In a recent transaction, various entities under the Silver Lake umbrella have sold a significant amount of Dell Technologies Inc. (NYSE:DELL) stock, totaling over $50 million. The sales occurred on June 3, 2024, with prices ranging from $132.04 to $134.22 per share.
The trading activity involved a series of non-derivative transactions where Silver Lake's affiliates disposed of Dell Technologies Class C Common Stock. The sales were executed in multiple transactions, with the weighted average prices provided in footnotes indicating ranges for the separate sales prices.
In detail, the Silver Lake entities sold 107,303 shares at an average price of $132.04, 131,763 shares at the same average price, and 63,575 shares also at $132.04. Additionally, sales included smaller amounts of shares at slightly higher average prices, with 2,354 shares at $132.04, 1,061 shares at $132.04, and 553 shares at $133.47. Furthermore, transactions also involved the sale of 678 shares at $133.47, 328 shares at $133.47, and smaller amounts at the same price, all detailed in the footnotes with the commitment to provide full information upon request.
The entities involved in these transactions are directly associated with Silver Lake, a global leader in technology investing. The sales are part of a broader set of transactions that also included conversions of Class B Common Stock into Class C Common Stock, which were exempt from reporting under Rule 16a-13 of the Exchange Act.
Investors keeping an eye on Dell Technologies will note that these transactions reflect significant moves by one of its major investors. The exact reasons behind the sales are not disclosed in the filing, but such transactions are typical market activities by large institutional investors and private equity firms managing their investment portfolios.
The reported sales represent a substantial divestiture by Silver Lake entities, but it is essential to note that these types of transactions are a regular part of investment management and do not necessarily indicate a change in the company's fundamentals or outlook. Investors interested in Dell Technologies should consider this information as part of their broader investment analysis.
In other recent news, Dell Technologies has been the subject of various analyst assessments, with Citi maintaining a bullish stance, citing the company's potential in the artificial intelligence (AI) market. On the other hand, Barclays (LON:BARC) slightly reduced its price target, expressing concerns about the gross margin associated with Dell's AI servers. TD (TSX:TD) Cowen also adjusted its outlook, raising the price target and acknowledging the company's AI growth prospects, while advising investors to look for a more favorable entry point.
Dell's management has shown optimism about the company's AI opportunities, anticipating a significant market share in this emerging area. This optimism is backed by technological advancements and growing demand for AI capabilities. However, significant investments in AI technology are expected to impact the company's quarterly profit margins, leading to a decrease in its adjusted gross margin rate.
In terms of earnings and revenue, Dell's management expects margins to return to the targeted range of 11-14%, facilitated by increased revenues from seasonal storage demand. However, the company's second quarter adjusted earnings per share (EPS) guidance of $1.65 falls short of the estimated $1.84. These are the recent developments that investors should be aware of, as they reflect the company's current financial situation and future prospects.
InvestingPro Insights
Amidst the substantial divestiture by Silver Lake entities in Dell Technologies Inc. (NYSE:DELL), investors may find it beneficial to consider key financial metrics and market sentiment. Dell has been a prominent player in the Technology Hardware, Storage & Peripherals industry, and despite recent sales by a major investor, the company's financial health and market performance provide additional context for potential investors.
According to recent InvestingPro Data, Dell's market capitalization stands at a robust $96.45 billion, reflecting its significant presence in the market. Additionally, the company's price-to-earnings (P/E) ratio is 27.01, indicating how much investors are willing to pay for each dollar of earnings, which is a crucial metric for valuation purposes. Moreover, Dell's revenue for the last twelve months as of Q1 2025 is reported at $89.75 billion, although it experienced a revenue decline of 7.58% during the same period.
InvestingPro Tips highlight that Dell's management has been aggressively buying back shares, which could be a signal of confidence from the company's leadership in its future prospects. Furthermore, the company has a high shareholder yield, suggesting a commitment to returning value to its investors. It is also worth noting that Dell has been trading at a low P/E ratio relative to near-term earnings growth, potentially presenting an attractive valuation for those looking at the company's future earnings potential.
For a deeper dive into Dell Technologies' financials and to access a full range of InvestingPro Tips, interested readers can explore https://www.investing.com/pro/DELL. There are over 13 additional tips available, providing a comprehensive analysis of Dell's financial health and market performance. Subscribers can use the promo code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment research with valuable insights and data.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.