Dell Technologies (NYSE:DELL) Shares Up 3.6% – Time to Buy?

Dell Technologies Inc. (NYSE:DELL)’s stock price shot up 3.6% on Wednesday . The stock traded as high as $576.75 and last traded at $563.31. Approximately 12,929,283 shares traded hands during mid-day trading, an increase of 54% from the average session volume of 8,418,368 shares. The stock had previously closed at $543.51.

Key Stories Impacting Dell Technologies

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

• Positive Sentiment: Goldman Sachs raised its outlook for the global server market, forecasting it could reach $1.5 trillion by 2030, driven largely by artificial intelligence infrastructure. The estimate strengthens the long-term market opportunity for Dell’s servers, networking, and storage products. Why Dell Technologies stock is gaining
• Positive Sentiment: Investors continue to highlight Dell’s substantial AI-server backlog and Nvidia-related infrastructure demand. Dell recently reported record AI-optimized server revenue of $16.4 billion and raised its full-year AI-server revenue target to $74 billion, supporting expectations for future growth. Dell’s AI server backlog
• Positive Sentiment: Dell’s recent quarterly results remain a key fundamental catalyst: revenue rose 57.7% year over year to approximately $47 billion, while earnings exceeded consensus estimates. Management has also emphasized accelerating infrastructure demand and potentially tight supply conditions into next year.
• Positive Sentiment: Axelera AI is collaborating with Dell on the Europa AI Processing Unit architecture, adding another inference-computing option for Dell data-center customers and supporting the company’s broader AI hardware ecosystem. Dell and Axelera AI collaboration
• Positive Sentiment: Dell is scheduled to join the S&P 100 before the market opens on September 21. The addition could generate incremental buying from index-tracking funds. Bullish analyst views, including RBC’s $640 price target, have added to investor confidence.
• Neutral Sentiment: Dell completed a $5 billion senior-notes offering. The proceeds should provide liquidity and help refinance debt, though the financing highlights the capital requirements associated with expanding AI infrastructure. Dell senior-notes offering
• Negative Sentiment: Silver Lake-affiliated entities and Dell directors have disclosed sizable stock sales after the sharp rally. The transactions create a potential supply overhang and may encourage profit-taking, even though some affiliated holders retain significant positions.
• Negative Sentiment: At the current valuation, investors are pricing in substantial AI-driven growth. Any slowdown in customer capital spending, easing supply constraints, or failure to convert the backlog into revenue could increase volatility.

Analyst Upgrades and Downgrades

DELL has been the subject of a number of research reports. Wolfe Research cut shares of Dell Technologies from a “peer perform” rating to a “peer perform” rating in a report on Friday, May 29th. Citigroup upped their price objective on shares of Dell Technologies from $515.00 to $600.00 and gave the company a “buy” rating in a report on Wednesday, September 2nd. Raymond James Financial raised their target price on Dell Technologies from $500.00 to $617.00 and gave the company an “outperform” rating in a research note on Wednesday, September 2nd. Citic Securities boosted their target price on Dell Technologies from $160.00 to $505.00 and gave the company a “buy” rating in a research report on Monday, June 1st. Finally, UBS Group reaffirmed an “outperform” rating on shares of Dell Technologies in a research note on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $560.24.

Dell Technologies Price Performance

The company has a market cap of $365.09 billion, a P/E ratio of 32.69, a price-to-earnings-growth ratio of 0.55 and a beta of 1.34. The stock has a fifty day moving average price of $456.43 and a two-hundred day moving average price of $330.78.

Dell Technologies (NYSE:DELL) last released its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 EPS for the quarter, beating analysts’ consensus estimates of $4.91 by $2.13. Dell Technologies had a negative return on equity of 578.85% and a net margin of 7.53%.The business had revenue of $46.97 billion during the quarter, compared to analyst estimates of $44.89 billion. During the same period in the prior year, the firm posted $1.70 EPS. Dell Technologies’s quarterly revenue was up 57.7% compared to the same quarter last year. 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. Equities analysts predict that Dell Technologies Inc. will post 25.14 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Tuesday, October 20th will be issued a dividend of $0.63 per share. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 annualized dividend and a yield of 0.4%. Dell Technologies’s payout ratio is 14.63%.

Insiders Place Their Bets

In related news, Director Silver Lake Partners V. De (Aiv sold 14,242 shares of Dell Technologies stock in a transaction on Monday, September 14th. The stock was sold at an average price of $534.05, for a total transaction of $7,605,940.10. Following the sale, the director directly owned 24,237 shares in the company, valued at approximately $12,943,769.85. This trade represents a 37.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Silver Lake Partners Iv, L.P. sold 8,100 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $538.90, for a total value of $4,365,090.00. Following the completion of the transaction, the director directly owned 1,395,650 shares in the company, valued at approximately $752,115,785. This represents a 0.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,681,793 shares of company stock valued at $834,887,936. Corporate insiders own 41.50% of the company’s stock.

Hedge Funds Weigh In On Dell Technologies

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE boosted its stake in Dell Technologies by 7.6% in the first quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company’s stock valued at $2,362,624,000 after acquiring an additional 1,011,101 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Dell Technologies by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 7,478,732 shares of the technology company’s stock worth $939,808,000 after purchasing an additional 108,011 shares during the last quarter. Deutsche Bank AG raised its holdings in shares of Dell Technologies by 24.6% in the 4th quarter. Deutsche Bank AG now owns 5,517,070 shares of the technology company’s stock worth $694,489,000 after purchasing an additional 1,090,336 shares during the period. Norges Bank purchased a new position in Dell Technologies in the fourth quarter valued at approximately $607,349,000. Finally, Wellington Management Group LLP lifted its stake in Dell Technologies by 140.1% in the second quarter. Wellington Management Group LLP now owns 2,526,987 shares of the technology company’s stock valued at $1,090,294,000 after purchasing an additional 1,474,347 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, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.