In a recent transaction, a group of Silver Lake entities, known as significant investors in Dell Technologies Inc. (NYSE:DELL), have sold a substantial amount of the company's stock. The entities, which include Silver Lake Technology Associates and their affiliates, collectively disposed of Dell Technologies shares valued at over $37 million.
The sales occurred on June 20, 2024, with the price per share ranging from $150.45 to $152.54. These transactions represent a significant move by the investment firms, which have been known for their involvement in technology-focused private equity deals.
Silver Lake's entities, which hold positions as directors and are ten percent owners of Dell Technologies, engaged in multiple transactions at varying prices within the specified range. The exact number of shares sold at each price point within this range can be provided upon request to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission.
The shares sold were Class C Common Stock of Dell Technologies, a company specializing in electronic computers and known for its significant presence in the technology sector. This move by Silver Lake entities could be of interest to investors monitoring the actions of significant shareholders in major tech companies.
It is worth noting that these sales are part of a larger financial maneuver, as the entities also initiated in-kind distributions of shares of Class C Common Stock, which are reported separately. Additionally, certain Silver Lake entities converted shares of Class B Common Stock into an equal number of shares of Class C Common Stock in connection with these distributions and sales.
Investors and interested parties can expect further details and context to emerge as Silver Lake and Dell Technologies continue to disclose their financial activities in compliance with SEC regulations.
In other recent news, Nvidia Corporation (NASDAQ:NVDA) has seen a surge in server orders from Elon Musk's artificial intelligence startup, xAI, leading to an increase in its market capitalization. Dell Technologies and Super Micro Computer (NASDAQ:SMCI), partners of Nvidia, are supplying server racks for xAI's supercomputer, which will be used to advance the AI tool Grok. According to Musk, training the Grok 2 model required approximately 20,000 Nvidia H100 graphic processing units, and future iterations may need up to 100,000 of these chips.
In related news, Dell Technologies is collaborating with Nvidia to create an "AI factory" to support the development of Grok's next iteration. BofA Securities maintained a Buy rating on Dell's stock due to its potential to capitalize on the growing demand for Enterprise AI. The firm believes Dell's global reach, comprehensive support services, and Dell Financial Services are competitive advantages.
Evercore ISI also maintained an Outperform rating on Dell's shares, citing potential improvements in the company's storage margins by fiscal year 2025. Citi reiterated its Buy rating on Dell's stock with a steady price target of $170.00, expressing confidence in Dell's prospects in the artificial intelligence sector. These recent developments highlight the growing influence of AI technology in shaping the future strategies of leading tech companies.
InvestingPro Insights
As Silver Lake entities divest from Dell Technologies Inc. (NYSE:DELL), investors are keen to understand the company's current financial health and market position. According to the latest data from InvestingPro, Dell Technologies boasts a substantial market capitalization of 98.02 billion USD, reflecting its significant presence in the technology sector.
Despite a recent decline in revenue growth, with a -7.58% change over the last twelve months as of Q1 2025, the company has managed to maintain a healthy gross profit margin of 23.12%. This suggests that Dell Technologies is still effectively controlling its cost of goods sold and maintaining profitability. Additionally, the firm's P/E ratio stands at 23.32, which, when coupled with a PEG ratio of 0.32 for the same period, indicates that the stock may be trading at a low price relative to its near-term earnings growth potential.
InvestingPro Tips highlight that Dell Technologies is a prominent player in the Technology Hardware, Storage & Peripherals industry and has been profitable over the last twelve months. Moreover, analysts predict the company will remain profitable this year. For investors looking for more detailed analysis, there are additional tips available on InvestingPro, including insights into Dell's shareholder yield and its performance over various time frames. To explore these further, visit https://www.investing.com/pro/DELL and make use of the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Considering the strong return over the last three months, with a 29.74% price total return, and a remarkable 191.18% return over the past year, Dell Technologies has demonstrated its ability to reward investors handsomely. With 11 more InvestingPro Tips available, investors can gain a comprehensive understanding of the company's financial trajectory and market strategy.
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