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Dell CEO Michael S. Dell sells over $1.17 billion in company stock

Published 23/09/2024, 23:16
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Michael S. Dell, Chief Executive Officer of Dell Technologies Inc. (NYSE:DELL), has sold a substantial amount of company stock, transactions that are disclosed in a recent filing with the Securities and Exchange Commission. The series of sales, which took place between September 19 and September 23, amounted to over $1.17 billion, with share prices ranging from $115.80 to $118.52.

The SEC filing details multiple transactions where Dell offloaded shares of Dell Technologies' Class C Common Stock. On September 19, he sold 500,000 shares at a weighted average price of approximately $117.93. The sales continued over the next few days, with 143,981 shares sold at an average of $115.80, 1,038,065 shares at $116.81, 6,726,692 shares at $117.52, 424,667 shares at $118.52, 994,813 shares at $117.34, and finally, 171,782 shares at $117.85.

Following these transactions, Michael Dell still holds a significant number of shares in the company, indicating a continued vested interest in Dell Technologies' performance and future. The SEC filing does not associate these sales with any immediate personal or business plans of Mr. Dell, and it is not uncommon for executives to sell shares for reasons ranging from personal financial planning to diversification strategies.

Investors often monitor insider transactions for insights into executive perspectives on a company's valuation and prospects. While these sales are substantial in volume and value, it's important to consider them within the broader context of an insider's total holdings and the company's overall share performance.

As per the SEC filing, Dell Technologies Inc. and Mr. Dell have committed to providing further details regarding the specific prices of shares sold within the reported range upon request. This transparency ensures that investors have access to all pertinent information regarding these transactions.

For those interested in the specifics of Dell's remaining holdings, the filing also notes an indirect ownership of 1,380,000 shares by Susan Lieberman Dell Separate Property Trust, for which Mr. Dell disclaims beneficial ownership in accordance with SEC rules.

The reported sales represent a notable change in the CEO's stake in the company, and investors will be watching closely to see if these transactions signal any strategic shifts for Dell Technologies Inc. in the near future.


In other recent news, Dell Technologies reported robust growth in its core businesses and the artificial intelligence (AI) market. The company's Client Solutions Group and Infrastructure Solutions Group expanded by 12% and 38% respectively, and the firm holds a $3.8 billion backlog in the AI market. Analysts from Mizuho, Susquehanna, and Evercore ISI have all recently provided their insights on Dell's prospects. Mizuho initiated coverage on Dell with an Outperform rating and a price target of $135, highlighting the company's diverse portfolio and strong free cash flow. Conversely, Susquehanna issued a Neutral rating with a price target of $120, expressing concerns about the uncertain returns of AI hardware and Dell's AI services scaling strategy. Evercore ISI maintained a positive outlook, reiterating an Outperform rating and a $140 price target, despite potential gross margin headwinds from AI servers and inflationary component costs. In addition, Dell Technologies has issued 26.5 million Class C common shares to Michael Dell, the company's founder and CEO, following a conversion of an equivalent number of Class A common shares. This conversion brings Michael Dell's beneficial ownership to 271.8 million shares of Class A common stock and 36.9 million shares of Class C common stock.


InvestingPro Insights


Dell Technologies Inc. (NYSE:DELL) has been a topic of interest for investors, especially following the significant stock sales by CEO Michael S. Dell. InvestingPro provides deeper insights that may help investors understand the company's current valuation and performance. According to InvestingPro data, Dell has a market capitalization of $82.59 billion and is trading at a P/E ratio of 20.98, which adjusts to 18.31 based on the last twelve months as of Q2 2025.

The company's revenue in the last twelve months as of Q2 2025 stood at $91.84 billion, with a slight decline in revenue growth of -1.9%. However, Dell has shown a quarterly revenue growth of 9.12% in Q2 2025. This mixed growth performance is complemented by a gross profit margin of 22.54%, demonstrating the company's ability to maintain profitability.

InvestingPro Tips highlight several key points for investors to consider. Dell Technologies has been actively buying back shares, which is often viewed positively as it can indicate management's confidence in the company's future. Additionally, Dell has a high shareholder yield and has raised its dividend for three consecutive years, reflecting a commitment to returning value to shareholders.

For further insights, InvestingPro offers a total of 14 additional tips on Dell Technologies, including the company's P/E ratio relative to near-term earnings growth and its position as a prominent player in the Technology Hardware, Storage & Peripherals industry. These additional tips are available at https://www.investing.com/pro/DELL and can provide investors with a more comprehensive view of the company's financial health and market position.

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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