Dell Technologies (NYSE:DELL) Trading Down 3.6% – Here’s What Happened

Dell Technologies Inc. (NYSE:DELL)’s stock price fell 3.6% during trading on Friday . The company traded as low as $452.90 and last traded at $455.22. Approximately 3,922,370 shares traded hands during trading, a decline of 51% from the average daily volume of 8,072,210 shares. The stock had previously closed at $472.26.

Dell Technologies News Roundup

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

• Positive Sentiment: AI demand is driving bullish expectations. Dell reportedly has a record $51.3 billion AI-server backlog, while continued data-center investment is supporting Infrastructure Solutions Group growth. Analysts expect roughly $44 billion-$45 billion in quarterly revenue and more than 100% year-over-year EPS growth. Dell AI Server Backlog
• Positive Sentiment: Recent execution supports investor optimism. Dell’s prior quarter substantially exceeded consensus estimates, and analysts see potential for another earnings beat and raised outlook. The stock has also shown relative strength and remains close to its recent high. Dell Prior Earnings Beat
• Neutral Sentiment: Large post-earnings volatility is expected. Options-market pricing indicates traders anticipate a meaningful move following the earnings release. This could benefit the stock if results exceed elevated expectations, but it also raises downside risk if guidance disappoints. Expected Dell Earnings Move
• Negative Sentiment: Tariff concerns are weighing on the shares. Possible semiconductor tariffs affecting servers and PCs have prompted caution because higher component costs could pressure demand and profitability. Dell Tariff Concerns
• Negative Sentiment: Capacity and margin risks remain. Dell may be unable to build AI servers quickly enough, while supply constraints, pricing pressure and the relatively low margins of high-volume server sales could limit the earnings benefit from strong demand. Dell Server Capacity Risks

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Guggenheim raised Dell Technologies to a “buy” rating in a report on Monday, June 1st. JPMorgan Chase & Co. raised their price objective on Dell Technologies from $280.00 to $500.00 and gave the stock an “overweight” rating in a research report on Friday, May 29th. Jefferies Financial Group cut Dell Technologies to a “hold” rating in a report on Monday, June 1st. Mizuho increased their target price on shares of Dell Technologies from $435.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday, June 1st. Finally, The Goldman Sachs Group raised their price target on shares of Dell Technologies from $230.00 to $500.00 and gave the stock a “buy” rating in a report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Dell Technologies has a consensus rating of “Moderate Buy” and a consensus price target of $485.24.

Dell Technologies Stock Down 3.6%

The firm has a market cap of $295.03 billion, a price-to-earnings ratio of 36.16, a PEG ratio of 0.95 and a beta of 1.33. The firm has a 50 day moving average of $432.75 and a 200 day moving average of $296.29.

Dell Technologies (NYSE:DELL) last posted its quarterly earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.96 by $1.90. The firm had revenue of $43.84 billion for the quarter, compared to analysts’ expectations of $35.74 billion. Dell Technologies had a negative return on equity of 366.90% and a net margin of 6.28%.The company’s revenue for the quarter was up 87.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.55 EPS. Equities analysts expect that Dell Technologies Inc. will post 18.32 EPS for the current year.

Dell Technologies Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, July 31st. Investors of record on Tuesday, July 21st were given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Tuesday, July 21st. Dell Technologies’s payout ratio is presently 20.02%.

Insider Buying and Selling at Dell Technologies

In other news, Director Spv-2 L.P. Sl sold 175,901 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $457.99, for a total value of $80,560,898.99. Following the completion of the sale, the director directly owned 36,659 shares in the company, valued at $16,789,455.41. This trade represents a 82.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Silver Lake Partners Iv, L.P. sold 189,805 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $457.99, for a total value of $86,928,791.95. Following the transaction, the director directly owned 24,287 shares in the company, valued at approximately $11,123,203.13. This trade represents a 88.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 3,436,780 shares of company stock worth $1,449,756,744. 41.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Commonwealth Retirement Investments LLC bought a new stake in shares of Dell Technologies during the fourth quarter worth about $25,000. Rossby Financial LCC boosted its stake in Dell Technologies by 968.4% during the 4th quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock valued at $26,000 after purchasing an additional 184 shares during the last quarter. Cornerstone Financial Management LLC increased its holdings in Dell Technologies by 56.1% during 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. Navalign LLC purchased a new stake in shares of Dell Technologies in the fourth quarter worth approximately $29,000. Finally, Kemnay Advisory Services Inc. bought a new position in shares of Dell Technologies in the fourth quarter valued at approximately $29,000. Institutional investors and hedge funds own 76.37% of the company’s stock.

About Dell Technologies

Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments.

Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions.