Dell Technologies (NYSE:DELL) Shares Gap Down – What’s Next?

Dell Technologies Inc. (NYSE:DELL) shares gapped down before the market opened on Friday. The stock had previously closed at $475.51, but opened at $419.03. Dell Technologies shares last traded at $434.6240, with a volume of 1,779,978 shares traded.

Dell Technologies News Summary

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

• Positive Sentiment: Dell’s AI-server business remains a key growth driver. Reports cite a record $95 billion backlog, accelerating storage growth, rising earnings estimates and continued demand for end-to-end enterprise infrastructure. Everpure vs. Dell: Which Data Storage Stock is the Better Buy Now?
• Positive Sentiment: The company is expanding AI security and cyber-resilience capabilities, potentially strengthening its position against Cisco and Hewlett Packard Enterprise as AI-related revenue grows. DELL Expands AI Security Capabilities
• Positive Sentiment: Commentary continues to identify Dell as a founder-led technology company with long-term innovation and global growth potential, while its infrastructure scale and AI backlog provide support for the investment case. Founder-Led Giants Redefining Technology and Global Market Growth
• Neutral Sentiment: Investment-firm commentary is mixed and focused on how Dell’s AI opportunity, valuation and execution compare with competing technology and data-storage companies. What Are Investment Firms Saying About This Stock?
• Negative Sentiment: Intel’s quarterly report flagged prolonged PC-market weakness, raising concern about Dell’s traditional computer business and contributing to a sharp decline in both HP and Dell shares. HPQ, DELL Stocks Plunge After Intel Flags Prolonged PC Market Weakness
• Negative Sentiment: Some investors are questioning whether Dell’s rally has outpaced its fundamentals, citing sharply weaker cash flow and negative shareholders’ equity despite rapid AI-server growth. The Next AI Stock to Break Out May Not Be on Most Investors’ Radar
• Negative Sentiment: A filing disclosed that an account associated with Donald Trump sold as much as $1 million of Dell stock, creating a modest sentiment and insider-activity overhang despite his public support for the company. Trump’s Dell Stock Sale

Analyst Upgrades and Downgrades

Several brokerages have weighed in on DELL. Wells Fargo & Company boosted their price objective on Dell Technologies from $505.00 to $545.00 and gave the company an “overweight” rating in a research report on Friday, August 14th. UBS Group restated an “outperform” rating on shares of Dell Technologies in a report on Wednesday, September 2nd. Sanford C. Bernstein raised their target price on shares of Dell Technologies from $500.00 to $650.00 and gave the stock an “outperform” rating in a report on Wednesday, September 2nd. Bank of America upped their price target on shares of Dell Technologies from $505.00 to $600.00 and gave the company a “buy” rating in a report on Monday, August 31st. Finally, KeyCorp reissued a “sector weight” rating on shares of Dell Technologies in a research 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 company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $569.96.

Dell Technologies Stock Performance

The company’s 50-day moving average price is $513.95 and its 200 day moving average price is $328.78. The stock has a market capitalization of $270.40 billion, a PE ratio of 24.65, a PEG ratio of 0.51 and a beta of 1.37.

Dell Technologies (NYSE:DELL) last announced its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, beating 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 company had revenue of $46.97 billion for the quarter, compared to analysts’ expectations of $44.89 billion. During the same quarter in the previous year, the company earned $1.70 earnings per share. Dell Technologies’s quarterly revenue 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. Analysts expect that Dell Technologies Inc. will post 25.13 earnings per share for the current year.

Dell Technologies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be issued a dividend of $0.63 per share. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.6%. Dell Technologies’s dividend payout ratio is 14.63%.

Insider Buying and Selling

In other news, Director Silver Lake Partners Iv, L.P. sold 91,191 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 $47,176,751.94. Following the completion of the transaction, the director owned 64,209 shares of the company’s stock, valued at approximately $33,217,884.06. This represents a 58.68% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Spv-2 L.P. Sl sold 83,006 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were 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 owned 73,185 shares of the company’s stock, valued at approximately $37,861,527.90. The trade was a 53.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,819,650 shares of company stock worth $991,183,596 in the last quarter. Company insiders own 41.50% of the company’s stock.

Institutional Trading of Dell Technologies

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Noble Wealth Management PBC lifted its holdings in shares of Dell Technologies by 113.6% during the third quarter. Noble Wealth Management PBC now owns 47 shares of the technology company’s stock valued at $25,000 after purchasing an additional 25 shares during the last quarter. Cornerstone Financial Management LLC boosted its position in shares of Dell Technologies by 56.1% in the 2nd quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company’s stock worth $28,000 after purchasing an additional 23 shares in the last quarter. Premier Financial Group purchased a new stake in shares of Dell Technologies in the 2nd quarter worth approximately $34,000. Byrne Asset Management LLC purchased a new stake in shares of Dell Technologies in the 2nd quarter worth approximately $38,000. Finally, Atwood & Palmer Inc. increased its position in Dell Technologies by 860.0% during the 2nd quarter. Atwood & Palmer Inc. now owns 96 shares of the technology company’s stock valued at $41,000 after buying an additional 86 shares in the last quarter. 76.37% of the stock is owned by hedge funds and other institutional investors.

About Dell Technologies

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.