Silver Lake Group, L.L.C., a prominent private equity firm, reported significant stock sales of Dell Technologies Inc. (NYSE:DELL) shares, a company currently valued at $83.45 billion. According to a recent SEC filing, Silver Lake sold shares totaling approximately $40.3 million. The transactions, conducted on January 7, 2025, saw the shares sold at prices ranging from $123.45 to $125.50 per share, slightly above the current trading price of $119.31. InvestingPro analysis shows Dell's stock has delivered an impressive 57% return over the past year.
The sales were executed through various entities associated with Silver Lake, including SL SPV-2, L.P., Silver Lake Partners IV, L.P., and Silver Lake Partners V DE (AIV), L.P. These transactions resulted in a substantial reduction in the number of shares held by these entities, with some holdings now reduced to zero. Notably, InvestingPro data reveals that Dell's management has been aggressively buying back shares, demonstrating strong confidence in the company's future. Get access to 12 more exclusive InvestingPro Tips and comprehensive analysis with a subscription.
In addition to these sales, Silver Lake also reported the conversion of Class B Common Stock into Class C Common Stock, although these conversions did not involve any monetary transactions. Silver Lake's ongoing adjustments to its Dell holdings are part of its broader investment strategy. According to Fair Value calculations from InvestingPro, Dell is currently trading near its Fair Value, with analysts setting price targets ranging from $115 to $220.
In other recent news, Dell Technologies has released a series of groundbreaking PC monitors, including the world's first with enhanced IPS Black technology and QD-OLED panel. The company has also unveiled a revamped PC portfolio that integrates artificial intelligence (AI), with devices from Intel (NASDAQ:INTC), AMD (NASDAQ:AMD), and Qualcomm (NASDAQ:QCOM) Technologies. Dell's AI server business has seen rapid expansion and now exceeds $10 billion. Bernstein analysts at SocGen Group have maintained an Outperform rating on Dell's shares, reflecting confidence in the company's operational strengths. Dell recently reported a 10% increase in third-quarter earnings, reaching $24.4 billion, primarily driven by the Infrastructure Solutions Group's focus on AI infrastructure and server solutions. These are the recent developments in Dell Technologies.
In other news, 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, highlighting Memphis's emerging status as a global hub for AI. Furthermore, a Bernstein survey shows an expected increase in IT spending from 6% in 2024 to 7-8% in 2025, with Dell Technologies poised to benefit from this trend. However, the survey also highlighted a weak sentiment towards mainframes.
Lastly, Dell Technologies has declared a quarterly cash dividend of $0.445 per common share, following a 20% increase in the company's annual cash dividend. This move reflects Dell's commitment to delivering shareholder value and its confidence in the company's financial stability and growth prospects. These recent developments provide insight into Dell's strategic moves and financial performance.
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