Dell Technologies (NYSE:DELL) Stock Jumps 3.7% – Here’s Why

Dell Technologies Inc. (NYSE:DELL) shares traded up 3.7% on Friday. The company traded as high as $568.00 and last traded at $562.0330. 5,364,072 shares traded hands during trading, a decline of 36% from the average daily volume of 8,377,752 shares. The stock had previously closed at $541.74.

Dell Technologies News Summary

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

• Positive Sentiment: Dell is joining Japan’s JERA and RHAELM in a planned AI data-center development project expected to exceed $15 billion. The initiative, targeted for Chiba and designed to improve access to electricity for AI computing, strengthens Dell’s position in the expanding global AI infrastructure market. JERA teams up with Dell and RHAELM on AI infrastructure development in Japan
• Positive Sentiment: Investor enthusiasm remains anchored by Dell’s recent earnings update, which included $60.9 billion in AI server orders, $16.4 billion in AI server revenue and a $95 billion ending AI server backlog. Management also raised fiscal 2027 revenue guidance to approximately $192 billion, reinforcing expectations for substantial AI-driven growth. Dell gains as AI server momentum and recent index inclusion support sentiment
• Positive Sentiment: Recent analyst optimism, Dell’s addition to the S&P 100 and continued demand for enterprise AI servers are providing additional momentum. The stock also benefits from broader strength across server-hardware companies as investors increase exposure to AI infrastructure suppliers. Dell climbs on AI server backlog
• Neutral Sentiment: Dell introduced new Pro Rugged laptops for extreme field environments. The product expansion may support commercial-device sales, but it is likely less influential on the stock than the company’s AI server business. Dell Technologies introduces new Pro Rugged laptops
• Negative Sentiment: Reported insider activity shows extensive selling and no insider purchases during the past six months, including sales by senior executives. While transactions may reflect portfolio diversification or compensation plans, the pattern is a potential sentiment and supply overhang after the stock’s substantial rally.

Wall Street Analysts Forecast Growth

Several analysts have commented on DELL shares. Barclays raised their price objective on shares of Dell Technologies from $550.00 to $603.00 and gave the stock an “overweight” rating in a report on Wednesday, September 2nd. Mizuho increased their target price on Dell Technologies from $500.00 to $600.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 2nd. Evercore restated an “outperform” rating and set a $650.00 price target on shares of Dell Technologies in a research report on Wednesday, September 9th. Deutsche Bank Aktiengesellschaft began coverage on Dell Technologies in a research note on Thursday, September 3rd. They issued a “hold” rating and a $480.00 price target on the stock. Finally, Wells Fargo & Company raised their price objective on Dell Technologies from $505.00 to $545.00 and gave the company an “overweight” rating in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat.com, Dell Technologies currently has a consensus rating of “Moderate Buy” and an average target price of $569.12.

Dell Technologies Stock Performance

The stock has a market cap of $357.35 billion, a PE ratio of 32.62, a price-to-earnings-growth ratio of 0.56 and a beta of 1.37. The firm has a 50-day moving average price of $488.23 and a 200-day moving average price of $365.37.

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

Dell Technologies Announces Dividend

The firm 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 of this dividend is Tuesday, October 20th. This represents a $2.52 annualized dividend and a yield of 0.4%. Dell Technologies’s dividend payout ratio is 14.63%.

Insiders Place Their Bets

In other news, Director Silver Lake Partners Iv, L.P. sold 7,994 shares of the business’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $569.77, for a total value of $4,554,741.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Silver Lake Partners V. De (Aiv sold 26,553 shares of the stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $585.91, for a total value of $15,557,668.23. Following the sale, the director directly owned 59,331 shares in the company, valued at $34,762,626.21. This trade represents a 30.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 2,079,145 shares of company stock worth $1,065,871,452. 41.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GoalVest Advisory LLC grew its position in Dell Technologies by 98,016.2% in the 3rd quarter. GoalVest Advisory LLC now owns 36,303 shares of the technology company’s stock worth $19,529,000 after purchasing an additional 36,266 shares during the period. Private Client Services LLC purchased a new position in shares of Dell Technologies in the 3rd quarter worth $229,000. Noble Wealth Management PBC grew its holdings in shares of Dell Technologies by 113.6% in the third quarter. Noble Wealth Management PBC now owns 47 shares of the technology company’s stock worth $25,000 after acquiring an additional 25 shares during the period. Stonebridge Financial Group LLC bought a new stake in shares of Dell Technologies in the third quarter worth $218,000. Finally, Envestnet Portfolio Solutions Inc. increased its position in Dell Technologies by 71.8% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 6,166 shares of the technology company’s stock valued at $2,660,000 after acquiring an additional 2,576 shares during the last quarter. Institutional investors own 76.37% of the company’s stock.

About Dell Technologies

Dell Technologies Inc (NYSE: DELL) is a global technology company that develops, sells and supports information technology hardware, software and services. Its offerings include personal computers, workstations, monitors, accessories and other client devices, as well as enterprise infrastructure products such as servers, storage systems, networking equipment and data protection solutions.

The company also provides technology consulting, support, managed services and infrastructure solutions designed to help organizations operate data centers, private and hybrid clouds, artificial intelligence workloads and digital workplaces.