Dell Technologies (NYSE:DELL) Stock Falls 7.7% - What's Next?

Key Points

• Dell shares fell 7.7% to about $391.74, with the decline bringing the stock well below its 50-day moving average of $513.74.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $569.96, despite Barclays downgrading the stock to “Equal Weight.”
• Dell reported strong quarterly results, including $7.04 in EPS versus the $4.91 estimate and revenue of $46.97 billion, up 57.7% year over year; the company also declared a quarterly dividend of $0.63 per share.

Dell Technologies Inc. (NYSE:DELL - Get Free Report) fell 7.7% on Monday. The stock traded as low as $391.25 and last traded at $391.7370. Approximately 6,436,573 shares were traded during mid-day trading, a decline of 21% from the average session volume of 8,194,189 shares. The stock had previously closed at $424.30.

Analyst Ratings Changes

DELL has been the topic of several analyst reports. Barclays downgraded Dell Technologies from an "overweight" rating to an "equal weight" rating and dropped their target price for the company from $603.00 to $574.00 in a report on Wednesday, October 14th. Mizuho upped their price target on Dell Technologies from $600.00 to $650.00 and gave the stock an "outperform" rating in a report on Tuesday, October 6th. Melius Research increased their price objective on shares of Dell Technologies from $650.00 to $735.00 and gave the company a "buy" rating in a research report on Wednesday, September 2nd. Royal Bank Of Canada initiated coverage on shares of Dell Technologies in a research note on Thursday, September 10th. They set an "outperform" rating and a $640.00 price objective on the stock. Finally, JPMorgan Chase & Co. boosted their target price on shares of Dell Technologies from $565.00 to $635.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 2nd. One research 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's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $569.96.

Dell Technologies Trading Down 7.7%

The stock has a 50-day simple moving average of $513.74 and a 200-day simple moving average of $330.29. The company has a market capitalization of $249.07 billion, a price-to-earnings ratio of 22.74, a price-to-earnings-growth ratio of 0.44 and a beta of 1.45.

Dell Technologies (NYSE:DELL - Get Free Report) last released its quarterly 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 business 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 business's quarterly revenue was up 57.7% compared to the same quarter last year. During the same quarter last year, the company 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, research analysts forecast that Dell Technologies Inc. will post 25.13 EPS for the current year.

Dell Technologies Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Tuesday, October 20th were issued a $0.63 dividend. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Tuesday, October 20th. Dell Technologies's payout ratio is 14.63%.

Insider Buying and Selling at Dell Technologies

In other Dell Technologies news, Director Egon Durban sold 1,850 shares of the business's stock in a transaction on Wednesday, September 23rd. The shares were sold at an average price of $548.40, for a total transaction of $1,014,540.00. Following the completion of the sale, the director owned 1,405,236 shares in the company, valued at $770,631,422.40. The trade was a 0.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Silver Lake Partners V. De (Aiv sold 25,494 shares of the stock in a transaction on Friday, October 9th. The stock was sold at an average price of $582.30, for a total transaction of $14,845,156.20. Following the sale, the director directly owned 22,686 shares in the company, valued at $13,210,057.80. This trade represents a 52.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,819,650 shares of company stock worth $991,183,596. 41.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Dell Technologies

A number of institutional investors have recently modified their holdings of DELL. MMA Asset Management LLC acquired a new position in shares of Dell Technologies during the third quarter worth approximately $474,000. QTR Family Wealth LLC raised its stake in Dell Technologies by 12.6% during the 3rd quarter. QTR Family Wealth LLC now owns 555 shares of the technology company's stock valued at $299,000 after acquiring an additional 62 shares in the last quarter. Chicago Partners Investment Group LLC boosted its position in Dell Technologies by 19.7% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 12,371 shares of the technology company's stock worth $5,647,000 after acquiring an additional 2,034 shares during the period. 3Chopt Investment Partners LLC boosted its position in Dell Technologies by 5.8% during the 3rd quarter. 3Chopt Investment Partners LLC now owns 4,074 shares of the technology company's stock worth $2,192,000 after acquiring an additional 222 shares during the period. Finally, Compass Financial Management LLC grew its stake in shares of Dell Technologies by 79.0% in the third quarter. Compass Financial Management LLC now owns 7,170 shares of the technology company's stock worth $3,857,000 after purchasing an additional 3,164 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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