Lynn Vojvodich, a director at Dell Technologies Inc. (NYSE:DELL), recently sold shares of the company’s Class C Common Stock. According to a filing with the Securities and Exchange Commission, Vojvodich sold 725 shares at a price of $120 each, amounting to a total transaction value of $87,000.
The transactions were conducted on December 16, 2024, as part of a pre-established Rule 10b5-1 trading plan, which was adopted on July 15, 2024. Following this sale, Vojvodich holds 23,680 shares of Dell Technologies. The stock has shown remarkable strength, delivering a 58% return year-to-date, while maintaining a relatively low P/E ratio relative to its near-term earnings growth, according to InvestingPro data.
In addition to the sale, Vojvodich also acquired 725 shares through the exercise of stock options at a price of $31.14 per share, valued at a total of $22,576. These options, which are fully vested, were converted into Class C Common Stock on the same day. After these transactions, Vojvodich's total direct ownership stands at 70,526 shares. InvestingPro subscribers can access 12 additional investment tips and comprehensive analysis through the Pro Research Report, offering deeper insights into Dell's financial health and market position.
In other recent news, Dell Technologies has been the subject of various developments. The company reported a 10% increase in third-quarter earnings, with revenue rising to $24.4 billion. This growth was primarily driven by the Infrastructure Solutions Group's focus on AI infrastructure and server solutions. Dell's earnings per share also rose to $2.15, marking a 14% year-over-year increase. The company declared a quarterly cash dividend of $0.445 per common share after a 20% increase in the annual cash dividend.
In line with these developments, Dell disclosed the issuance of 25 million Class C common shares upon the conversion of an equal number of Class A common shares by CEO Michael Dell. This action is part of the company's internal equity structure and was executed in accordance with Dell's certificate of incorporation.
On the analyst front, TD Cowen maintained its Hold rating on Dell, citing underperformance in the PC segment and delayed revenue from AI initiatives. However, Mizuho (NYSE:MFG) Securities, Goldman Sachs, and Citi maintained positive ratings on Dell, adjusting their price targets accordingly.
In the broader industry context, a recent Bernstein survey showed that CIOs anticipate IT spending to grow from 6% in 2024 to 7-8% in 2025. They are prioritizing investments in software, networking, and storage, while spending on mainframes is predicted to decline. The AI company xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding over one million Graphics Processing Units (GPUs). This move signifies the largest ever capital investment in the Memphis region.
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