Dell Technologies (NYSE:DELL) Trading Down 9.9% – Here’s Why

Dell Technologies Inc. (NYSE:DELL) fell 9.9% on Wednesday . The stock traded as low as $391.12 and last traded at $412.17. Approximately 12,837,143 shares traded hands during trading, an increase of 48% from the average daily volume of 8,677,491 shares. The stock had previously closed at $457.54.

Dell Technologies News Summary

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

• Negative Sentiment: AI infrastructure and hardware stocks sold off broadly, with Dell hit as traders took profits and worried that demand expectations for AI servers may be peaking. Investors Think Memory Maybe Peaking, says Top Evercore Analyst as DELL Stock Tanks 14%
• Negative Sentiment: Multiple reports pointed to concerns about AI infrastructure overcapacity, suggesting the market is questioning how long the current AI spending cycle can sustain premium valuations for Dell. Dell (DELL) Stock Plunges 13% Amid AI Infrastructure Overcapacity Concerns
• Negative Sentiment: Recent insider selling by Silver Lake-related directors added to bearish sentiment and may have reinforced concerns that some large holders are locking in gains after the run-up. SEC filing for Silver Lake Partners Iv, L.P. sale
• Neutral Sentiment: Despite the selloff, Dell’s recent quarterly results were still very strong, with revenue and EPS far above estimates, and analysts continue to cite a powerful AI server growth story. Dell Technologies Delivers First Quarter Fiscal 2027 Financial Results

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on DELL. Roth Capital assumed coverage on shares of Dell Technologies in a research note on Friday, May 29th. They issued a “buy” rating for the company. Weiss Ratings upgraded Dell Technologies from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 15th. Wells Fargo & Company increased their target price on shares of Dell Technologies from $270.00 to $505.00 and gave the stock an “overweight” rating in a research note on Friday, May 29th. Daiwa Securities Group increased their price objective on Dell Technologies from $170.00 to $465.00 and gave the stock an “outperform” rating in a research report on Tuesday, June 2nd. Finally, Citigroup started coverage on Dell Technologies in a research note on Monday, June 1st. They issued an “outperform” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Dell Technologies has an average rating of “Moderate Buy” and a consensus price target of $492.76.

Dell Technologies Trading Down 9.9%

The business’s fifty day moving average price is $363.26 and its 200-day moving average price is $223.64. The company has a market capitalization of $267.13 billion, a P/E ratio of 32.74, a P/E/G ratio of 0.91 and a beta of 1.31.

Dell Technologies (NYSE:DELL) last released its quarterly earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.96 by $1.90. Dell Technologies had a negative return on equity of 366.90% and a net margin of 6.28%.The business had revenue of $43.84 billion for the quarter, compared to the consensus estimate of $35.74 billion. During the same quarter last year, the business posted $1.55 earnings per share. The company’s revenue for the quarter was up 87.5% on a year-over-year basis. Dell Technologies has set its FY 2027 guidance at 17.900-17.900 EPS and its Q2 2027 guidance at 4.800-4.800 EPS. As a group, equities research analysts forecast that Dell Technologies Inc. will post 17.74 EPS for the current year.

Dell Technologies Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Tuesday, July 21st will be issued 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 of this dividend is Tuesday, July 21st. Dell Technologies’s dividend payout ratio (DPR) is currently 20.02%.

Insider Transactions at Dell Technologies

In other Dell Technologies news, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of the company’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total value of $31,160,919.24. Following the completion of the sale, the director owned 67,990 shares of the company’s stock, valued at $30,836,184.60. This represents a 50.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Lake Group L.L.C. Silver sold 16,679 shares of the stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $396.37, for a total transaction of $6,611,055.23. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 3,816,758 shares of company stock worth $1,516,412,103. 41.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dell Technologies

Several institutional investors and hedge funds have recently added to or reduced their stakes in DELL. Commonwealth Retirement Investments LLC purchased a new position in Dell Technologies during the 4th quarter valued at about $25,000. Rossby Financial LCC grew its holdings in Dell Technologies by 968.4% in the fourth quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock worth $26,000 after purchasing an additional 184 shares during the period. Navalign LLC bought a new position in shares of Dell Technologies during the fourth quarter valued at approximately $29,000. Kemnay Advisory Services Inc. purchased a new position in shares of Dell Technologies during the fourth quarter valued at approximately $29,000. Finally, WealthCollab LLC boosted its position in shares of Dell Technologies by 82.0% in the 2nd quarter. WealthCollab LLC now owns 253 shares of the technology company’s stock worth $31,000 after purchasing an additional 114 shares in the last quarter. Hedge funds and other institutional investors 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.