ROUND ROCK, TX – Dell Technologies Inc. (NYSE:DELL) announced the results of its annual stockholders' meeting, held on June 27, 2024, where several key decisions were made by the company's shareholders. The information, based on a recent SEC filing, details the outcome of votes on various proposals, including the election of board members and the appointment of the company's independent auditor.
At the meeting, shareholders voted to re-elect all seven Group I director nominees, including Michael S. Dell, with over 4.1 billion votes in favor and approximately 68.7 million withheld. Ellen J. Kullman, the nominee for Group IV director, received over 136 million votes in favor. The re-elected directors will serve until their successors are elected and qualified or until their earlier death, resignation, disqualification, or removal.
In addition, the appointment of PricewaterhouseCoopers LLP as Dell's independent registered public accounting firm for the fiscal year ending January 31, 2025, was ratified with a significant majority of over 4.2 billion votes for and around 20.4 million against.
Shareholders also approved, by an advisory vote, the compensation of the company's named executive officers as disclosed in the proxy statement, with over 4.2 billion votes in favor. However, two shareholder proposals failed to pass. The first, which sought to require Dell to list recipients of material donations on its website, received only around 7.4 million votes for and over 4.2 billion votes against. The second proposal, asking for a report on the effectiveness of Dell's diversity, equity, and inclusion efforts, garnered about 123.5 million votes for and 4.1 billion votes against.
In other recent news, the Equipment Leasing and Finance Association reported an 11% year-over-year increase in U.S. business equipment borrowings for May, although this was a 7% decrease from April. This reflects a cautious approach by businesses, possibly awaiting lower interest rates before committing to new equipment acquisitions.
On another front, Dell Technologies and Nvidia (NASDAQ:NVDA) received server orders from Elon Musk's AI startup, which is expected to bolster Nvidia's market capitalization. Dell is also partnering with xAI for a supercomputer project, with the supercomputer expected to be operational by fall 2025.
Analyst firms BofA Securities and Evercore ISI have maintained positive ratings on Dell stock, highlighting strong AI growth potential and the potential improvement in Dell's storage margins by fiscal year 2025. These developments underscore Dell's active role in the AI sector and the growing demand for AI applications.
InvestingPro Insights
In light of Dell Technologies Inc.'s recent shareholder meeting, insights from InvestingPro reveal additional layers of the company's financial health and market performance that investors may find valuable. Dell's management has been actively buying back shares, indicative of their confidence in the company's value and future prospects. Additionally, Dell's strong shareholder yield reflects a commitment to returning value to its investors.
From a valuation standpoint, Dell is trading at a low P/E ratio relative to near-term earnings growth, suggesting the stock may be undervalued compared to its growth potential. This is supported by a P/E ratio of 28.45 and an adjusted P/E ratio of 24.32 for the last twelve months as of Q1 2025. Moreover, the company has demonstrated a high return over the last year, with a one-year price total return of 169.52%, which is particularly impressive.
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