Dell Technologies (NYSE:DELL) Shares Down 9.9% – Here’s Why

Dell Technologies Inc. (NYSE:DELL) dropped 9.9% during trading on Wednesday . The stock traded as low as $391.12 and last traded at $412.17. 12,837,143 shares changed hands during trading, an increase of 48% from the average session volume of 8,677,491 shares. The stock had previously closed at $457.54.

Dell Technologies News Roundup

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

• Negative Sentiment: AI infrastructure and hardware stocks sold off broadly, with Dell hit as traders took profits and worried that demand expectations for AI servers may be peaking. Investors Think Memory Maybe Peaking, says Top Evercore Analyst as DELL Stock Tanks 14%
• Negative Sentiment: Multiple reports pointed to concerns about AI infrastructure overcapacity, suggesting the market is questioning how long the current AI spending cycle can sustain premium valuations for Dell. Dell (DELL) Stock Plunges 13% Amid AI Infrastructure Overcapacity Concerns
• Negative Sentiment: Recent insider selling by Silver Lake-related directors added to bearish sentiment and may have reinforced concerns that some large holders are locking in gains after the run-up. SEC filing for Silver Lake Partners Iv, L.P. sale
• Neutral Sentiment: Despite the selloff, Dell’s recent quarterly results were still very strong, with revenue and EPS far above estimates, and analysts continue to cite a powerful AI server growth story. Dell Technologies Delivers First Quarter Fiscal 2027 Financial Results

Analyst Ratings Changes

Several analysts recently issued reports on the stock. William Blair initiated coverage on shares of Dell Technologies in a research report on Monday, June 1st. They issued a “neutral” rating for the company. Truist Financial raised their price objective on shares of Dell Technologies from $170.00 to $360.00 and gave the company a “hold” rating in a research note on Friday, May 29th. Raymond James Financial cut shares of Dell Technologies from an “outperform” rating to a “market perform” rating in a report on Friday, May 29th. Citic Securities upped their target price on shares of Dell Technologies from $160.00 to $505.00 and gave the stock a “buy” rating in a report on Monday, June 1st. Finally, Mizuho raised their price target on shares of Dell Technologies from $435.00 to $500.00 and gave the company an “outperform” rating in a research report on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $492.76.

Dell Technologies Trading Down 9.9%

The business has a 50-day moving average of $363.26 and a 200 day moving average of $223.64. The firm has a market capitalization of $267.13 billion, a PE ratio of 32.74, a price-to-earnings-growth ratio of 0.91 and a beta of 1.31.

Dell Technologies (NYSE:DELL) last posted its quarterly earnings data on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $43.84 billion for the quarter, compared to the consensus estimate of $35.74 billion. During the same period in the previous year, the firm earned $1.55 EPS. The business’s revenue for the quarter 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, sell-side analysts expect that Dell Technologies Inc. will post 17.74 EPS for the current fiscal year.

Dell Technologies Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Tuesday, July 21st will be issued a dividend of $0.63 per share. The ex-dividend date is Tuesday, July 21st. This represents a $2.52 annualized dividend and a yield of 0.6%. Dell Technologies’s payout ratio is 20.02%.

Insider Activity

In other news, Director Silver Lake Partners V. De (Aiv sold 34,869 shares of the business’s stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total value of $15,814,486.26. Following the transaction, the director owned 43,961 shares in the company, valued at $19,938,071.94. The trade was a 44.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Lake Group L.L.C. Silver sold 16,679 shares of the company’s stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $396.37, for a total value of $6,611,055.23. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 3,816,758 shares of company stock valued at $1,516,412,103. 41.50% of the stock is currently owned by company insiders.

Institutional Trading of Dell Technologies

Hedge funds have recently bought and sold shares of the business. Commonwealth Retirement Investments LLC purchased a new stake in shares of Dell Technologies during the 4th quarter valued at $25,000. Rossby Financial LCC boosted its holdings 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 worth $26,000 after buying an additional 184 shares during the last quarter. Navalign LLC bought a new position in Dell Technologies during the fourth quarter valued at about $29,000. Kemnay Advisory Services Inc. purchased a new stake in Dell Technologies during the fourth quarter worth about $29,000. Finally, WealthCollab LLC raised its position in Dell Technologies by 82.0% in the second quarter. WealthCollab LLC now owns 253 shares of the technology company’s stock worth $31,000 after acquiring an additional 114 shares during the period. 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.