Dell Technologies (NYSE:DELL) Trading Down 3.8% – Here’s What Happened

Shares of Dell Technologies Inc. (NYSE:DELL) fell 3.8% during trading on Tuesday . The stock traded as low as $431.01 and last traded at $440.54. 4,746,302 shares changed hands during mid-day trading, a decline of 43% from the average session volume of 8,330,674 shares. The stock had previously closed at $457.88.

More Dell Technologies News

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

• Positive Sentiment: AI server demand remains the main growth catalyst. Dell’s AI server surge, record backlog and ongoing enterprise server-refresh cycle are cited as drivers of strong future growth. The broader AI-server group also advanced, reinforcing investor interest in Dell’s infrastructure exposure. DELL is Overvalued at 21.92X P/E: Should You Still Buy the Stock?
• Positive Sentiment: Expanded distribution could broaden Dell’s addressable customer base. D&H Distributing is now fully authorized to sell Dell’s complete storage and server portfolio across the United States and Canada, giving more resellers and solution providers access to Dell’s data-center products. What Does Dell Technologies Full North America Distribution Reach Mean?
• Positive Sentiment: Analysts continue to identify Dell as an AI-infrastructure beneficiary. Dell is included among companies positioned to benefit from data-center construction and the expansion of server, memory and systems-integration demand. These Stocks Could Be Ready for Their Next Big Move
• Neutral Sentiment: Valuation views are mixed. One analysis argues that Dell may still be undervalued based on discounted cash flow and earnings measures, while another highlights a premium P/E multiple and questions whether the stock can sustain its gains. This conflict may encourage profit-taking even as fundamentals remain strong. Dell Stock May Be Undervalued on a Huge Five-Year Run
• Negative Sentiment: High expectations create downside risk. Dell has already delivered exceptional long-term returns, so investors may be demanding continued acceleration in AI-server revenue and margins. Any concern that the current valuation has moved ahead of near-term earnings could pressure the shares despite the favorable backlog and demand outlook. DELL is Overvalued at 21.92X P/E: Should You Still Buy the Stock?

Wall Street Analysts Forecast Growth

A number of research firms have commented on DELL. UBS Group set a $700.00 price objective on shares of Dell Technologies in a research note on Friday, May 29th. William Blair initiated coverage on shares of Dell Technologies in a research note on Monday, June 1st. They set a “neutral” rating for the company. HSBC raised Dell Technologies to a “buy” rating in a report on Friday, May 29th. Truist Financial upped their price objective on Dell Technologies from $170.00 to $360.00 and gave the company a “hold” rating in a research note on Friday, May 29th. Finally, Jefferies Financial Group cut Dell Technologies to a “hold” rating in a research report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $492.43.

Dell Technologies Trading Down 3.8%

The company has a market cap of $285.52 billion, a price-to-earnings ratio of 34.99, a PEG ratio of 0.97 and a beta of 1.33. The company’s 50 day moving average price is $417.05 and its 200 day moving average price is $263.68.

Dell Technologies (NYSE:DELL) last issued its earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $43.84 billion for the quarter, compared to the consensus estimate of $35.74 billion. During the same quarter in the previous year, the firm earned $1.55 earnings per share. The business’s quarterly revenue 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. Sell-side analysts predict that Dell Technologies Inc. will post 17.77 earnings per share for the current year.

Dell Technologies Announces Dividend

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

Insider Activity at Dell Technologies

In related news, Director Silver Lake Partners Iv, L.P. sold 189,805 shares of Dell Technologies stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $457.99, for a total value of $86,928,791.95. Following the sale, the director directly owned 24,287 shares in the company, valued at $11,123,203.13. The trade was a 88.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Spv-2 L.P. Sl sold 175,901 shares of the company’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $457.99, for a total value of $80,560,898.99. Following the transaction, the director directly owned 36,659 shares in the company, valued at $16,789,455.41. This represents a 82.75% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 3,434,758 shares of company stock worth $1,448,870,683 in the last quarter. 41.50% of the stock is currently owned by insiders.

Institutional Trading of Dell Technologies

Several hedge funds and other institutional investors have recently made changes to their positions in DELL. Byrne Asset Management LLC acquired a new position in Dell Technologies during the second quarter worth about $38,000. Atwood & Palmer Inc. increased its holdings in Dell Technologies by 860.0% in the second quarter. Atwood & Palmer Inc. now owns 96 shares of the technology company’s stock valued at $41,000 after buying an additional 86 shares in the last quarter. Allied Private Wealth LLC acquired a new stake in shares of Dell Technologies during the 2nd quarter valued at approximately $63,000. Elevation Wealth Partners LLC boosted its stake in shares of Dell Technologies by 5,900.0% during the 2nd quarter. Elevation Wealth Partners LLC now owns 180 shares of the technology company’s stock worth $78,000 after acquiring an additional 177 shares in the last quarter. Finally, Commonwealth Retirement Investments LLC purchased a new position in Dell Technologies in the 4th quarter valued at approximately $25,000. Institutional investors and hedge funds own 76.37% of the company’s stock.

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.