Dell Technologies Shares Decline After Analyst Downgrade

Dell Technologies Inc. (NYSE:DELL – Get Free Report) experienced a decline of 3.2% in its stock price during mid-day trading on Thursday. This downturn followed a downgrade from Morgan Stanley, which reduced its price target for Dell's shares from $154.00 to $128.00. Despite this adjustment, Morgan Stanley maintained an overweight rating on the stock. At one point, Dell Technologies shares fell to a low of $109.26 before closing at $109.34. The trading volume was around 2,275,012 shares, marking a significant decrease of 71% from the average daily volume of 7,886,983 shares. Prior to this day, the stock had closed at $112.92.

Several analysts have shared their views on Dell Technologies recently. Wells Fargo & Company raised their price target from $140.00 to $160.00, retaining an overweight rating. Melius Research also increased their target from $140.00 to $155.00, offering a buy rating in a recent note. Additionally, OTR Global changed their rating for Dell from negative to positive in another report. Evercore ISI reaffirmed an outperform rating with a target price of $150.00. Meanwhile, JPMorgan Chase & Co. lowered their price target from $160.00 to $150.00 while keeping an overweight rating. In total, three analysts have a hold rating, while sixteen have a buy rating for the company. According to MarketBeat, the average consensus rating stands at 'Moderate Buy' with an average target price of $145.94.

Insider Activity at Dell Technologies

In other news regarding insider trading, Director Radakovich Lynn Vojvodich sold 725 shares on December 16th at an average price of $120.00, totaling about $87,000. Following the sale, Vojvodich owns 23,680 shares of Dell, now valued at approximately $2.84 million, representing a 2.97% decrease in ownership. Furthermore, Director Iv (Gp) L.L.C. Slta sold 499,045 shares on January 8th at an average price of $119.73, amounting to roughly $59.75 million. After this sale, they hold 810,657 shares valued at about $97.06 million, showing a 38.10% decline in their position. For the last quarter, insiders sold a total of 945,407 shares worth $115.56 million, indicating that insiders maintain approximately 46.70% of the company’s stock.

Institutional Investor Movements

Recently, various hedge funds have adjusted their holdings in Dell Technologies. For instance, Vanguard Group Inc. increased its position by 10.5% in the fourth quarter, now owning about 27.96 million shares valued at approximately $3.22 billion after purchasing an additional 2.66 million shares. State Street Corp also saw a significant increase, boosting its stake by 92.4% to currently hold around 12.77 million shares worth about $1.51 billion. Capital World Investors raised their holdings by 0.6%, owning nearly 12.46 million shares valued at $1.44 billion. Geode Capital Management expanded its position by 8.7%, owning about 6.87 million shares worth approximately $790 million. Finally, Norges Bank purchased a new position valued at about $455 million during the same quarter. Overall, institutional investors control around 76.37% of Dell Technologies' stock.

Recent Trading Performance and Dividend

Dell Technologies has a market capitalization of $80.05 billion, a price-to-earnings ratio of 20.19, and a PEG ratio of 0.91, with a beta of 0.90. The stock's 50-day moving average price stands at $113.36, and the 200-day moving average is $117.10. The latest quarterly earnings report stated that Dell Technologies posted earnings per share (EPS) of $2.15, surpassing the consensus estimate of $1.83 by $0.32. While the company had a net margin of 4.36% with a negative return on equity of 191.91%, its revenue for the quarter was $24.37 billion, slightly below the expected $24.67 billion, yet up 9.5% year-over-year. Analysts predict that Dell Technologies will report an EPS of 6.92 for the current fiscal year.

The firm also declared a quarterly dividend of $0.445, which was paid on January 31st to shareholders who were on record by January 22nd, with an annualized yield of 1.56%. The company’s dividend payout ratio is around 31.45%.

Overview of Dell Technologies

Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of integrated products, solutions, and services. The company operates globally across different segments, including the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

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