Dell Technologies (NYSE:DELL) Shares Down 7.3% – Time to Sell?

Dell Technologies Inc. (NYSE:DELL)’s share price dropped 7.3% on Tuesday . The stock traded as low as $421.89 and last traded at $422.54. 13,717,046 shares changed hands during trading, an increase of 69% from the average session volume of 8,094,242 shares. The stock had previously closed at $456.01.

Dell Technologies News Roundup

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

• Positive Sentiment: Record earnings and guidance: Dell reported revenue of $46.97 billion, up nearly 58% year over year, and adjusted EPS of $7.04, comfortably exceeding estimates of $44.89 billion and $4.91. Management raised fiscal 2027 revenue guidance to $192 billion and EPS guidance to $25.50, while forecasting third-quarter revenue of $49 billion and EPS of $6.50. Dell again lifts forecasts as AI demand powers record results
• Positive Sentiment: AI demand is driving the upside: Infrastructure Solutions Group revenue rose 89% to $31.8 billion, including $16.4 billion from AI-optimized servers, which doubled year over year. Record quarterly AI orders of $60.9 billion helped push Dell’s AI-related backlog to approximately $95 billion, providing substantial revenue visibility. Dell AI server momentum accelerates
• Positive Sentiment: Analyst support is strengthening: JPMorgan raised its price target from $565 to $635 and maintained an Overweight rating. Other firms, including Morgan Stanley, Goldman Sachs and Citi, also increased targets, while institutional buying remains active. Wall Street analysts respond to Dell’s AI demand
• Neutral Sentiment: Dell introduced the Dell 14S laptop for students and value-focused consumers, expanding beyond its premium XPS line. The product could broaden consumer reach, but its near-term financial impact is likely modest. Dell introduces the Dell 14S
• Negative Sentiment: Execution risks remain: Dell acknowledged shortages of AI components that could constrain shipments. Investors are also monitoring margin sustainability as the company scales lower-margin server revenue, while the stock’s rapid appreciation has left valuation and expectations elevated.
• Negative Sentiment: Reported insider activity has been heavily weighted toward selling, including transactions by senior executives and investment entities. This does not negate the earnings strength, but it may add caution after the stock’s powerful rally.

Analysts Set New Price Targets

DELL has been the topic of a number of research analyst reports. Argus raised their price target on Dell Technologies from $200.00 to $460.00 and gave the company a “buy” rating in a report on Friday, May 29th. CLSA upgraded Dell Technologies to an “outperform” rating in a report on Friday, May 29th. JPMorgan Chase & Co. lifted their price target on Dell Technologies from $565.00 to $635.00 and gave the company an “overweight” rating in a report on Wednesday. Susquehanna set a $289.00 price target on shares of Dell Technologies and gave the stock a “neutral” rating in a research report on Friday, May 29th. Finally, Daiwa Securities Group raised their price objective on shares of Dell Technologies from $170.00 to $465.00 and gave the company an “outperform” rating in a research report on Tuesday, June 2nd. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $555.46.

Dell Technologies Stock Up 4.2%

The stock has a market cap of $332.48 billion, a P/E ratio of 29.77, a PEG ratio of 0.88 and a beta of 1.34. The stock has a fifty day simple moving average of $434.61 and a 200-day simple moving average of $304.63.

Dell Technologies (NYSE:DELL) last released its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, topping 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 net margin of 7.53% and a negative return on equity of 529.54%. Dell Technologies’s quarterly revenue was up 57.7% compared to the same quarter last year. During the same quarter last year, the firm earned $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. Sell-side analysts anticipate that Dell Technologies Inc. will post 18.32 earnings per share for the current year.

Dell Technologies Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Tuesday, October 20th will be given a $0.63 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.5%. Dell Technologies’s dividend payout ratio is currently 14.63%.

Insiders Place Their Bets

In other Dell Technologies news, Director Silver Lake Partners V. De (Aiv sold 34,869 shares of the firm’s stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $453.54, for a total transaction of $15,814,486.26. Following the sale, the director directly owned 43,961 shares in the company, valued at approximately $19,938,071.94. This trade represents a 44.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Lynn Vojvodich Radakovich sold 2,022 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $438.21, for a total transaction of $886,060.62. Following the completion of the transaction, the director owned 25,267 shares of the company’s stock, valued at $11,072,252.07. This trade represents a 7.41% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,738,596 shares of company stock worth $704,346,083. 41.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dell Technologies

Several institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC increased its stake in Dell Technologies by 42.7% in the 4th quarter. Brighton Jones LLC now owns 3,011 shares of the technology company’s stock valued at $347,000 after buying an additional 901 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Dell Technologies during the second quarter valued at approximately $328,000. Marshall Wace LLP bought a new position in Dell Technologies in the second quarter valued at approximately $809,000. Gamco Investors INC. ET AL increased its position in shares of Dell Technologies by 30.2% during the 2nd quarter. Gamco Investors INC. ET AL now owns 6,680 shares of the technology company’s stock worth $819,000 after purchasing an additional 1,550 shares during the last quarter. Finally, NewEdge Advisors LLC raised its stake in shares of Dell Technologies by 147.2% during the 2nd quarter. NewEdge Advisors LLC now owns 58,009 shares of the technology company’s stock worth $7,112,000 after purchasing an additional 34,538 shares in the last quarter. 76.37% of the stock is 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.