• Negative Sentiment: Several Silver Lake-affiliated directors sold roughly 127,000 Dell shares for about $73 million on October 6, substantially reducing some holdings. The transactions may raise short-term concerns about insider confidence and add selling pressure after the stock’s sharp AI-driven rally. Dell SEC insider filing
• Negative Sentiment: A newly disclosed filing also showed an account associated with President Trump sold between $500,001 and $1 million of Dell stock in August, followed by another smaller sale. While not an operating development, the apparent contrast with his public endorsements could temper sentiment. Trump account Dell stock sales

Analyst Upgrades and Downgrades

A number of research firms recently commented on DELL. Mizuho boosted their price objective on shares of Dell Technologies from $600.00 to $650.00 and gave the stock an "outperform" rating in a report on Tuesday. Evercore reiterated an "outperform" rating and set a $650.00 price target on shares of Dell Technologies in a research report on Wednesday, September 9th. Raymond James Financial boosted their price target on Dell Technologies from $500.00 to $617.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 2nd. US Capital Advisors set a $625.00 price objective on Dell Technologies in a research note on Wednesday, September 2nd. Finally, The Goldman Sachs Group reaffirmed a "buy" rating on shares of Dell Technologies in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, Dell Technologies has an average rating of "Moderate Buy" and an average price target of $571.12.

Dell Technologies Price Performance

The stock has a market cap of $373.78 billion, a price-to-earnings ratio of 34.12, a price-to-earnings-growth ratio of 0.60 and a beta of 1.37. The firm's 50-day moving average is $504.43 and its 200 day moving average is $379.92.

Dell Technologies (NYSE:DELL - Get Free Report) last posted its earnings results 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. The firm had revenue of $46.97 billion during the quarter, compared to the consensus estimate of $44.89 billion. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The company's revenue was up 57.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $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. On average, sell-side analysts forecast that Dell Technologies Inc. will post 25.13 EPS for the current year.

Dell Technologies Announces Dividend

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

Insiders Place Their Bets

In other Dell Technologies news, Director Lynn Vojvodich Radakovich sold 2,022 shares of the company's stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $565.28, for a total transaction of $1,142,996.16. Following the sale, the director owned 25,267 shares in the company, valued at $14,282,929.76. This represents a 7.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Spv-2 L.P. Sl sold 46,323 shares of the firm's stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $575.43, for a total value of $26,655,643.89. Following the transaction, the director owned 22,254 shares in the company, valued at $12,805,619.22. This trade represents a 67.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 1,697,272 shares of company stock worth $920,162,797. Company insiders own 41.50% of the company's stock.

Institutional Investors Weigh In On Dell Technologies

A number of hedge funds have recently made changes to their positions in DELL. Collective Family Office LLC increased its holdings in 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 buying an additional 19 shares in the last quarter. Cornerstone Financial Management LLC lifted its stake in Dell Technologies by 56.1% during the 2nd quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company's stock valued at $28,000 after acquiring an additional 23 shares during the period. Noble Wealth Management PBC boosted its holdings in shares of Dell Technologies by 113.6% during the 3rd quarter. Noble Wealth Management PBC now owns 47 shares of the technology company's stock valued at $25,000 after acquiring an additional 25 shares during the last quarter. Retirement Wealth Solutions LLC grew its position in Dell Technologies by 41.3% in the 3rd quarter. Retirement Wealth Solutions LLC now owns 89 shares of the technology company's stock worth $48,000 after purchasing an additional 26 shares during the period. Finally, Triumph Capital Management increased its position in Dell Technologies by 2.3% during the second quarter. Triumph Capital Management now owns 1,405 shares of the technology company's stock valued at $606,000 after acquiring an additional 32 shares during the last quarter. Institutional investors own 76.37% of the company's stock.

Dell Technologies Company Profile

Dell Technologies Inc NYSE: DELL is a global technology company that develops, sells and supports information technology hardware, software and services. Its offerings include personal computers, workstations, monitors, accessories and other client devices, as well as enterprise infrastructure products such as servers, storage systems, networking equipment and data protection solutions.

The company also provides technology consulting, support, managed services and infrastructure solutions designed to help organizations operate data centers, private and hybrid clouds, artificial intelligence workloads and digital workplaces.

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