Schroder Investment Group Reduces Stake in Dell Technologies

Schroder Investment Management Group has reduced its stake in Dell Technologies Inc. (NYSE: DELL) by 3.7% during the second quarter of 2023, according to a report from HoldingsChannel.com. The investment firm now holds 179,069 shares of the technology company after selling 6,812 shares during the quarter. This reduction brings the value of Schroder’s holdings in Dell to approximately $21.95 million.

Other institutional investors have also been active in Dell Technologies’ stock. Norges Bank established a new position valued at around $528.28 million during the same quarter. Boston Partners increased its stake by 34.4% in the first quarter, now owning a total of 5,132,877 shares worth $466.42 million after acquiring an additional 1,312,600 shares. Vanguard Group Inc. raised its holdings by 4.1%, bringing its total to 29,106,218 shares valued at $2.65 billion. Deutsche Bank AG also expanded its position by 38.1%, now owning 4,141,618 shares worth $377.51 million. Alkeon Capital Management LLC saw a similar increase of 41.4%, owning 3,177,809 shares valued at $289.66 million.

As a result, institutional investors and hedge funds collectively own 76.37% of Dell Technologies’ stock.

Analyst Ratings and Market Performance

Recent analyses by various research firms have provided insights into Dell Technologies’ stock performance. Morgan Stanley raised its price target from $110.00 to $113.00 while maintaining an “underweight” rating as of November 26, 2023. Citic Securities increased its price target from $150.00 to $160.00, assigning a “buy” rating on November 28, 2023. Wall Street Zen upgraded the stock from “hold” to “buy” on September 13, 2023. Cowen reiterated a “hold” rating on August 29, 2023. Additionally, Daiwa Capital Markets raised its target from $125.00 to $140.00 with an “outperform” rating on September 11, 2023.

In total, sixteen investment analysts have rated Dell Technologies with a “buy” rating, eight gave it a “hold” rating, and one assigned a “sell” rating. The current consensus rating stands at “Moderate Buy” with an average target price of $162.32.

Insider transactions have also been noteworthy. Director Ellen Jamison Kullman sold 79,806 shares on October 15, 2023, for approximately $12.26 million, reducing her ownership to 65,662 shares valued at around $10.08 million. Additionally, the investment firm Iv (Gp) L.L.C. Slta sold 499,999 shares on October 8, 2023, for a total of $80.74 million. In the past three months, insiders have sold a total of 4,537,755 shares valued at $642.64 million. Currently, insiders own 42.00% of the company’s stock.

Recent Earnings and Dividends

Dell Technologies reported its quarterly earnings on November 25, 2023, revealing earnings per share (EPS) of $2.59. This surpassed the consensus estimate of $2.47 by $0.12. The company reported a net margin of 5.01% and a negative return on equity of 234.84%. Revenue for the quarter reached $27.01 billion, slightly below analyst predictions of $27.26 billion. Year-on-year, revenue increased by 10.8% from the previous quarter, where the EPS was $2.15.

Looking ahead, Dell Technologies has set its fiscal year 2026 guidance at $9.92 EPS and its fourth quarter 2026 guidance at $3.50 EPS. Analysts forecast that the company will post $6.93 EPS for the current fiscal year.

In addition, Dell Technologies declared a quarterly dividend of $0.525 per share, which was paid on October 31, 2023. Shareholders of record as of October 21, 2023, received the dividend, representing an annualized amount of $2.10 and a yield of 1.5%. The company’s dividend payout ratio currently stands at 28.00%.

Dell Technologies continues to design, develop, manufacture, and market a wide array of integrated solutions and services globally, operating through its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). As the technology landscape evolves, the company’s ability to adapt and grow remains crucial for investors and stakeholders alike.