Dell Technologies (NYSE:DELL) Stock Price Down 1.9% - Should You Sell?

Key Points

• Dell shares fell 1.9% to about $552, while trading volume was roughly half its average. Despite the decline, analysts maintain a “Moderate Buy” consensus with an average price target of $569.12.
• Dell reported strong quarterly results, posting $7.04 in adjusted EPS versus the $4.91 estimate and revenue of $46.97 billion, up 57.7% year over year.
• The company declared a quarterly dividend of $0.63, equal to a 0.5% annualized yield, while insiders sold approximately $995 million in stock over the past three months.

Dell Technologies Inc. (NYSE:DELL - Get Free Report)'s share price fell 1.9% on Monday. The company traded as low as $546.00 and last traded at $552.0870. 4,167,209 shares were traded during mid-day trading, a decline of 50% from the average session volume of 8,353,753 shares. The stock had previously closed at $562.52.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on DELL. US Capital Advisors set a $625.00 target price on Dell Technologies in a research report on Wednesday, September 2nd. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Dell Technologies in a research note on Thursday, September 3rd. They set a "hold" rating and a $480.00 price target for the company. Weiss Ratings restated a "buy (b)" rating on shares of Dell Technologies in a report on Wednesday, August 12th. Wells Fargo & Company boosted their price target on Dell Technologies from $505.00 to $545.00 and gave the stock an "overweight" rating in a research report on Friday, August 14th. Finally, Daiwa Securities Group raised their price objective on Dell Technologies from $465.00 to $625.00 and gave the stock an "outperform" rating in a research report on Friday, September 18th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and eight have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $569.12.

Dell Technologies Stock Performance

The business's 50 day moving average is $490.74 and its 200-day moving average is $368.22. The stock has a market cap of $351.02 billion, a price-to-earnings ratio of 32.04, a PEG ratio of 0.58 and a beta of 1.37.

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 the consensus estimate of $4.91 by $2.13. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The firm had revenue of $46.97 billion during the quarter, compared to the consensus estimate of $44.89 billion. During the same quarter in the prior year, the firm earned $1.70 EPS. The company's revenue for the quarter was up 57.7% on a year-over-year basis. 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 anticipate that Dell Technologies Inc. will post 25.13 EPS for the current fiscal year.

Dell Technologies Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be issued 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 0.5%. Dell Technologies's dividend payout ratio is presently 14.63%.

Insider Buying and Selling

In related news, Director Spv-2 L.P. Sl sold 83,006 shares of the 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 sale, the director owned 73,185 shares of the company's stock, valued at approximately $37,861,527.90. This trade represents a 53.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Silver Lake Partners Iv, L.P. sold 91,191 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 $47,176,751.94. Following 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 position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,906,193 shares of company stock worth $994,871,197 over the last three months. Corporate insiders own 41.50% of the company's stock.

Hedge Funds Weigh In On Dell Technologies

A number of hedge funds have recently modified their holdings of the business. Wellington Management Group LLP raised its stake in shares of Dell Technologies by 140.1% in the 2nd quarter. Wellington Management Group LLP now owns 2,526,987 shares of the technology company's stock valued at $1,090,294,000 after acquiring an additional 1,474,347 shares during the period. Deutsche Bank AG increased its stake in Dell Technologies by 24.6% during the 4th quarter. Deutsche Bank AG now owns 5,517,070 shares of the technology company's stock worth $694,489,000 after buying an additional 1,090,336 shares during the period. Bank of America Corp DE increased its holdings in Dell Technologies by 7.6% during the 1st quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company's stock worth $2,362,624,000 after purchasing an additional 1,011,101 shares during the period. Auto Owners Insurance Co increased its position in shares of Dell Technologies by 12,488.0% in the 4th quarter. Auto Owners Insurance Co now owns 522,024 shares of the technology company's stock valued at $6,571,000 after purchasing an additional 517,877 shares during the last quarter. Finally, Renaissance Technologies LLC boosted its position in shares of Dell Technologies by 70.2% during the 1st quarter. Renaissance Technologies LLC now owns 721,577 shares of the technology company's stock worth $118,432,000 after acquiring an additional 297,500 shares in the last quarter. 76.37% of the stock is currently owned by hedge funds and other institutional investors.

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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