Is Dell Technologies Inc. (DELL) A Good Investment?

Dell Technologies Inc. (NYSE:DELL) finished Thursday with an addition of $1.55 to close at $107.05, an upside of 1.47 percent. An average of 1,863,480 shares of common stock have been traded in the last five days. There was a gain of $3.01 in the past week. The last 20 days have seen an average of 2,927,810 shares traded, while the 50-day average volume stands at 2,163,846.

DELL stock has increased by 12.81% in the last month. The company shares reached their 1-month lowest point of $94.17 on 09/08/21. With the stock rallying to its 52-week high on 10/07/21, shares of the company touched a low of $58.88 and a high of $106.57 in 52 weeks. In spite of this, the price is up 0.45% from the 52-week high.


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Insider Transactions

15 days have passed since Dell Technologies Inc. (DELL) last reported insider trading activity. Dew Allison, who is Chief Marketing Officer, most recently acquired $68,543 shares at $105.00 per share on Sep 23. In this transaction, the insider spent $7,197,015. Chief Financial Officer, Sweet Thomas W, disposed of 281,818 shares at a price of $95.43 on Sep 10. The insider now owns more than $26,893,445 worth of shares. Prior to that, General Counsel & Secretary Rothberg Richard J went on to Sale 6,099 shares at $97.03 each on Sep 02. An amount of $591,786 was transacted.

Valuation Metrics

Dell Technologies Inc. (DELL) has a trailing price-to-earnings (P/E) ratio of 22.06, which compares with the 23.30 for the broader industry and 37.11 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Dell Technologies Inc.’s PE ratio has ranged between 25.60 and 4.772. The stock’s beta is 0.89. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.80, the price-to-book (PB) ratio at 16.94, and the price-to-cash flow ratio at 7.60.

The company has a payout ratio of 0.00%. The company’s most recent quarterly dividend payment was $0.13 a share, representing a up of 38.46 from $0.08 last year.

The quick ratio of Dell Technologies Inc. for the three months ended July 30 was 0.70, and the current ratio was 0.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 7.70 and a total debt to equity ratio of 9.04 For the recent quarter ending July 30. On the profitability front, the trailing 12-month gross margin is 31.00% against a 5-year average of 27.6%. Dell Technologies Inc.’s EBITDA margin for the year ending July 30 is 12.71%, while its operating margin for the same period stands at 6.40%. Its gross profit as reported stood at $29.42 billion compared to revenue of $94.22 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Dell Technologies Inc.’s return on assets was 3.10%, compared to 0.2% over the last five years. For the broader industry, ROE averaged 3.62 over the past year.

Earnings Surprise

The analyst consensus anticipated Dell Technologies Inc.’s latest quarter earnings to come in at $2.03 per share, but it turned out to be $2.24, a 10.30% surprise. For the recent quarter, EBITDA amounted to $2.61 billion. Shareholders own equity worth $765.12 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Dell Technologies Inc. (DELL) price momentum. RSI 9-day as of the close on 07 October was 70.08%, suggesting the stock is Overbought, with historical volatility in this time frame at 14.17%.

As of today, DELL’s price is $105.90 +2.89% or $3.01 from its 5-day moving average. DELL is currently trading +11.07% higher than its 20-day SMA and +8.80% higher than its 100-day SMA. However, the stock’s current price level is +11.64% above the SMA50 and +46.52% above the SMA200.

The stochastic %K and %D were 91.90% and 90.52%, respectively, and the average true range (ATR) was 2.32. With the 14-day stochastic at 95.50% and the average true range at 2.32, the RSI (14) stands at 66.35%. The stock has reached 0.71 on the 9-day MACD Oscillator while the 14-day reading was at 2.22.

Analyst Ratings

UBS reiterated its a Buy rating on Dell Technologies Inc. (NYSE: DELL), but raised their price target to $113, indicating a potential price increase of 5.56% for the stock.The consensus rating for Dell Technologies Inc. (DELL) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell DELL, while 5 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 11 others rate it as a “buy”.

What is DELL’s price target for the next 12 months?

Analysts predict a range of price targets between $101.00 and $137.00, with a median target of $120.00. Taking a look at these predictions, the average price target given by analysts for Dell Technologies Inc. (DELL) stock is $119.12.

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