Silver Lake, a significant stakeholder in Dell Technologies Inc. (NYSE:DELL), recently executed a series of stock sales amounting to approximately $12.9 million. The transactions, dated December 6, 2024, involved the sale of Dell's Class C Common Stock at prices ranging between $125.28 and $126.15 per share. The sales come as Dell's stock has delivered an impressive 83% return over the past year, with the company currently valued at $86.7 billion. According to InvestingPro analysis, Dell appears fairly valued, with analyst price targets ranging from $115 to $220.
The sales were carried out by various Silver Lake entities, including 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. Post-transaction, these entities continue to hold shares in Dell Technologies through indirect ownership structures.
These sales are part of a broader strategy by Silver Lake, which has been a long-term investor in Dell Technologies. While the transactions reflect a significant monetary value, they represent a partial divestment of Silver Lake's holdings in the company.
In other recent news, Dell Technologies reported a 10% increase in third-quarter earnings, with revenue reaching $24.4 billion. This growth was primarily driven by the Infrastructure Solutions Group's focus on AI infrastructure and server solutions. The company's earnings per share rose to $2.15, marking a 14% year-over-year increase. Dell also declared a quarterly cash dividend of $0.445 per common share after a 20% increase in the company's annual cash dividend.
The company issued 25 million Class C common shares upon the conversion of an equal number of Class A common shares by CEO Michael Dell, as part of the company's internal equity structure. In the field of artificial intelligence, xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding over one million Graphics Processing Units (GPUs), marking the largest capital investment in the Memphis region. Dell, along with Nvidia (NASDAQ:NVDA) and Supermicro Computer, are set to establish operations in the city.
Analyst firm TD Cowen maintained its Hold rating on Dell, citing underperformance in the PC segment and delayed revenue from AI initiatives. Meanwhile, Mizuho (NYSE:MFG) Securities, Goldman Sachs, and Citi maintained positive ratings on Dell, adjusting their price targets accordingly. These are recent developments in the company's operations and financial performance.
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