Dell Technologies (NYSE:DELL) Stock Falls 15.2% - Time to Sell?

Key Points

• Dell shares fell 15.2% to about $315.83 on volume 71% above average, amid a broader sell-off in AI and data-center stocks.
• Investors are weighing concerns that political opposition could delay data-center projects and that memory shortages may raise AI-hardware costs, potentially pressuring demand for Dell’s servers.
• Dell’s AI-server backlog and recent results offer a counterpoint: quarterly revenue rose 57.7% year over year and EPS beat estimates. Analysts’ consensus rating is “Moderate Buy,” with a $569.96 average price target.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) traded down 15.2% during trading on Thursday. The company traded as low as $315.00 and last traded at $315.8290. 14,066,500 shares were traded during mid-day trading, an increase of 71% from the average daily volume of 8,211,187 shares. The stock had previously closed at $372.36.

Key Dell Technologies News

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

• Positive Sentiment: Dell’s AI-server backlog and expanding AI infrastructure and cybersecurity offerings could support its longer-term growth. A CrowdStrike security offering integrated with Dell’s AI Factory and NVIDIA is one example of Dell’s push to provide more of the enterprise AI stack. AI Server Backlog Could Reshape The Dell Stock Story
• Positive Sentiment: One analysis argues the pullback has eased valuation concerns while Dell is still expected to deliver solid growth, potentially attracting investors who view the sell-off as an opportunity. Why It’s Time to Buy the Pullback in Dell Stock
• Negative Sentiment: The main pressure is a second day of selling in AI and data-center stocks after the U.S. midterm elections. Investors are concerned that political shifts and local opposition could delay data-center construction; UBS estimates that nearly one-third of U.S. capacity planned for 2028 could be delayed if construction pauses spread. That could weigh on demand expectations for Dell’s AI servers. The AI Selloff Is Getting Worse
• Negative Sentiment: Warnings about memory shortages and renewed weakness across chip stocks are adding to concerns about AI-hardware costs and supply. The pressure is affecting other server makers as well, suggesting Dell’s decline is part of a broader sector sell-off. AI Hardware Sell-Off Hits Dell and Peers

Analysts Set New Price Targets

DELL has been the topic of several research reports. TD Cowen lifted their price target on shares of Dell Technologies from $500.00 to $550.00 and gave the company a "hold" rating in a report on Tuesday, September 29th. Fox Advisors raised shares of Dell Technologies from an "equal weight" rating to an "overweight" rating and set a $625.00 price objective for the company in a research note on Wednesday, September 2nd. KeyCorp reissued a "sector weight" rating on shares of Dell Technologies in a research note on Wednesday, September 2nd. Weiss Ratings lowered shares of Dell Technologies from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday. Finally, US Capital Advisors set a $625.00 target price on shares of Dell Technologies in a research note on Wednesday, September 2nd. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $569.96.

Dell Technologies Trading Down 15.2%

The firm's 50-day moving average is $510.65 and its 200 day moving average is $334.36. The firm has a market capitalization of $200.81 billion, a price-to-earnings ratio of 18.33, a P/E/G ratio of 0.42 and a beta of 1.45.

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 for the quarter, topping analysts' consensus estimates 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 net margin of 7.53% and a negative return on equity of 578.85%. The company's revenue for the quarter was up 57.7% compared to the same quarter last year. During the same period in the previous year, the firm 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. Analysts predict that Dell Technologies Inc. will post 25.13 EPS for the current year.

Dell Technologies Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Tuesday, October 20th were issued a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Tuesday, October 20th. Dell Technologies's dividend payout ratio is presently 14.63%.

Insider Buying and Selling at Dell Technologies

In other news, Director Silver Lake Partners Iv, L.P. sold 91,191 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 $47,176,751.94. Following the completion of the transaction, the director directly owned 64,209 shares in the company, valued at $33,217,884.06. This trade represents a 58.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Spv-2 L.P. Sl sold 83,006 shares of Dell Technologies stock in a transaction that occurred 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 completion of the transaction, the director directly owned 73,185 shares in the company, valued at approximately $37,861,527.90. This represents a 53.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 1,819,650 shares of company stock valued at $991,183,596. 41.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dell Technologies

Several institutional investors and hedge funds have recently made changes to their positions in DELL. Noble Wealth Management PBC lifted 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 worth $25,000 after acquiring an additional 25 shares during the last quarter. Cornerstone Financial Management LLC grew its position in Dell Technologies by 56.1% in the second quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company's stock worth $28,000 after acquiring an additional 23 shares in the last quarter. Premier Financial Group bought a new position in Dell Technologies in the second quarter valued at $34,000. Byrne Asset Management LLC bought a new position in Dell Technologies in the second quarter valued at $38,000. Finally, Retirement Wealth Solutions LLC raised its position in Dell Technologies by 41.3% during the third quarter. Retirement Wealth Solutions LLC now owns 89 shares of the technology company's stock valued at $48,000 after purchasing an additional 26 shares in the last quarter. Institutional investors own 76.37% of the company's stock.

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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