Dell Technologies (NYSE:DELL) Shares Up 7.4% – Should You Buy?

Dell Technologies Inc. (NYSE:DELL)’s stock price was up 7.4% during trading on Tuesday. The stock traded as high as $507.39 and last traded at $501.7420. 6,391,902 shares traded hands during mid-day trading, a decline of 22% from the average daily volume of 8,234,729 shares. The stock had previously closed at $467.09.

Dell Technologies News Summary

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

• Positive Sentiment: Analysts view Dell favorably among data-storage and enterprise-infrastructure stocks, citing its large AI-server backlog, accelerating storage growth and upward revisions to earnings estimates. Everpure vs. Dell: Which Data Storage Stock is the Better Buy Now?
• Positive Sentiment: Dell expanded security and cyber-resilience products for AI environments, identity systems and infrastructure. The move could strengthen its competitive position against Cisco and Hewlett Packard Enterprise while supporting demand for its AI systems. DELL Expands AI Security Capabilities
• Positive Sentiment: Coverage ahead of earnings points to triple-digit year-over-year EPS growth, while comparisons with AMD emphasize Dell’s end-to-end infrastructure and record AI-server backlog. What You Need to Know Ahead of Dell Technologies’ Earnings Release
• Neutral Sentiment: Investors are awaiting Dell’s quarterly report, making the upcoming results and guidance an important near-term catalyst after the company’s strong recent earnings and revenue growth.
• Negative Sentiment: One analysis argues that rapidly growing AI-server sales may be masking deteriorating cash flow and negative shareholders’ equity, raising concerns that Dell’s rally has outpaced its underlying fundamentals. The Next AI Stock to Break Out May Not Be on Most Investors’ Radar
• Negative Sentiment: Options-market analysis points to potential consolidation near $480, while an insider sale of 2,022 shares adds a modest cautionary signal. Dell Max Pain Points to a Price of $480

Analysts Set New Price Targets

DELL has been the topic of several analyst reports. Sanford C. Bernstein upped their price target on Dell Technologies from $500.00 to $650.00 and gave the company an “outperform” rating in a research report on Wednesday, September 2nd. JPMorgan Chase & Co. upped their target price on shares of Dell Technologies from $565.00 to $635.00 and gave the stock an “overweight” rating in a research note on Wednesday, September 2nd. Royal Bank Of Canada began coverage on Dell Technologies in a research report on Thursday, September 10th. They set an “outperform” rating and a $640.00 price objective on the stock. KeyCorp restated a “sector weight” rating on shares of Dell Technologies in a research report on Wednesday, September 2nd. Finally, Wells Fargo & Company boosted their target price on Dell Technologies from $505.00 to $545.00 and gave the company an “overweight” rating in a research report on Friday, August 14th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $569.96.

Dell Technologies Trading Down 3.8%

The company has a market cap of $301.88 billion, a PE ratio of 27.57, a price-to-earnings-growth ratio of 0.47 and a beta of 1.37. The business has a fifty day simple moving average of $513.18 and a two-hundred day simple moving average of $327.00.

Dell Technologies (NYSE:DELL) last posted its quarterly 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 business had revenue of $46.97 billion during the quarter, compared to analysts’ expectations of $44.89 billion. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The business’s revenue for the quarter was up 57.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $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. Equities analysts expect that Dell Technologies Inc. will post 25.13 EPS for the current year.

Dell Technologies Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Tuesday, October 20th will be paid a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, October 20th. Dell Technologies’s dividend payout ratio (DPR) is 14.63%.

Insider Transactions at Dell Technologies

In related news, Director Spv-2 L.P. Sl sold 83,006 shares of Dell Technologies stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $517.34, for a total transaction of $42,942,324.04. Following the completion of the transaction, the director directly owned 73,185 shares in the company, valued at $37,861,527.90. The trade was a 53.14% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Silver Lake Partners Iv, L.P. sold 91,191 shares of the stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $517.34, for a total value of $47,176,751.94. Following the sale, the director directly owned 64,209 shares in the company, valued at approximately $33,217,884.06. The trade was a 58.68% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,819,650 shares of company stock valued at $991,183,596. 41.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Dell Technologies

Hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE raised its position in shares of 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 worth $2,362,624,000 after buying an additional 1,011,101 shares during the period. Wellington Management Group LLP lifted its stake in shares of Dell Technologies by 140.1% in the 2nd quarter. Wellington Management Group LLP now owns 2,526,987 shares of the technology company’s stock valued at $1,090,294,000 after purchasing an additional 1,474,347 shares in the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Dell Technologies by 3.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 961,675 shares of the technology company’s stock valued at $157,869,000 after purchasing an additional 27,668 shares in the last quarter. Swiss National Bank grew its holdings in shares of Dell Technologies by 4.7% during the 1st quarter. Swiss National Bank now owns 931,008 shares of the technology company’s stock worth $152,806,000 after purchasing an additional 41,700 shares during the period. Finally, Amundi increased its position in Dell Technologies by 5.8% during the 1st quarter. Amundi now owns 845,709 shares of the technology company’s stock worth $138,806,000 after purchasing an additional 46,240 shares in the last quarter. 76.37% of the stock is owned by institutional investors and hedge funds.

Dell Technologies Company Profile

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.