Silver Lake entities and Egon Durban, a director at Dell Technologies Inc. (NYSE:DELL), have sold a significant portion of their holdings in the company. The transactions, which took place on June 20, 2024, involved the sale of Dell Technologies Inc. Class C Common Stock amounting to over $37 million.
The sales were executed at varying prices, with a weighted average price range between $150.45 and $152.54 per share. Specifically, the reported sale transactions ranged from $149.97 to $152.96 per share, indicating a strategic approach to the disposal of shares in multiple transactions.
In addition to the sales, there were transactions involving the conversion of Class B Common Stock into Class C Common Stock, which were related to the sales and distributions described. It is important to note that the receipt of shares of Class C Common Stock by each of the reporting persons was exempt from reporting pursuant to Rule 16a-13 of the Exchange Act.
The entities involved in these transactions include SL SPV-2, L.P., Silver Lake Partners IV, L.P., and Silver Lake Partners V DE (AIV), L.P., among others. These entities are part of the Silver Lake group, a global leader in technology investing, and are associated with Egon Durban, who is recognized as a Co-CEO and Managing Member of Silver Lake Group, L.L.C.
The reported transactions highlight significant activity by major stakeholders in Dell Technologies Inc., which may be of interest to investors and market analysts. However, the filings do not necessarily provide insight into the strategic considerations behind these sales. Investors typically monitor such transactions by insiders and large shareholders as they can provide indications of their confidence in the company's future prospects.
The sale of shares by entities associated with Silver Lake and Egon Durban represents a noteworthy adjustment in their investment in Dell Technologies Inc., although the long-term implications for the company and its stock remain to be seen.
In other recent news, Nvidia Corporation (NASDAQ:NVDA) has received significant server orders from Elon Musk's artificial intelligence startup, a development expected to bolster the company's market capitalization. Dell Technologies and Super Micro Computer (NASDAQ:SMCI) are supplying server racks for Musk's company xAI's supercomputer, which is set to advance the capabilities of the AI tool Grok. Musk previously revealed that training future iterations of Grok would require up to 100,000 Nvidia H100 graphic processing units.
Simultaneously, Dell Technologies is partnering with Nvidia to create an "AI factory" to support the development of Grok's next iteration. The partnership highlights the intensive computational requirements for training sophisticated AI models. xAI aims to have the supercomputer operational by fall 2025.
On the analyst front, BofA Securities maintained a Buy rating on Dell Technologies Inc, citing the company's potential to capitalize on the growing demand for Enterprise Artificial Intelligence. Evercore ISI also maintained an Outperform rating on Dell, despite a recent downturn in the company's storage business margins. Meanwhile, Citi reiterated its Buy rating on Dell, expressing confidence in Dell's prospects in the artificial intelligence sector.
InvestingPro Insights
Amid the significant transactions by Silver Lake entities and Egon Durban, investors may be eyeing Dell Technologies Inc. (NYSE:DELL) for potential indicators of the company's financial health and future performance. As of the last twelve months as of Q1 2025, Dell Technologies boasts a market capitalization of $98.02 billion, reflecting its substantial presence in the market.
From an investment standpoint, Dell Technologies is currently trading at a P/E ratio of 27.8, which is lower when adjusted for near-term earnings growth to 23.32. This could suggest that the stock is undervalued relative to its earnings trajectory, potentially offering an attractive entry point for value investors. Moreover, the company's PEG ratio, which stands at 0.32, underscores a favorable relationship between its price and expected earnings growth, further solidifying its appeal to those looking for growth at a reasonable price.
One of the InvestingPro Tips highlights Dell's high shareholder yield, which is a positive sign for investors seeking returns through dividends and share repurchases. Additionally, another tip points out that analysts predict the company will be profitable this year, aligning with the reported profitability over the last twelve months.
For investors interested in exploring more detailed analysis and additional tips, there are 11 more InvestingPro Tips available for Dell Technologies at https://www.investing.com/pro/DELL. These tips could provide deeper insights into the company's financials and market position. To access these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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