Dell Technologies (NYSE:DELL) Stock Falls 4.8% – Time to Sell?

Dell Technologies Inc. (NYSE:DELL)’s stock price fell 4.8% during trading on Friday. The stock traded as low as $450.00 and last traded at $450.6810. 8,208,835 shares were traded during mid-day trading, a decline of 1% from the average session volume of 8,316,129 shares. The stock had previously closed at $473.39.

Dell Technologies News Summary

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

• Positive Sentiment: Dell’s record AI-server backlog and expanding role in large-scale AI supercomputers support the long-term bull case. Analysts argue the company could remain an under-the-radar AI beneficiary through 2027 as demand for servers and related infrastructure stays strong. Dell Stock Could Be an Under-the-Radar AI Winner
• Positive Sentiment: CEO Michael Dell said just-in-time manufacturing may reduce the company’s exposure to the debt and inventory risks associated with large AI projects. Dell and Honeywell also announced an AI platform using Dell and NVIDIA technology for industrial and smart-building applications, broadening potential enterprise demand. Michael Dell discusses AI investment risks
• Neutral Sentiment: Silver Lake-related entities reported multiple sales of Dell shares totaling roughly $70 million. The transactions reduced certain holdings substantially, but the entities retained significant positions, making the sales difficult to interpret as a definitive change in the company’s outlook. Dell insider ownership filing
• Negative Sentiment: Barclays downgraded Dell to Equal Weight from Overweight, citing limited evidence of an enterprise-AI spending inflection and concerns that its valuation had advanced too far. The firm set a $574 price target, adding to profit-taking after Dell’s major rally. Barclays downgrades Dell over enterprise AI timing
• Negative Sentiment: Investors are questioning whether recent server revenue growth reflects durable AI demand or elevated memory and component prices. Higher input costs could limit margins, while uncertain enterprise spending raises concerns about the sustainability of the backlog. Dell growth concerns and memory prices
• Negative Sentiment: A hotter inflation report increased expectations for tighter Federal Reserve policy, weighing on high-growth technology shares. Financing concerns across AI hardware companies, including Dell, HPE and Super Micro, have intensified the broader retreat. AI stocks fall on inflation concerns

Wall Street Analysts Forecast Growth

DELL has been the subject of a number of research analyst reports. Daiwa Securities Group lifted their price target on shares of Dell Technologies from $465.00 to $625.00 and gave the stock an “outperform” rating in a research note on Friday, September 18th. KeyCorp reissued a “sector weight” rating on shares of Dell Technologies in a report on Wednesday, September 2nd. Melius Research upped their target price on shares of Dell Technologies from $650.00 to $735.00 and gave the company a “buy” rating in a research note on Wednesday, September 2nd. Truist Financial upped their target price on shares of Dell Technologies from $360.00 to $505.00 and gave the company a “hold” rating in a research note on Wednesday, September 2nd. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Dell Technologies in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have given a Hold rating to the company’s stock. According to MarketBeat, Dell Technologies currently has an average rating of “Moderate Buy” and an average price target of $569.96.

Dell Technologies Stock Down 4.8%

The stock has a market cap of $286.55 billion, a price-to-earnings ratio of 26.16, a price-to-earnings-growth ratio of 0.53 and a beta of 1.37. The firm’s 50 day moving average is $514.62 and its two-hundred day moving average is $392.89.

Dell Technologies (NYSE:DELL) last announced its earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, beating the consensus estimate of $4.91 by $2.13. The firm had revenue of $46.97 billion for the quarter, compared to the consensus estimate of $44.89 billion. Dell Technologies had a negative return on equity of 578.85% and a net margin of 7.53%. The firm’s revenue for the quarter was up 57.7% on a year-over-year basis. During the same quarter in the previous year, the business 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 anticipate that Dell Technologies Inc. will post 25.13 EPS for the current fiscal year.

Dell Technologies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Tuesday, October 20th will be paid a dividend of $0.63 per share. The ex-dividend date of this dividend is Tuesday, October 20th. This represents a $2.52 annualized dividend and a yield of 0.6%. Dell Technologies’s dividend payout ratio is currently 14.63%.

Insider Buying and Selling at Dell Technologies

In related news, Director Spv-2 L.P. Sl sold 44,408 shares of the company’s stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $582.30, for a total value of $25,858,778.40. Following the completion of the sale, the director owned 43,740 shares in the company, valued at approximately $25,469,802. This represents a 50.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Silver Lake Partners Iv, L.P. sold 1,800 shares of the firm’s stock in a transaction dated Friday, October 9th. The stock was sold at an average price of $586.40, for a total value of $1,055,520.00. Following the sale, the director owned 1,404,569 shares of the company’s stock, valued at $823,639,261.60. The trade was a 0.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,817,628 shares of company stock worth $990,253,476. 41.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DELL. Bank of America Corp DE boosted its holdings in Dell Technologies by 7.6% in the 1st quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company’s stock valued at $2,362,624,000 after purchasing an additional 1,011,101 shares during the period. Wellington Management Group LLP grew its position in Dell Technologies by 140.1% during the second quarter. Wellington Management Group LLP now owns 2,526,987 shares of the technology company’s stock worth $1,090,294,000 after buying an additional 1,474,347 shares in the last quarter. NewEdge Advisors LLC increased its stake in Dell Technologies by 5.0% during the second quarter. NewEdge Advisors LLC now owns 480,589 shares of the technology company’s stock valued at $207,355,000 after acquiring an additional 22,924 shares during the period. Dimensional Fund Advisors LP increased its stake in Dell Technologies by 3.0% during the first quarter. Dimensional Fund Advisors LP now owns 961,675 shares of the technology company’s stock valued at $157,869,000 after acquiring an additional 27,668 shares during the period. Finally, Swiss National Bank boosted its stake in Dell Technologies by 4.7% during the first quarter. Swiss National Bank now owns 931,008 shares of the technology company’s stock worth $152,806,000 after buying an additional 41,700 shares in the last quarter. 76.37% of the stock is currently owned by institutional investors and hedge funds.

About Dell Technologies

Dell Technologies Inc (NYSE: DELL) is a global technology company that develops, sells and supports information technology hardware, software and services. Its offerings include personal computers, workstations, monitors, accessories and other client devices, as well as enterprise infrastructure products such as servers, storage systems, networking equipment and data protection solutions.

The company also provides technology consulting, support, managed services and infrastructure solutions designed to help organizations operate data centers, private and hybrid clouds, artificial intelligence workloads and digital workplaces.