Dell Technologies (NYSE:DELL) Stock Falls 10.9% – Here’s Why

Dell Technologies Inc. (NYSE:DELL)’s share price fell 10.9% during trading on Friday. The stock traded as low as $413.00 and last traded at $423.63. 10,452,120 shares changed hands during mid-day trading, an increase of 27% from the average session volume of 8,202,253 shares. The stock had previously closed at $475.51.

Dell Technologies News Roundup

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

• Positive Sentiment: Dell’s AI infrastructure business remains a key long-term support. Recent coverage highlighted accelerating storage growth, a reported $95 billion backlog and rising earnings estimates, while expanded AI security and cyber-resilience capabilities could strengthen its position against Cisco and Hewlett Packard Enterprise. Everpure vs. Dell: Which Data Storage Stock Is the Better Buy Now? DELL Expands AI Security Capabilities
• Neutral Sentiment: One report characterized Dell as a founder-led technology company with potential for continued innovation and global growth, but it does not introduce a new catalyst for the current session. Founder-Led Giants Redefining Technology and Global Market Growth
• Neutral Sentiment: A filing-related report said an account associated with Donald Trump sold as much as $1 million of Dell stock, despite his public comments encouraging purchases. The transaction may attract attention but is small relative to Dell’s market value and does not change the company’s fundamentals. Trump Filing Reveals Dell Stock Sale
• Negative Sentiment: Intel warned that memory shortages are constraining PC demand and that weakness could persist, hurting computer and server manufacturers. Dell fell alongside HP, Hewlett Packard Enterprise and Super Micro as investors priced in slower hardware demand and potential supply-cost pressure. Dell Sinks as Intel Warning Hits Hardware Stocks
• Negative Sentiment: Intel’s weak fourth-quarter outlook, margin pressure and roughly 25% share-price reset reinforced concerns about a prolonged PC downturn. The read-through is negative for Dell’s traditional PC business, even though AI servers may continue to grow. Silicon Shock: Intel’s Valuation Reset
• Negative Sentiment: Investors are also questioning whether Dell’s rally has outpaced its fundamentals, citing sharply weaker cash flow and negative shareholders’ equity. Those concerns increase sensitivity to any slowdown in AI or broader hardware demand. The Next AI Stock to Break Out May Not Be on Most Investors’ Radar

Analyst Ratings Changes

Several research firms have weighed in on DELL. JPMorgan Chase & Co. raised their target price on shares of Dell Technologies from $565.00 to $635.00 and gave the company an “overweight” rating in a report on Wednesday, September 2nd. Sanford C. Bernstein lifted their target price on shares of Dell Technologies from $500.00 to $650.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 2nd. Royal Bank Of Canada started coverage on shares of Dell Technologies in a report on Thursday, September 10th. They issued an “outperform” rating and a $640.00 price target on the stock. KeyCorp reiterated a “sector weight” rating on shares of Dell Technologies in a research report on Wednesday, September 2nd. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Dell Technologies in a research note on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $569.96.

Dell Technologies Price Performance

The company has a 50-day moving average price of $513.74 and a 200-day moving average price of $330.29. The firm has a market capitalization of $269.35 billion, a PE ratio of 24.59, a P/E/G ratio of 0.44 and a beta of 1.37.

Dell Technologies (NYSE:DELL) last posted its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter was up 57.7% compared to the same quarter last year. During the same quarter last year, the company earned $1.70 earnings per share. 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. On average, research analysts predict that Dell Technologies Inc. will post 25.13 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th were paid a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend was Tuesday, October 20th. Dell Technologies’s dividend payout ratio (DPR) is currently 14.63%.

Insider Activity at Dell Technologies

In related news, Director Egon Durban sold 1,850 shares of the company’s stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $548.40, for a total transaction of $1,014,540.00. Following the transaction, the director owned 1,405,236 shares of the company’s stock, valued at approximately $770,631,422.40. This represents a 0.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Lynn Vojvodich Radakovich sold 2,022 shares of the firm’s stock in a transaction that occurred on Thursday, October 22nd. The stock was sold at an average price of $460.00, for a total transaction of $930,120.00. Following the sale, the director owned 25,686 shares in the company, valued at approximately $11,815,560. This trade represents a 7.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,819,650 shares of company stock worth $991,183,596 over the last three months. Company insiders own 41.50% of the company’s stock.

Institutional Trading of Dell Technologies

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Plato Investment Management Ltd acquired a new position in shares of Dell Technologies during the second quarter worth about $5,913,000. Kercheville Advisors LLC raised its position in shares of Dell Technologies by 13.6% in the 3rd quarter. Kercheville Advisors LLC now owns 18,800 shares of the technology company’s stock valued at $10,113,000 after purchasing an additional 2,250 shares in the last quarter. Gabelli Funds LLC raised its position in shares of Dell Technologies by 49.0% in the 1st quarter. Gabelli Funds LLC now owns 46,094 shares of the technology company’s stock valued at $7,565,000 after purchasing an additional 15,150 shares in the last quarter. Segall Bryant & Hamill LLC purchased a new position in shares of Dell Technologies during the 1st quarter valued at approximately $5,930,000. Finally, Jackson Square Capital LLC boosted its stake in shares of Dell Technologies by 15.1% during the 3rd quarter. Jackson Square Capital LLC now owns 17,115 shares of the technology company’s stock valued at $9,207,000 after buying an additional 2,243 shares during the last quarter. 76.37% of the stock is owned by hedge funds and other institutional investors.

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.