Executives and entities associated with Silver Lake, the global private equity firm, have recently sold a significant amount of Dell Technologies Inc. (NYSE:DELL) shares. The total value of the shares sold exceeds $61 million, with individual transaction prices ranging from $157.56 to $160.36.
The sales were conducted on June 20, 2024, by various entities under the Silver Lake umbrella, including Silver Lake Group, L.L.C., Silver Lake Partners IV, L.P., Silver Lake Technology Investors IV, L.P., and others. The shares were held indirectly through various partnerships and limited partnerships, indicating a complex structure of ownership.
Egon Durban, a director of Dell Technologies Inc. and Co-CEO and Managing Member of Silver Lake Group, L.L.C., is also involved in the transactions. While the exact number of shares Durban sold is not detailed, the filings indicate that entities in which he may be deemed to have an indirect pecuniary interest were part of the selling group.
This move comes amidst a period where Dell Technologies Inc. has been experiencing shifts in its ownership structure. The shares sold were Class C Common Stock, a category that allows for conversion from Class B Common Stock, which has similar characteristics and is convertible at any time at the holder's discretion.
It's important to note that the reporting of these transactions does not necessarily imply that the reporting persons are beneficial owners of all securities covered by the filing. Each reporting person has disclaimed beneficial ownership of these securities, except to the extent of their pecuniary interest therein.
Investors and market watchers often pay close attention to such filings to gauge the sentiment and future actions of company insiders and significant shareholders. The sale of shares by Silver Lake entities and Egon Durban represents a noteworthy adjustment in their investment in Dell Technologies Inc.
In other recent news, Nvidia Corporation (NASDAQ:NVDA) has received significant server orders from Elon Musk's artificial intelligence startup, xAI, which is expected to considerably bolster Nvidia's market capitalization. Dell Technologies and Super Micro Computer (NASDAQ:SMCI), Nvidia's partners, are supplying server racks for xAI's supercomputer, which will further advance the capabilities of the AI tool Grok. The supercomputer is expected to be operational by fall 2025.
In the same vein, Dell Technologies has been maintaining a positive stance in the AI market, with BofA Securities maintaining a 'Buy' rating on Dell stock due to the company's potential in the enterprise AI sector. The company experienced an 80% quarter-over-quarter surge in Enterprise AI demand in the last quarter. Evercore ISI also maintains an 'Outperform' rating on Dell, citing potential improvements in the company's storage margins by fiscal year 2025.
Meanwhile, Citi has reiterated its 'Buy' rating on Dell Technologies, citing the company's potential in the AI market. Dell's management is optimistic about its AI market share and anticipates a return to targeted profit margins of 11-14% due to increased revenue from seasonal storage demand. These are recent developments that investors should note.
InvestingPro Insights
Amidst the recent sales of Dell Technologies Inc. (NYSE:DELL) shares by Silver Lake entities and Egon Durban, current metrics and analyst insights from InvestingPro paint a detailed picture of the company's financial landscape. Dell's market capitalization stands at a robust $98.02 billion, reflecting its substantial presence in the market. This size is indicative of Dell's position as a prominent player in the Technology Hardware, Storage & Peripherals industry, as noted in one of the InvestingPro Tips.
Another key metric for investors is the company's P/E ratio, which is currently at 27.8. This figure has been adjusted in the last twelve months as of Q1 2025 to 23.32, suggesting that Dell is trading at a low P/E ratio relative to near-term earnings growth. Additionally, the PEG ratio for the same period stands at 0.32, further emphasizing the company's potential for growth in earnings compared to its share price.
Investors looking for returns will note that Dell has experienced a high return over the last year, with a 1 Year Price Total Return of 176.13%. This performance is consistent with the strong returns Dell has shown over the past three months, five years, and the last decade, which are highlighted in the InvestingPro Tips. However, it's important to be aware that 11 analysts have revised their earnings downwards for the upcoming period, which could impact future performance.
For those considering adding Dell Technologies to their portfolio, or for current shareholders evaluating their positions, more InvestingPro Tips are available, offering deeper insights into the company's performance and outlook. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 12 additional InvestingPro Tips that can guide investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.