Dell Technologies (NYSE:DELL) Stock Falls 9.1% – What’s Next?

Dell Technologies Inc. (NYSE:DELL) shares dropped 9.1% during trading on Wednesday. The stock traded as low as $366.62 and last traded at $371.4170. Approximately 10,701,897 shares traded hands during trading, an increase of 31% from the average session volume of 8,190,415 shares. The stock had previously closed at $408.40.

Key Stories Impacting Dell Technologies

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

• Positive Sentiment: Dell expanded its AI cybersecurity offering with quantum-safe encryption, identity-resilience tools and managed threat detection. The additions could strengthen its AI infrastructure pitch, though they have not offset broader market pressure. Dell Technologies shares and AI cybersecurity
• Negative Sentiment: Midterm election results weighed on technology shares, with reports linking the selloff in Dell and HPE to investor reaction to Democratic wins. Dell and HPE fall as election results weigh on tech
• Negative Sentiment: AI-server makers faced additional pressure amid concerns about margins and voter opposition to data-center projects. Dell fell alongside peers, suggesting the move reflected sector-wide worries rather than a Dell-specific announcement. AI-server stocks pressured by margin concerns and data-center opposition

Wall Street Analyst Weigh In

A number of research firms recently commented on DELL. Citigroup lifted their target price on Dell Technologies from $515.00 to $600.00 and gave the stock a “buy” rating in a report on Wednesday, September 2nd. Wells Fargo & Company boosted their price objective on Dell Technologies from $505.00 to $545.00 and gave the company an “overweight” rating in a research report on Friday, August 14th. Susquehanna reiterated a “positive” rating on shares of Dell Technologies in a report on Tuesday, September 29th. Melius Research upped their price objective 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. Finally, Weiss Ratings lowered shares of Dell Technologies from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $569.96.

Dell Technologies Stock Performance

The firm’s 50-day moving average price is $512.25 and its two-hundred day moving average price is $333.10. The stock has a market cap of $236.15 billion, a price-to-earnings ratio of 21.56, a PEG ratio of 0.41 and a beta of 1.45.

Dell Technologies (NYSE:DELL) last released its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.91 by $2.13. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The firm had revenue of $46.97 billion during the quarter, compared to analysts’ expectations of $44.89 billion. During the same period last year, the business earned $1.70 earnings per share. Dell Technologies’s revenue was up 57.7% compared to the same quarter last year. 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. As a group, sell-side analysts expect that Dell Technologies Inc. will post 25.13 earnings per share for the current fiscal year.

Dell Technologies Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Stockholders of record on Tuesday, October 20th were given a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Tuesday, October 20th. Dell Technologies’s payout ratio is presently 14.63%.

Insider Activity at Dell Technologies

In other Dell Technologies news, Director Silver Lake Partners Iv, L.P. sold 91,191 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $517.34, for a total transaction of $47,176,751.94. Following the completion of the sale, the director owned 64,209 shares of the company’s stock, valued at $33,217,884.06. This trade represents a 58.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Spv-2 L.P. Sl sold 83,006 shares of Dell Technologies stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $517.34, for a total value of $42,942,324.04. Following the completion of the sale, the director owned 73,185 shares in the company, valued at $37,861,527.90. This represents a 53.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,819,650 shares of company stock valued at $991,183,596 over the last quarter. 41.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Dell Technologies

Institutional investors have recently made changes to their positions in the stock. AEGON ASSET MANAGEMENT UK Plc purchased a new position in shares of Dell Technologies during the third quarter worth $39,917,000. Gryphon Financial Partners LLC boosted its holdings in Dell Technologies by 8.0% during the 3rd quarter. Gryphon Financial Partners LLC now owns 3,079 shares of the technology company’s stock valued at $1,657,000 after acquiring an additional 228 shares during the period. Leuthold Group LLC grew its position in Dell Technologies by 11.4% in the 3rd quarter. Leuthold Group LLC now owns 33,663 shares of the technology company’s stock valued at $18,109,000 after acquiring an additional 3,441 shares in the last quarter. Retirement Systems of Alabama increased its stake in Dell Technologies by 4.3% during the third quarter. Retirement Systems of Alabama now owns 63,394 shares of the technology company’s stock worth $34,103,000 after purchasing an additional 2,622 shares during the period. Finally, Clear Wave Wealth Management LLC acquired a new stake in shares of Dell Technologies during the third quarter worth about $211,000. 76.37% of the stock is currently owned by institutional investors and hedge funds.

About Dell Technologies

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, peripherals and other end-user devices, as well as servers, storage systems, networking equipment and related infrastructure solutions for businesses, governments and other organizations.

The company also provides consulting, deployment, support, managed and cybersecurity services designed to help customers build and operate their technology environments.