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Silver Lake entities sell Dell shares worth over $77 million

Published 03/18/2024, 08:40 PM
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Silver Lake's various entities have recently conducted significant transactions involving the stock of Dell Technologies Inc. (NYSE:DELL), resulting in the sale of shares totaling over $77 million. The entities involved in these transactions include SLTA V (GP), L.L.C., Silver Lake Technology Investors V, L.P., Silver Lake Partners V DE (AIV), L.P., and Silver Lake Technology Associates V, L.P.

The sales, carried out on March 15, 2024, saw prices ranging from $107.17 to $108.97 per share. The weighted average prices for the transactions were reported between $106.94 to $107.9396 for some shares, and between $107.94 to $108.93 for others. Additionally, a smaller batch of shares was sold at prices from $108.95 to $108.98. These transactions involved a total of $77,439,813 worth of Dell's Class C Common Stock.

The entities also engaged in conversions of Class B Common Stock into Class C Common Stock, which were associated with the sales and distributions to partners and members. These conversions were performed at a zero-dollar transaction price, as the Class B shares are convertible at any time into an equal number of Class C shares.

Investors monitoring insider transactions may find these sales noteworthy, as they represent a substantial movement of Dell stock by Silver Lake entities, which are led by Egon Durban, a director of Dell Technologies Inc. The sales and distributions mentioned align with the broader financial maneuvers of the investment firm within the technology sector.

The transactions have been filed with the Securities and Exchange Commission and are publicly accessible for those interested in the specifics of the trading activity. As per standard regulatory requirements, the filings include detailed footnotes and remarks clarifying the nature of these transactions and the relationships between the different Silver Lake entities.

InvestingPro Insights

As Dell Technologies Inc. (NYSE:DELL) sees significant insider transactions, investors and analysts are keeping a close eye on the company's performance and market position. According to recent data from InvestingPro, Dell boasts a substantial market capitalization of $75.3 billion, reflecting its prominence in the Technology Hardware, Storage & Peripherals industry. Despite a recent revenue decline of 13.56% over the last twelve months as of Q4 2024, Dell maintains a strong gross profit margin of 23.6%, showcasing its ability to retain earnings relative to revenue.

InvestingPro Tips highlight that Dell's management has been actively engaging in share buybacks, signaling confidence in the company's value and future prospects. This aligns with the company's high shareholder yield, which is an attractive feature for investors seeking returns. Additionally, Dell is trading at a low P/E ratio relative to near-term earnings growth, with a P/E ratio of 24.53 and an adjusted P/E ratio for the last twelve months as of Q4 2024 at 23.45. This suggests that the stock may be undervalued given its earnings potential.

For investors looking for more in-depth analysis and additional InvestingPro Tips, such as Dell's free cash flow yield and short-term liquidity concerns, there are 14 more tips available at https://www.investing.com/pro/DELL. Readers can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to comprehensive insights that could inform their investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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