Dell Technologies (NYSE:DELL) Trading Down 7% – Here’s What Happened

Dell Technologies Inc. (NYSE:DELL)’s share price was down 7% during mid-day trading on Tuesday . The stock traded as low as $426.15 and last traded at $433.7150. Approximately 20,497,688 shares were traded during mid-day trading, an increase of 116% from the average daily volume of 9,504,272 shares. The stock had previously closed at $466.4410.

More Dell Technologies News

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

• Positive Sentiment: Wall Street is getting more bullish, with multiple firms lifting price targets sharply higher, including Goldman Sachs, Bernstein, Citic Securities, Daiwa, and others, reinforcing the view that Dell still has upside after its recent run.Citic Securities price target raise
• Positive Sentiment: Demand for AI servers remains the central catalyst: Dell’s earnings strength, large backlog, and commentary that it is “the general contractor” of the AI buildout are keeping investors focused on continued infrastructure spending.AI buildout article
• Positive Sentiment: Nvidia’s push into AI PCs is also seen as a new growth avenue for Dell, with Dell laptops expected to be among the first to use Nvidia’s new PC chip, potentially expanding Dell’s consumer and enterprise hardware opportunity.Nvidia PC chip article
• Positive Sentiment: Dell’s new XPS 13 launch is helping sentiment too, because it gives the company a fresh consumer-laptop story and positions it directly against Apple’s MacBook Neo while the stock is already being driven by AI momentum.Reuters XPS 13 article
• Neutral Sentiment: Coverage around HPE’s huge earnings beat is indirectly supportive for Dell because it validates strong AI-server demand across the industry, but it also reminds investors that Dell faces rising competition from other infrastructure vendors.HPE AI mania article
• Negative Sentiment: Some analysts and commentators are starting to warn that Dell’s valuation may be getting ahead of fundamentals after the sharp rally, which could create volatility if expectations become too stretched.Valuation warning article
• Negative Sentiment: One headline noted Dell was slipping intraday and could snap its winning streak, reflecting that some traders are taking profits even amid the broader AI enthusiasm.Dell stock streak article

Analysts Set New Price Targets

DELL has been the subject of a number of research analyst reports. Royal Bank Of Canada assumed coverage on shares of Dell Technologies in a research note on Friday. They issued an “outperform” rating for the company. Mizuho lifted their price objective on Dell Technologies from $435.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday. Raymond James Financial lowered Dell Technologies from an “outperform” rating to a “market perform” rating in a research note on Friday. Guggenheim upgraded Dell Technologies to a “buy” rating in a report on Monday. Finally, TD Cowen increased their target price on Dell Technologies from $150.00 to $450.00 and gave the stock a “hold” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Dell Technologies presently has a consensus rating of “Moderate Buy” and an average target price of $475.76.

Dell Technologies Stock Performance

The company has a market capitalization of $280.07 billion, a price-to-earnings ratio of 34.45, a P/E/G ratio of 1.55 and a beta of 1.30. The business’s 50-day simple moving average is $223.02 and its 200-day simple moving average is $161.80.

Dell Technologies (NYSE:DELL) last released 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 company had revenue of $43.84 billion for the quarter, compared to the consensus estimate of $35.74 billion. During the same period in the prior year, the company posted $1.55 EPS. The company’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. On average, analysts forecast that Dell Technologies Inc. will post 12.21 earnings per share for the current year.

Insider Activity

In other Dell Technologies news, insider William F. Scannell sold 143,067 shares of the firm’s stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $165.00, for a total transaction of $23,606,055.00. Following the sale, the insider directly owned 21,779 shares in the company, valued at approximately $3,593,535. This trade represents a 86.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, COO Jeffrey W. Clarke sold 116,000 shares of the firm’s stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $182.48, for a total transaction of $21,167,680.00. Following the transaction, the chief operating officer directly owned 1,687,414 shares of the company’s stock, valued at $307,919,306.72. This represents a 6.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 3,071,687 shares of company stock worth $501,560,818. Corporate insiders own 41.50% of the company’s stock.

Hedge Funds Weigh In On Dell Technologies

Several hedge funds and other institutional investors have recently made changes to their positions in DELL. Brighton Jones LLC grew its stake in shares of Dell Technologies by 42.7% in the fourth quarter. Brighton Jones LLC now owns 3,011 shares of the technology company’s stock valued at $347,000 after buying an additional 901 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of Dell Technologies during the second quarter worth $328,000. Marshall Wace LLP acquired a new position in Dell Technologies in the second quarter valued at about $809,000. Gamco Investors INC. ET AL raised its stake in Dell Technologies by 30.2% in the second quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company’s stock valued at $819,000 after purchasing an additional 1,550 shares in the last quarter. Finally, NewEdge Advisors LLC raised its stake in Dell Technologies by 147.2% in the second quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company’s stock valued at $7,112,000 after purchasing an additional 34,538 shares in the last quarter. 76.37% of the stock is owned by institutional investors.

Dell Technologies Company Profile

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.