Dell Technologies (NYSE:DELL) Shares Down 5.1% – Here’s Why

Dell Technologies Inc. (NYSE:DELL)’s stock price was down 5.1% during mid-day trading on Thursday . The company traded as low as $426.00 and last traded at $438.90. Approximately 5,968,691 shares traded hands during mid-day trading, a decline of 29% from the average session 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 Ratings Changes

Several equities research analysts have recently issued reports on the company. Citigroup raised their price target on Dell Technologies from $475.00 to $515.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Daiwa Securities Group upped their price target on Dell Technologies from $170.00 to $465.00 and gave the stock an “outperform” rating in a report on Tuesday, June 2nd. Loop Capital boosted their target price on shares of Dell Technologies from $150.00 to $550.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Susquehanna set a $289.00 price target on shares of Dell Technologies and gave the stock a “neutral” rating in a research report on Friday, May 29th. Finally, Zacks Research upgraded shares of Dell Technologies from a “hold” rating to a “strong-buy” rating in a research note 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’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $494.67.

Dell Technologies Price Performance

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

Dell Technologies (NYSE:DELL) last posted 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. The company had revenue of $43.84 billion during the quarter, compared to analysts’ expectations of $35.74 billion. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. Dell Technologies’s quarterly revenue was up 87.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.55 earnings per share. 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, research analysts anticipate that Dell Technologies Inc. will post 17.77 earnings per share for the current fiscal year.

Dell Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 31st. Shareholders of record on Tuesday, July 21st were paid a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Tuesday, July 21st. Dell Technologies’s dividend payout ratio is presently 20.02%.

Insider Transactions at Dell Technologies

In other news, Director Silver Lake Partners Iv, L.P. sold 68,706 shares of the company’s stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction of $31,160,919.24. Following the completion of the sale, the director directly owned 67,990 shares in the company, valued at approximately $30,836,184.60. This represents a 50.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Lake Group L.L.C. Silver sold 16,679 shares of the firm’s stock in a transaction dated 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 quarter, insiders have sold 3,434,758 shares of company stock worth $1,448,870,683. 41.50% of the stock is currently owned by insiders.

Institutional Trading of Dell Technologies

Several institutional investors and hedge funds have recently modified their holdings of DELL. Commonwealth Retirement Investments LLC acquired a new stake in shares of Dell Technologies in the 4th quarter valued at approximately $25,000. Rossby Financial LCC boosted its stake 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 valued at $26,000 after purchasing an additional 184 shares during the last quarter. Navalign LLC bought a new stake in shares of Dell Technologies in the 4th quarter valued at $29,000. Kemnay Advisory Services Inc. acquired a new stake in shares of Dell Technologies during the fourth quarter worth $29,000. Finally, WealthCollab LLC raised its stake in Dell Technologies by 82.0% during the second quarter. WealthCollab LLC now owns 253 shares of the technology company’s stock worth $31,000 after buying an additional 114 shares during the last quarter. 76.37% of the stock is currently owned by 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.