Dell Technologies (NYSE:DELL) Shares Down 7.3% – Should You Sell?

Dell Technologies Inc. (NYSE:DELL) shares fell 7.3% during mid-day trading on Thursday . The company traded as low as $386.01 and last traded at $394.29. Approximately 6,582,736 shares were traded during trading, a decline of 25% from the average daily volume of 8,737,880 shares. The stock had previously closed at $425.25.

Key Stories Impacting Dell Technologies

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

• Positive Sentiment: Recent articles say Dell is benefiting from strong AI infrastructure demand, with investors viewing it as a cleaner alternative in the AI server space as competitors face scrutiny. Dell is also expanding its AI push in enterprise storage, including the PowerStore Elite launch in India. Dell Stock Gets a ‘Slam Dunk’ as Super Micro Faces Taiwan Office Raid Over Alleged Nvidia Chip Smuggling
• Positive Sentiment: Multiple market notes remain constructive, with analysts lifting price targets and media pieces arguing Dell still has upside despite the sharp rally this year. Dell Stock Price Prediction: The Case for 20%+ Upside
• Positive Sentiment: A new report says most Dell servers are now made in India amid surging local AI demand, which underscores stronger global demand for Dell’s infrastructure products. Majority of Dell servers now made in India amid surge in local AI demand
• Neutral Sentiment: Dell completed its redomestication to Texas and recently drew attention for a director stock sale, which is notable but not necessarily a fundamental shift in the business outlook. Dell Completes Redomestication to Texas Corporation Status
• Negative Sentiment: Some coverage is warning that Dell’s AI boom is coming with margin pressure, noting gross margins have declined as lower-margin AI server revenue becomes a larger share of sales. Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
• Negative Sentiment: Recent insider selling by a Dell director may add some caution after the stock’s big run. Dell Technologies Inc. (NYSE:DELL) – Get Free Report

Wall Street Analyst Weigh In

DELL has been the topic of several research analyst reports. The Goldman Sachs Group boosted their target price 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. Citigroup began coverage on shares of Dell Technologies in a report on Monday, June 1st. They issued an “outperform” rating on the stock. Roth Mkm initiated coverage on shares of Dell Technologies in a research note on Friday, May 29th. They issued a “buy” rating on the stock. HSBC upgraded Dell Technologies to a “buy” rating in a research report on Friday, May 29th. Finally, Susquehanna set a $289.00 target price on Dell Technologies and gave the stock a “neutral” rating in a report on Friday, May 29th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $490.38.

Dell Technologies Price Performance

The business has a 50-day moving average of $325.01 and a 200-day moving average of $204.87. The company has a market capitalization of $255.54 billion, a P/E ratio of 31.32, a P/E/G ratio of 0.92 and a beta of 1.31.

Dell Technologies (NYSE:DELL) last posted its quarterly earnings data 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 net margin of 6.28% and a negative return on equity of 366.90%. The business had revenue of $43.84 billion for the quarter, compared to analysts’ expectations of $35.74 billion. During the same quarter in the previous year, the business posted $1.55 earnings per share. The business’s revenue was up 87.5% compared to the same quarter last year. 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. Sell-side analysts predict that Dell Technologies Inc. will post 17.74 EPS for the current fiscal year.

Dell Technologies Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, July 21st will be given a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Tuesday, July 21st. Dell Technologies’s dividend payout ratio (DPR) is 20.02%.

Insider Buying and Selling

In other news, Director Silver Lake Partners Iv, L.P. sold 39,537 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $403.12, for a total transaction of $15,938,155.44. Following the transaction, the director directly owned 69,916 shares of the company’s stock, valued at approximately $28,184,537.92. This trade represents a 36.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Lynn Vojvodich Radakovich sold 12,022 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $421.00, for a total value of $5,061,262.00. Following the completion of the transaction, the director directly owned 25,267 shares in the company, valued at approximately $10,637,407. This trade represents a 32.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 3,901,953 shares of company stock worth $1,403,598,971 over the last 90 days. Corporate insiders own 41.50% of the company’s stock.

Institutional Trading of Dell Technologies

Hedge funds have recently modified their holdings of the company. Commonwealth Retirement Investments LLC purchased a new stake in Dell Technologies during the fourth quarter valued at approximately $25,000. Rossby Financial LCC boosted its position in shares of Dell Technologies by 968.4% in the 4th quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock worth $26,000 after purchasing an additional 184 shares in the last quarter. Navalign LLC purchased a new position in Dell Technologies during the 4th quarter worth $29,000. Kemnay Advisory Services Inc. acquired a new position in Dell Technologies during the 4th quarter valued at about $29,000. Finally, WealthCollab LLC raised its stake in Dell Technologies by 82.0% in the second quarter. WealthCollab LLC now owns 253 shares of the technology company’s stock valued at $31,000 after buying an additional 114 shares during 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 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.