Dell Technologies (NYSE:DELL) Stock Falls 3.6% – What’s Next?

Dell Technologies Inc. (NYSE:DELL) dropped 3.6% on Tuesday. The stock traded as low as $321.25 and last traded at $333.8090. 6,480,447 shares changed hands during trading, a decline of 21% from the average daily volume of 8,203,380 shares. The stock had previously closed at $346.31.

Recent Dell Technologies Headlines

Here are a few of the latest headlines about DELL:

• Positive Sentiment: Dell’s reported $95 billion AI-server backlog and record AI orders could support future growth. One analysis argues a shift in which customers are buying AI hardware may create further opportunity, though execution and demand risks remain. Prediction: One AI Trend Could Send Dell Stock Higher
• Neutral Sentiment: Gartner’s forecast for a $957 billion AI-server market points to a large potential market, but it has not offset near-term investor concerns about the AI sector. Super Micro Slides 7% Despite Gartner’s $957 Billion AI Server Forecast
• Negative Sentiment: Reports that Nvidia’s board may consider CEO Jensen Huang’s departure have unsettled AI investors. Dell has fallen alongside Nvidia and other AI hardware names as the market reassesses the sector’s outlook. Today’s Market Movers: CoreWeave, Dell and Super Micro Slide as Nvidia Board Weighs Huang’s Exit

Wall Street Analyst Weigh In

Several brokerages have issued reports on DELL. Bank of America boosted their price objective on shares of Dell Technologies from $505.00 to $600.00 and gave the company a “buy” rating in a research note on Monday, August 31st. JPMorgan Chase & Co. raised their target price on shares of Dell Technologies from $565.00 to $635.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 2nd. Susquehanna reaffirmed a “positive” rating on shares of Dell Technologies in a report on Tuesday, September 29th. Cantor Fitzgerald started coverage on shares of Dell Technologies in a report on Wednesday, September 2nd. They set an “overweight” rating for the company. Finally, Piper Sandler restated an “overweight” rating and issued a $558.00 price objective (up from $497.00) 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 issued a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, Dell Technologies currently has a consensus rating of “Moderate Buy” and a consensus target price of $569.96.

Dell Technologies Price Performance

The company has a market capitalization of $236.41 billion, a price-to-earnings ratio of 21.58, a price-to-earnings-growth ratio of 0.35 and a beta of 1.45. The firm’s 50-day simple moving average is $499.22 and its two-hundred day simple moving average is $339.97.

Dell Technologies (NYSE:DELL) last posted its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.91 by $2.13. The company 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 company’s revenue for the quarter was up 57.7% on a year-over-year basis. During the same period last year, the firm earned $1.70 EPS. 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, analysts expect that Dell Technologies Inc. will post 25.13 EPS for the current fiscal year.

Dell Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th were given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Tuesday, October 20th. Dell Technologies’s payout ratio is presently 14.63%.

Insider Buying and Selling

In other news, Director Silver Lake Partners V. De (Aiv sold 25,494 shares of the firm’s stock in a transaction on Friday, October 9th. The stock was sold at an average price of $582.30, for a total value of $14,845,156.20. Following the completion of the transaction, the director 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 sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Lynn Vojvodich Radakovich sold 2,022 shares of Dell Technologies stock in a transaction on Thursday, October 22nd. The stock was sold at an average price of $460.00, for a total value of $930,120.00. Following the transaction, the director directly owned 25,686 shares of the company’s stock, valued at $11,815,560. This trade represents a 7.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,819,650 shares of company stock valued at $991,183,596 in the last three months. 41.50% of the stock is owned by insiders.

Institutional Trading of Dell Technologies

Several institutional investors and hedge funds have recently modified their holdings of DELL. Kercheville Advisors LLC boosted its stake in shares of Dell Technologies by 13.6% during the 3rd quarter. Kercheville Advisors LLC now owns 18,800 shares of the technology company’s stock worth $10,113,000 after purchasing an additional 2,250 shares during the last quarter. Plato Investment Management Ltd acquired a new stake in Dell Technologies during the second quarter worth approximately $5,913,000. Gabelli Funds LLC boosted its position in Dell Technologies by 49.0% during the first quarter. Gabelli Funds LLC now owns 46,094 shares of the technology company’s stock worth $7,565,000 after acquiring an additional 15,150 shares during the last quarter. Segall Bryant & Hamill LLC purchased a new stake in Dell Technologies in the 1st quarter worth approximately $5,930,000. Finally, Jackson Square Capital LLC grew its stake in Dell Technologies by 15.1% in the 3rd quarter. Jackson Square Capital LLC now owns 17,115 shares of the technology company’s stock worth $9,207,000 after acquiring an additional 2,243 shares during the period. Hedge funds and other institutional investors own 76.37% of the company’s stock.

About Dell Technologies

Dell Technologies is a global technology company that develops, sells and supports computers and related infrastructure. Its products include personal computers, workstations, monitors and peripherals, as well as servers, storage systems and networking equipment for businesses and other organizations. The company also provides technology services and solutions, including support, consulting and offerings related to cloud computing, data management and cybersecurity. Dell serves consumers, businesses, governments and other institutions in markets around the world.