Silver Lake, a global leader in technology investing, has made significant transactions involving shares of Dell Technologies Inc. (NYSE:DELL). Through its various entities, Silver Lake has sold a total of $2,072,156 worth of Dell's Class C Common Stock at an average price of $106.95 per share. These sales occurred on March 18, 2024, and were disclosed in a recent filing.
The entities involved in the transactions include SLTA V (GP), L.L.C., Silver Lake Technology Associates V, L.P., Silver Lake Partners V DE (AIV), L.P., and Silver Lake Technology Investors V, L.P. These entities are associated with Silver Lake's investment structures and are connected through a web of general partnerships and limited partnerships.
The sales were executed in a series of multiple transactions, with prices ranging from $106.90 to $107.0865. The filing also noted that the shares were held indirectly through various Silver Lake partnerships, indicating a complex structure of ownership.
Notably, the transactions included the conversion of Class B Common Stock into Class C Common Stock, which was then sold. The Class B Common Stock is noted for its convertibility feature, allowing holders to convert it into an equal number of shares of Class C Common Stock at any time.
The filing was made jointly by the reporting persons and was signed by Andrew J. Schader, Managing Director and General Counsel of Silver Lake Group, L.L.C. It was also clarified that the filing does not deem the reporting persons as beneficial owners of all the securities covered by the filing for the purposes of Section 16 of the Exchange Act, except to the extent of their pecuniary interest.
Investors and market watchers often scrutinize such filings for insights into the strategies and confidence levels of major stakeholders in key technology companies like Dell Technologies. The disclosed transactions by Silver Lake entities offer a glimpse into the investment moves of one of the tech sector's most influential players.
InvestingPro Insights
As Silver Lake adjusts its holdings in Dell Technologies Inc. (NYSE:DELL), investors may also consider the company's current financial health and market performance for a broader investment perspective. According to real-time data from InvestingPro, Dell has a substantial market capitalization of $78.45 billion, reflecting its significant presence in the technology sector. The company's P/E ratio stands at 25.08, with a more attractive adjusted P/E ratio of 23.65 for the last twelve months as of Q4 2024, indicating a potentially undervalued stock relative to near-term earnings growth.
Dell's revenue for the last twelve months as of Q4 2024 is reported at $88.42 billion, despite a revenue decline of 13.56% during the same period. This suggests that while Dell is generating considerable revenue, it has faced challenges that impacted its revenue growth. The company's gross profit margin remains healthy at 23.6%, demonstrating its ability to maintain profitability amidst revenue fluctuations.
InvestingPro Tips for Dell highlight several key points for investors to consider. Notably, management's aggressive share buyback strategy could signal confidence in the company's future, as share repurchases often aim to increase shareholder value. Additionally, Dell is recognized for its high shareholder yield and its position as a prominent player in the Technology Hardware, Storage & Peripherals industry. Despite some analysts revising their earnings expectations downwards for the upcoming period, the company is still expected to be profitable this year, with a history of profitability over the last twelve months.
For investors seeking a comprehensive analysis of Dell Technologies and additional insights, InvestingPro offers a suite of advanced tools and metrics. With 13 more InvestingPro Tips available for Dell, investors can deepen their understanding of the company's financials and market performance. To access these insights, consider subscribing to InvestingPro using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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