Several Silver Lake entities have recently sold a substantial amount of Dell Technologies Inc. (NYSE:DELL) stock, according to the latest filings with the Securities and Exchange Commission. The transactions, which occurred on June 17th and 18th, involved the sale of Dell's Class C Common Stock at varying prices, contributing to a total sale value of over $183 million.
The sales were conducted at prices ranging from $142.50 to $151.00 per share. On June 17th, a batch of shares was sold at prices between $141.96 and $142.94, while another set was sold at prices from $142.96 to $143.52. The following day, shares were sold in multiple transactions with prices ranging from $148.64 to $151.59.
The entities involved in these sales include SLTA V (GP), L.L.C., Silver Lake Technology Associates V, L.P., Silver Lake Partners V DE (AIV), L.P., and Silver Lake Technology Investors V, L.P. These entities are connected through a complex structure of partnerships and are associated with Silver Lake, a global leader in technology investing.
While the filings provide detailed data on the number of shares sold and the prices obtained, they do not disclose the specific reasons behind the sales. However, such transactions are not uncommon for investment firms managing large portfolios, as they regularly rebalance and adjust their holdings based on strategic investment decisions.
Investors and market watchers often pay close attention to the buying and selling activities of major investment firms like Silver Lake, as they can provide insights into the firms' outlook on the companies in their portfolios. Dell Technologies, a leading player in the electronic computers sector, remains a significant investment for many institutional investors and funds.
The SEC filings also mention the conversion of Class B Common Stock into an equal number of shares of Class C Common Stock, which took place in connection with the distributions and sales described. However, the receipt of shares of Class C Common Stock by each of the reporting entities was exempt from reporting pursuant to Rule 16a-13 of the Exchange Act.
The reporting persons have filed this Form 4 jointly and have disclaimed beneficial ownership of the securities covered by this filing, except to the extent of their pecuniary interest therein. The filings also note that because of limitations on the number of reporting persons and transactions that can be listed on each Form 4, additional transactions have been reported on separate filings.
Investors interested in the latest activities of Silver Lake and its impact on Dell Technologies can access the full details of the transactions through the SEC's EDGAR database.
In other recent news, Nvidia Corporation (NASDAQ:NVDA) has received significant server orders from Elon Musk's AI startup, a move expected to augment the company's market capitalization. Dell Technologies and Super Micro Computer (NASDAQ:SMCI), partners in this venture, are supplying server racks equipped with Nvidia's chips for Musk's company xAI's supercomputer. The supercomputer's task is to advance the capabilities of the AI tool Grok, which according to Musk, will require a substantial number of Nvidia H100 graphic processing units.
Dell Technologies is also in the spotlight due to its collaboration with Nvidia to create an "AI factory," aimed at supporting the development of Grok's next iteration. In recent developments, Dell has partnered with Musk's AI startup, xAI, for a supercomputer project, expected to be operational by fall 2025.
On the analyst front, BofA Securities maintained a 'Buy' rating on Dell Technologies, citing the company's potential to capitalize on the growing demand for Enterprise AI. This follows a series of investor meetings in New York City with Dell's CEO Michael Dell and CFO Yvonne McGill. Similarly, Evercore ISI reiterated an 'Outperform' rating on Dell's shares, pointing to increased server revenues related to artificial intelligence (AI) and signs of recovery in the PC market.
Lastly, Citi maintained its bullish stance on Dell, citing the company's potential in the artificial intelligence (AI) sector. Dell's management expressed optimism about its AI market share and anticipates a return to targeted profit margins of 11-14% due to increased revenue from seasonal storage demand.
InvestingPro Insights
As Silver Lake entities liquidate a portion of their holdings in Dell Technologies Inc. (NYSE:DELL), market participants might be interested in the current financial health and performance metrics of the company. Dell has shown a significant return over the last week, with a 1 Week Price Total Return of 10.47%, and a robust 1 Year Price Total Return of 208.74%. These figures suggest a strong short-term bullish momentum for the stock, which may have influenced Silver Lake's decision to sell at this time.
On the fundamental side, Dell is trading at a P/E Ratio of 29.54, which has adjusted to 25.19 over the last twelve months as of Q1 2025. The company's PEG Ratio during the same period is 0.34, indicating that the stock may be trading at a low price relative to near-term earnings growth, an aspect that value-oriented investors might find appealing.
Among the key InvestingPro Tips for Dell, the company is recognized as a prominent player in the Technology Hardware, Storage & Peripherals industry and is predicted to be profitable this year. Additionally, there are 12 more tips available on InvestingPro that could provide deeper insights into Dell's financial position and market performance. For readers looking to explore these tips and make more informed investment decisions, they can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
These data points and tips might offer a broader context for understanding the recent sales by Silver Lake and can help investors gauge whether the current stock price reflects Dell's underlying value and growth prospects.
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