A significant driver of top-line growth: Dell Technologies Inc. (DELL)

Dell Technologies Inc. (NYSE: DELL) stock fell -0.56% on Friday to $44.20 against a previous-day closing price of $44.45. With 3.15 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.25 million shares. During the session, the Computer Hardware company that operates in wider Technology sector, reached to the highest price of $44.49 whereas the lowest price it dropped to was $43.55. The 52-week range on DELL shows that it touched its highest point at $61.54 and its lowest point at $38.33 during that stretch. It currently has a 1-year price target of $59.79. With its current market cap of 32.13 billion, DELL has annualized dividend of $1.32 while the current yield stands at 2.99%. Beta for the stock currently stands at 0.81.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DELL was down-trending over the past week, with a drop of -0.67%, but this was up by 4.74% over a month. Three-month performance dropped to -9.44% while six-month performance fell -25.59%. The stock lost -10.41% in the past year, while it has lost -21.31% so far this year. A look at the trailing 12-month EPS for DELL yields 6.50 with Next year EPS estimates of 7.50. For the next quarter, that number is 1.64. This implies an EPS growth rate of 113.30% for this year and 6.38% for next year. EPS is expected to grow by 9.65% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 27.70%.

Float and Shares Shorts:

At present, 754.00 million DELL shares are outstanding with a float of 257.66 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.94 million, which was 0.80% higher than short shares on Jun 14, 2022. In addition to Mr. Michael Saul Dell as the firm’s Chairman & CEO, Mr. Thomas W. Sweet serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 87.01% of DELL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.47% of DELL, in contrast to 34.97% held by mutual funds. Shares owned by individuals account for 21.94%. As the largest shareholder in DELL with 8.35% of the stake, Dodge & Cox holds 22,171,490 shares worth 22,171,490. A second-largest stockholder of DELL, The Vanguard Group, Inc., holds 16,912,175 shares, controlling over 6.37% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in DELL, holding 11,141,623 shares or 4.19% stake. With a 5.01% stake in DELL, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 13,302,988 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.89% of DELL stock, is the second-largest Mutual Fund holder. It holds 7,680,339 shares valued at 354.91 million. Vanguard Extended Market Index Fu holds 1.38% of the stake in DELL, owning 3,672,160 shares worth 169.69 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DELL since 20 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 4 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DELL analysts setting a high price target of $72.00 and a low target of $51.90, the average target price over the next 12 months is $59.49. Based on these targets, DELL could surge 62.9% to reach the target high and rise by 17.42% to reach the target low. Reaching the average price target will result in a growth of 34.59% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DELL will report FY 2023 earnings on 02/24/2023. Analysts have provided yearly estimates in a range of $7.37 being high and $6.81 being low. For DELL, this leads to a yearly average estimate of $7.04. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Dell Technologies Inc. surprised analysts by $0.45 when it reported $1.84 EPS against a consensus estimate of $1.39. The surprise factor in the prior quarter was -$0.23. Based on analyst estimates, the high estimate for the next quarter is $1.73 and the low estimate is $1.57. The average estimate for the next quarter is thus $1.64.

Summary of Insider Activity:

Insiders traded DELL stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 5,969 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 35 over the past year. The total number of shares bought during that period was 2,033,139 while 1,612,041 shares were sold.

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