Dell Technologies (NYSE:DELL) Shares Gap Up – Still a Buy?

Dell Technologies Inc. (NYSE:DELL)’s share price gapped up before the market opened on Friday . The stock had previously closed at $252.80, but opened at $268.10. Dell Technologies shares last traded at $289.4860, with a volume of 2,881,285 shares.

Dell Technologies News Summary

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

• Positive Sentiment: Analysts and market commentators continue to frame Dell as a likely earnings beat, citing strong AI server demand, improving infrastructure solutions revenue, and the potential for management to raise full-year guidance. Dell Technologies set to deliver beat and raise for Q1, says Bank of America
• Positive Sentiment: Unusual options activity also points to bullish speculation, with traders buying far more call options than normal, suggesting some investors are positioning for more upside.
• Positive Sentiment: Coverage ahead of the May 28 earnings release says Dell could benefit from continued AI momentum and strong PC trends, while the stock is already trading near its 52-week high. Dell (DELL) Stock Approaches 52-Week Peak Ahead of Crucial Q1 Earnings Report
• Positive Sentiment: Bank of America and other analysts have reiterated constructive views on Dell, arguing that the company is well positioned for the next phase of enterprise AI spending. Dell Technologies seen as ‘well positioned’ for next phase of enterprise AI: Evercore
• Neutral Sentiment: Dell also announced that an Infrastructure Solutions Group executive will present at an investor conference in June, which keeps the company in front of shareholders but is not a major near-term catalyst. Dell Technologies to Present at Investor Conference in June

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Bank of America upped their price target on Dell Technologies from $246.00 to $280.00 and gave the stock a “buy” rating in a research note on Monday. Zacks Research upgraded Dell Technologies from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, April 21st. Piper Sandler cut their price objective on Dell Technologies from $172.00 to $167.00 and set an “overweight” rating for the company in a research report on Friday, February 27th. Wall Street Zen cut Dell Technologies from a “strong-buy” rating to a “buy” rating in a research report on Saturday, May 16th. Finally, Morgan Stanley upgraded Dell Technologies from an “underweight” rating to a “buy” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $211.32.

Dell Technologies Price Performance

The company has a 50-day simple moving average of $196.18 and a 200-day simple moving average of $152.21. The stock has a market cap of $187.92 billion, a PE ratio of 33.39, a PEG ratio of 0.92 and a beta of 0.99.

Dell Technologies (NYSE:DELL) last released its quarterly earnings data on Thursday, February 26th. The technology company reported $3.89 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.53 by $0.36. Dell Technologies had a negative return on equity of 236.90% and a net margin of 5.23%.The firm had revenue of $33.38 billion during the quarter, compared to analysts’ expectations of $31.60 billion. During the same quarter in the prior year, the business posted $2.68 earnings per share. Dell Technologies’s revenue was up 39.5% compared to the same quarter last year. Dell Technologies has set its Q1 2027 guidance at 2.900-2.900 EPS and its FY 2027 guidance at 12.900-12.900 EPS. On average, equities analysts expect that Dell Technologies Inc. will post 11.87 EPS for the current fiscal year.

Dell Technologies Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 1st. Stockholders of record on Tuesday, April 21st were given a $0.63 dividend. This is an increase from Dell Technologies’s previous quarterly dividend of $0.53. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date was Tuesday, April 21st. Dell Technologies’s dividend payout ratio (DPR) is 28.90%.

Insiders Place Their Bets

In other news, Director Ellen Jamison Kullman sold 150,346 shares of the firm’s stock in a transaction on Friday, March 6th. The stock was sold at an average price of $145.13, for a total value of $21,819,714.98. Following the completion of the transaction, the director owned 65,662 shares in the company, valued at $9,529,526.06. This trade represents a 69.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director V (Gp) L.L.C. Slta sold 510,000 shares of the firm’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $146.83, for a total value of $74,883,300.00. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 3,571,688 shares of company stock valued at $576,654,105. Company insiders own 42.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Dell Technologies by 4.5% in the fourth quarter. Vanguard Group Inc. now owns 31,441,451 shares of the technology company’s stock valued at $3,957,850,000 after buying an additional 1,355,841 shares in the last quarter. State Street Corp boosted its stake in shares of Dell Technologies by 1.8% during the fourth quarter. State Street Corp now owns 14,715,998 shares of the technology company’s stock valued at $1,852,450,000 after acquiring an additional 265,740 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of Dell Technologies by 7.6% during 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 boosted its stake in shares of Dell Technologies by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 7,478,732 shares of the technology company’s stock valued at $939,808,000 after acquiring an additional 108,011 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Dell Technologies by 50.4% during the fourth quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company’s stock valued at $919,051,000 after acquiring an additional 2,445,854 shares during the last quarter. Hedge funds and other institutional investors own 76.37% of the company’s stock.

Dell Technologies Company Profile

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.