Dell Technologies Inc. (NYSE:DELL), currently valued at $76.26 billion, has issued 3,991,503 shares of its Class C common stock following the conversion of an equal number of Class B common stock shares, according to a recent 8-K filing with the SEC.
The conversions, occurring between December 5, 2024, and January 8, 2025, were initiated by several entities under Silver Lake Partners. According to InvestingPro data, Dell's management has been actively managing its share structure, with aggressive share buybacks being a notable feature of their capital allocation strategy.
As a result of these transactions, the company reported that as of January 8, 2025, there were 358,574,323 shares of Class C common stock and 62,368,123 shares of Class B common stock outstanding.
The conversions are part of the rights held by Class B stockholders, allowing them to convert their holdings to Class C stock on a one-to-one basis at any time, as per Dell's certificate of incorporation. The stock has seen significant volatility recently, with InvestingPro showing a 9.15% decline in the past week, though it remains up 41% over the past year.
Class C shares issued through these conversions have the same dividend and liquidation rights as the Class B shares. The conversions were executed in accordance with Section 3(a)(9) of the Securities Act of 1933, which exempts transactions from registration if they involve the exchange of securities among existing shareholders without payment of any commission.
Dell anticipates that any future conversions of Class B to Class C common stock will also be conducted without registration, relying on the same exemption. This move is part of Dell's ongoing management of its equity structure and does not involve any external sales or transactions.
In other recent news, Dell Technologies has unveiled a series of groundbreaking PC monitors and an AI-enhanced PC lineup, marking significant strides in the technology hardware industry. The company's third-quarter earnings saw a 10% increase, reaching $24.4 billion, primarily due to the Infrastructure Solutions Group's focus on AI infrastructure and server solutions.
Furthermore, Dell's earnings per share rose to $2.15, marking a 14% year-over-year increase. Bernstein analysts at SocGen Group maintained an Outperform rating on Dell's shares, reflecting confidence in the company's operational strengths.
In a separate development, xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding over one million Graphics Processing Units (GPUs). This move involves Fortune 500 companies Nvidia (NASDAQ:NVDA), Dell, and Supermicro Computer and underscores Memphis's emerging status as a global hub for AI.
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