Dell Technologies (NYSE:DELL) Stock Falls 7.2% – Should You Sell?

Dell Technologies Inc. (NYSE:DELL) was down 7.2% on Friday. The company traded as low as $330.42 and last traded at $344.3230. Approximately 9,541,730 shares were traded during trading, an increase of 16% from the average session volume of 8,220,732 shares. The stock had previously closed at $371.17.

Top Dell Technologies Stories

Investors following DELL have been watching these stories:

• Positive Sentiment: Dell’s AI-server growth, record orders and substantial backlog could support continued expansion; one analysis argues a shift in who buys AI hardware may create an opportunity for the stock. Article: AI stock could be a 2027 winner
• Neutral Sentiment: Coverage of Dell’s planned Austin campus renovation reports a $12 million project; the articles provide no clear indication of a material near-term effect on earnings. Article: Austin campus renovation
• Negative Sentiment: The sharp sector pullback suggests the market is reassessing AI-hardware valuations and potential exposure to Nvidia-related risks, overshadowing Dell’s demand outlook in the short term. Article: Dell’s exposure to Nvidia

Analyst Ratings Changes

A number of equities analysts have issued reports on DELL shares. JPMorgan Chase & Co. upped their target price on Dell Technologies from $565.00 to $635.00 and gave the company an “overweight” rating in a research report on Wednesday, September 2nd. Fox Advisors raised shares of Dell Technologies from an “equal weight” rating to an “overweight” rating and set a $625.00 price target for the company in a research report on Wednesday, September 2nd. TD Cowen lifted their price target on shares of Dell Technologies from $500.00 to $550.00 and gave the stock a “hold” rating in a research note on Tuesday, September 29th. Susquehanna restated a “positive” rating on shares of Dell Technologies in a research note on Tuesday, September 29th. Finally, Deutsche Bank initiated coverage on shares of Dell Technologies in a report on Thursday, September 3rd. They issued a “hold” rating and a $480.00 price target on the stock. One investment 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 stock. According to data from MarketBeat, Dell Technologies currently has a consensus rating of “Moderate Buy” and an average target price of $569.96.

Dell Technologies Stock Performance

The firm has a market capitalization of $218.92 billion, a P/E ratio of 19.98, a P/E/G ratio of 0.38 and a beta of 1.45. The stock has a fifty day moving average price of $493.45 and a two-hundred day moving average price of $342.40.

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

Dell Technologies Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th were issued a $0.63 dividend. The ex-dividend date of this dividend was Tuesday, October 20th. This represents a $2.52 dividend on an annualized basis and a yield of 0.7%. Dell Technologies’s dividend payout ratio (DPR) is currently 14.63%.

Insider Buying and Selling

In other news, Director Silver Lake Partners Iv, L.P. sold 91,191 shares of the 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 $47,176,751.94. Following the sale, the director directly owned 64,209 shares in the company, valued at approximately $33,217,884.06. This represents a 58.68% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Spv-2 L.P. Sl sold 83,006 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The stock was 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 directly owned 73,185 shares in the company, valued at approximately $37,861,527.90. This trade represents a 53.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,819,650 shares of company stock valued at $991,183,596. 41.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in DELL. Entropy Technologies LP increased its holdings in shares of Dell Technologies by 15.6% in the 3rd quarter. Entropy Technologies LP now owns 17,697 shares of the technology company’s stock worth $9,520,000 after acquiring an additional 2,385 shares during the period. Jump Financial LLC boosted its stake in Dell Technologies by 1,667.3% during the 3rd quarter. Jump Financial LLC now owns 88,385 shares of the technology company’s stock valued at $47,547,000 after purchasing an additional 83,384 shares during the period. Flputnam Investment Management Co. boosted its stake in Dell Technologies by 6.1% during the 3rd quarter. Flputnam Investment Management Co. now owns 208,971 shares of the technology company’s stock valued at $112,416,000 after purchasing an additional 11,933 shares during the period. Integrity Financial Corp WA grew its position in Dell Technologies by 9.2% in the 3rd quarter. Integrity Financial Corp WA now owns 533 shares of the technology company’s stock worth $287,000 after purchasing an additional 45 shares during the last quarter. Finally, FORA Capital LLC grew its position in Dell Technologies by 110.7% in the 3rd quarter. FORA Capital LLC now owns 77,056 shares of the technology company’s stock worth $41,470,000 after purchasing an additional 40,484 shares during the last quarter. 76.37% of the stock is currently owned by institutional investors.

About Dell Technologies

Dell Technologies is a global technology company that develops, sells and supports computers and related infrastructure. Its products include personal computers, workstations, monitors and peripherals, as well as servers, storage systems and networking equipment for businesses and other organizations. The company also provides technology services and solutions, including support, consulting and offerings related to cloud computing, data management and cybersecurity. Dell serves consumers, businesses, governments and other institutions in markets around the world.