Dell Technologies (NYSE:DELL) Trading Down 7% – Here’s Why

Dell Technologies Inc. (NYSE:DELL) shares were down 7% on Tuesday . The company traded as low as $426.15 and last traded at $433.7150. Approximately 20,497,688 shares traded hands during mid-day trading, an increase of 116% from the average daily volume of 9,504,272 shares. The stock had previously closed at $466.4410.

Dell Technologies News Summary

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

• Positive Sentiment: Dell’s latest quarter showed a major earnings beat, with strong revenue and profits driven by surging demand for AI servers and infrastructure, reinforcing the company’s role as a key AI hardware supplier. Article Title
• Positive Sentiment: The company was upgraded to Zacks Rank #1 (Strong Buy), suggesting improving earnings expectations and near-term upside sentiment from analysts. Article Title
• Positive Sentiment: Investors are also reacting to commentary that Dell is becoming an AI infrastructure powerhouse, with massive AI orders and a large AI-server outlook supporting the bull case. Article Title
• Positive Sentiment: A reported $10 billion Department of Defense software and cloud infrastructure contract adds another catalyst, expanding Dell’s credibility in government and enterprise AI/cloud spending. Article Title
• Neutral Sentiment: Some articles note the stock has already rallied sharply and may be getting stretched, which could temper enthusiasm if investors start worrying about valuation. Article Title
• Negative Sentiment: A few pieces warn that Dell’s rapid run-up leaves little room for disappointment, with at least one strategist arguing the shares look stretched near recent highs. Article Title

Analyst Ratings Changes

DELL has been the topic of a number of analyst reports. Wall Street Zen upgraded Dell Technologies from a “buy” rating to a “strong-buy” rating in a research report on Saturday, May 30th. Zacks Research raised Dell Technologies from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 21st. Loop Capital lifted their price target on Dell Technologies from $150.00 to $550.00 and gave the stock a “buy” rating in a report on Friday, May 29th. The Goldman Sachs Group upped their price objective on shares of Dell Technologies from $230.00 to $500.00 and gave the company a “buy” rating in a report on Monday. Finally, Melius Research set a $565.00 price objective on shares of Dell Technologies in a research report on Friday, May 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $475.76.

Dell Technologies Stock Down 3.3%

The stock has a 50-day simple moving average of $233.65 and a 200 day simple moving average of $165.89. The company has a market cap of $271.88 billion, a PE ratio of 33.44, a P/E/G ratio of 1.28 and a beta of 1.30.

Dell Technologies (NYSE:DELL) last issued its quarterly earnings data on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) 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 firm had revenue of $43.84 billion for the quarter, compared to analyst estimates of $35.74 billion. During the same period in the previous year, the firm earned $1.55 EPS. Dell Technologies’s revenue was up 87.5% on a year-over-year basis. 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. As a group, research analysts anticipate that Dell Technologies Inc. will post 12.93 earnings per share for the current fiscal year.

Insider Activity at Dell Technologies

In other news, Director Silver Lake Partners Iv, L.P. sold 189,805 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $457.99, for a total transaction of $86,928,791.95. Following the completion of the transaction, the director directly owned 24,287 shares in the company, valued at $11,123,203.13. This trade represents a 88.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Spv-2 L.P. Sl sold 175,901 shares of the business’s stock in a transaction on Monday, June 1st. The shares were sold at an average price of $457.99, for a total value of $80,560,898.99. Following the completion of the sale, the director owned 36,659 shares in the company, valued at $16,789,455.41. This represents a 82.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 3,205,319 shares of company stock valued at $719,068,700 over the last ninety days. 41.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Providence Capital Advisors LLC purchased a new stake in shares of Dell Technologies during the 3rd quarter worth approximately $7,060,000. Campbell Capital Management Inc. raised its stake in Dell Technologies by 34.0% during the 4th quarter. Campbell Capital Management Inc. now owns 80,189 shares of the technology company’s stock worth $10,094,000 after acquiring an additional 20,362 shares in the last quarter. ProShare Advisors LLC lifted its position in Dell Technologies by 10.5% in the fourth quarter. ProShare Advisors LLC now owns 80,686 shares of the technology company’s stock valued at $10,157,000 after acquiring an additional 7,642 shares during the last quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund purchased a new stake in Dell Technologies in the fourth quarter valued at $23,332,000. Finally, Prospera Financial Services Inc boosted its stake in Dell Technologies by 54.3% in the third quarter. Prospera Financial Services Inc now owns 41,492 shares of the technology company’s stock valued at $5,886,000 after acquiring an additional 14,604 shares in the last quarter. 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.