Dell Technologies (NYSE:DELL) Trading Down 2.6% After Earnings Miss

Shares of Dell Technologies Inc. (NYSE:DELL) dropped 2.6% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $110.77 and last traded at $112.63. Approximately 3,362,108 shares changed hands during trading, a decline of 58% from the average daily volume of 8,091,356 shares. The stock had previously closed at $115.65.

The technology company reported $2.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.83 by $0.32. Dell Technologies had a negative return on equity of 191.91% and a net margin of 4.36%. The company had revenue of $24.37 billion for the quarter, compared to the consensus estimate of $24.67 billion. During the same quarter in the previous year, the business earned $1.62 EPS. Dell Technologies’s revenue was up 9.5% compared to the same quarter last year.

Dell Technologies Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 2nd. Investors of record on Tuesday, April 22nd will be issued a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 2.04%. The ex-dividend date is Tuesday, April 22nd. This is an increase from Dell Technologies’s previous quarterly dividend of $0.45. Dell Technologies’s payout ratio is currently 31.45%.

Analysts Set New Price Targets

Several brokerages have recently issued reports on DELL. OTR Global raised Dell Technologies from a “negative” rating to a “positive” rating in a research report on Wednesday, February 12th. JPMorgan Chase & Co. decreased their target price on Dell Technologies from $160.00 to $150.00 and set an “overweight” rating for the company in a research report on Tuesday, February 11th. Mizuho decreased their target price on Dell Technologies from $155.00 to $150.00 and set an “outperform” rating for the company in a research report on Wednesday, November 27th. Morgan Stanley decreased their target price on Dell Technologies from $154.00 to $128.00 and set an “overweight” rating for the company in a research report on Thursday, February 13th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on Dell Technologies from $144.00 to $142.00 and set a “buy” rating for the company in a research report on Monday, December 2nd. Three analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $143.53.

Insider Transactions at Dell Technologies

In related news, Director Radakovich Lynn Vojvodich sold 725 shares of the firm’s stock in a transaction on Wednesday, January 22nd. The stock was sold at an average price of $120.00, for a total value of $87,000.00. Following the transaction, the director now directly owns 23,680 shares of the company’s stock, valued at approximately $2,841,600. This trade represents a 2.97 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Yvonne Mcgill sold 8,000 shares of the firm’s stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $125.82, for a total value of $1,006,560.00. Following the completion of the transaction, the chief financial officer now directly owns 228,419 shares in the company, valued at approximately $28,739,678.58. This represents a 3.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 937,407 shares of company stock worth $114,418,186 in the last ninety days. Insiders own 46.70% of the company’s stock.

Institutional Investors Weigh In On Dell Technologies

A number of institutional investors and hedge funds have recently bought and sold shares of DELL. Bellwether Advisors LLC bought a new stake in Dell Technologies during the fourth quarter valued at about $25,000. Vision Financial Markets LLC bought a new stake in Dell Technologies during the fourth quarter valued at about $26,000. Lee Danner & Bass Inc. bought a new stake in Dell Technologies during the fourth quarter valued at about $26,000. Byrne Asset Management LLC bought a new stake in Dell Technologies during the fourth quarter valued at about $28,000. Finally, True Wealth Design LLC raised its holdings in Dell Technologies by 2,530.0% during the third quarter. True Wealth Design LLC now owns 263 shares of the technology company’s stock valued at $31,000 after acquiring an additional 253 shares during the period. 76.37% of the stock is owned by institutional investors.

Dell Technologies Stock Down 4.6 %

The stock has a fifty day simple moving average of $112.57 and a 200 day simple moving average of $118.17. The firm has a market capitalization of $72.04 billion, a P/E ratio of 18.17, a PEG ratio of 1.10 and a beta of 0.90.

Dell Technologies Company Profile

Dell Technologies Inc designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).