Dell Technologies (NYSE:DELL) Stock Price Drops 2.8% - Is It Time to Sell?

The shares of Dell Technologies Inc. (NYSE:DELL) saw a decrease of 2.8% during midday trading on Monday. The stock hit a low of $88.40 before recovering slightly to trade at $89.68. In total, about 1,596,621 shares changed hands, which is a substantial 84% drop from the average daily trading volume of 10,226,299 shares. The stock had closed the previous session at $92.29.

Wall Street Analysts Remain Optimistic

Dell Technologies has been featured in several analyst reports lately. Citigroup cut their price target for Dell from $156.00 to $145.00 while maintaining a "buy" rating. Barclays adjusted their target up slightly from $115.00 to $116.00 and issued an "equal weight" rating. OTR Global has shifted their perspective from a "negative" rating to a "positive" one. Morgan Stanley lowered their target from $154.00 to $128.00 but still rated Dell as "overweight." Bank of America also decreased their target from $155.00 to $150.00, reiterating a "buy" rating. Currently, three analysts have given the stock a hold rating, while sixteen have assigned it a buy rating. According to MarketBeat, the stock has an average consensus rating of "Moderate Buy" along with a price target of $141.24.

Recent Stock Performance

Dell Technologies’ stock has a market capitalization of $63.58 billion. It possesses a price-to-earnings (P/E) ratio of 16.07, a price-to-earnings-growth (PEG) ratio of 1.10, and a beta of 0.83. Over the past fifty days, the stock has traded at an average price of $104.31, while its two-hundred-day average stands at $116.33.

Dividend Announcement

The company has announced an increase in its quarterly dividend, set to be paid on Friday, May 2nd. Record shareholders as of Tuesday, April 22nd, will receive a dividend of $0.525. This is an increase from the previous quarterly dividend of $0.45. The ex-dividend date will also be on April 22nd, bringing the annualized dividend to $2.10, which results in a yield of 2.31%. The company's payout ratio stands at 33.76%.

Insider Trading Activity

In recent insider transactions, Director Radakovich Lynn Vojvodich sold 725 shares of Dell, averaging $120.00, totaling about $87,000. Following this sale, the director now holds 23,680 shares valued at approximately $2,841,600, reflecting a 2.97% reduction in ownership. Another director, referred to as V (Gp) L.L.C. Slta, sold a total of 325,167 shares at an average price of $124.52 for approximately $40.5 million. After the sale, they still own 810,657 shares worth about $101 million, marking a 28.63% decrease in their holdings. Over the past ninety days, insiders have sold a total of 824,937 shares valued at around $100.3 million, with company insiders owning 46.70% of the company’s stock.

Institutional Investments in Dell Technologies

Recent activity from institutional investors shows they have been adjusting their positions in Dell Technologies. The Vanguard Group increased its shareholding by 10.5% in the last quarter, now owning approximately 27.96 million shares valued at $3.22 billion. State Street Corp also increased its holdings by an impressive 92.4%, bringing their total shares to nearly 12.77 million, worth over $1.5 billion. Capital World Investors and Geode Capital Management have also increased their holdings. Notably, Norges Bank acquired a new stake valued at approximately $455 million. Collectively, institutional and hedge fund investors hold 76.37% of Dell Technologies stock.

Company Overview

Dell Technologies Inc. designs and offers a wide range of integrated solutions, products, and services across various sectors globally, managing operations through two main segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

Should You Consider Investing in Dell Technologies?

MarketBeat has noted that while Dell Technologies maintains a "Moderate Buy" rating among analysts, some top investors are recommending alternative stocks that may offer better opportunities. Interested investors should weigh these recommendations carefully.

Dell, Stocks, Investing