Dell Technologies (NYSE:DELL) Shares Down 5.1% – Should You Sell?

Shares of Dell Technologies Inc. (NYSE:DELL) were down 5.1% on Thursday . The company traded as low as $426.00 and last traded at $438.90. 5,968,691 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 8,397,324 shares. The stock had previously closed at $462.70.

Dell Technologies News Summary

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

• Positive Sentiment: AI infrastructure demand remains a major growth driver. Dell recently reported record quarterly revenue of $43.84 billion, $16.1 billion in AI-optimized server revenue and $24.4 billion in AI orders. Analysts continue to highlight contract wins, including the Volta AI factory and Texas A&M’s IGNITE platform, as evidence of a robust backlog. Dell Technologies Could Be 4% Below Fair Value on AI Infrastructure Wins
• Positive Sentiment: Some analysts see additional upside despite the stock’s sharp rally. Commentary points to rising enterprise IT spending, partnerships with NVIDIA, AMD and Microsoft, and continued AI-server demand. One analysis estimates Dell could still be below fair value, while the reported median analyst price target is $500. After a 250% Rally, Dell Stock Still Has Room to Run
• Neutral Sentiment: Competition in AI servers is intensifying. Hewlett Packard Enterprise and NVIDIA are deepening their alliance, potentially increasing competitive pressure on Dell and Super Micro Computer. However, the broader partnerships also reinforce the strength of the overall AI-infrastructure market. Can HPE’s NVIDIA Alliance Challenge Dell?
• Negative Sentiment: Weak peer results pressured the entire AI-server trade. A major competitor’s softer outlook raised concerns about near-term server demand and caused a sympathy selloff across the sector. Dell’s next earnings report is scheduled for September 3, leaving the stock more sensitive to peer-company read-throughs. Dell Slips as Peer Earnings Pressure AI Server Trade
• Negative Sentiment: Reported insider selling may add to investor caution. Quiver Quantitative data showed substantial sales by company executives and affiliated holders over the past six months, with no reported open-market purchases. These transactions may reflect profit-taking, but they can weigh on sentiment after a steep advance.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on the stock. JPMorgan Chase & Co. raised their price target on shares of Dell Technologies from $280.00 to $500.00 and gave the stock an “overweight” rating in a research note on Friday, May 29th. Mizuho lifted their price objective on Dell Technologies from $435.00 to $500.00 and gave the company an “outperform” rating in a research note on Monday, June 1st. TD Cowen raised their price objective on Dell Technologies from $150.00 to $450.00 and gave the company a “hold” rating in a research report on Friday, May 29th. Raymond James Financial cut shares of Dell Technologies from an “outperform” rating to a “market perform” rating in a research report on Friday, May 29th. Finally, Zacks Research upgraded Dell Technologies from a “hold” rating to a “strong-buy” rating in a report on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $494.67.

Dell Technologies Trading Down 5.1%

The company’s 50-day moving average is $414.15 and its two-hundred day moving average is $256.65. The stock has a market capitalization of $284.45 billion, a P/E ratio of 34.86, a P/E/G ratio of 1.00 and a beta of 1.33.

Dell Technologies (NYSE:DELL) last announced its earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) 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 firm had revenue of $43.84 billion during the quarter, compared to analyst estimates of $35.74 billion. During the same quarter in the prior year, the firm posted $1.55 EPS. Dell Technologies’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 expect that Dell Technologies Inc. will post 17.77 EPS for the current fiscal year.

Dell Technologies Dividend Announcement

The company also recently disclosed 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. The ex-dividend date of this dividend was Tuesday, July 21st. This represents a $2.52 dividend on an annualized basis and a yield of 0.6%. Dell Technologies’s dividend payout ratio (DPR) is presently 20.02%.

Insider Transactions at Dell Technologies

In related news, Director Silver Lake Partners Iv, L.P. sold 189,805 shares of the 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 owned 24,287 shares in the company, valued at approximately $11,123,203.13. This represents a 88.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Spv-2 L.P. Sl sold 175,901 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $457.99, for a total transaction of $80,560,898.99. Following the transaction, the director directly owned 36,659 shares in the company, valued at approximately $16,789,455.41. The trade was a 82.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 3,434,758 shares of company stock worth $1,448,870,683 in the last 90 days. Corporate insiders own 41.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of DELL. Brighton Jones LLC boosted its holdings in Dell Technologies by 42.7% in the fourth quarter. Brighton Jones LLC now owns 3,011 shares of the technology company’s stock worth $347,000 after purchasing an additional 901 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of Dell Technologies in the second quarter worth about $328,000. Marshall Wace LLP acquired a new position in shares of Dell Technologies during the 2nd quarter valued at about $809,000. Gamco Investors INC. ET AL raised its stake in shares of Dell Technologies by 30.2% in the 2nd quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company’s stock valued at $819,000 after acquiring an additional 1,550 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in Dell Technologies by 147.2% in the 2nd quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company’s stock worth $7,112,000 after purchasing an additional 34,538 shares during the last quarter. 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.