Dell Technologies Inc

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Dell Technologies Inc. (NYSE: DELL) is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates in two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). 

Kalkine’s Dividend Income Report covers the Company Overview, Key positives & negatives, Investment summary, Key investment metrics, Top 10 shareholding, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Price Performance:

• DELL's share price has corrected by 19.09% in the past three months. Simultaneously, in the long term, the stock has corrected by 3.05% over the past six months.

• The stock is leaning towards the lower band of its 52-week range of USD 179.70 and 52-week low price of USD 63.90, with the current price inside an important support area of USD 100- USD 110, therefore an expectation of upward movement if the levels sustain.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 44.98, upward trending and recovering from oversold zone, with expectations of upward movement.

1.2 The Key Positives, Negatives, and Investment summary  

1.3 Top 10 shareholders:

The top 10 shareholders together form ~33.76% of the total shareholding, signifying concentrated shareholding. The Vanguard Group, Inc., and Dell (Michael S), are the biggest shareholders, holding the maximum stake in the company at ~5.68% and ~5.53%, respectively.

1.4 Dividend payments with impressive dividend yield:

Dell Technologies announced that its board of directors has declared a quarterly cash dividend of USD 0.445 per common share, payable on August 2, 2024, to shareholders of record as of July 23, 2024. This follows the company's decision earlier in the year to increase its annual dividend by 20% to USD 1.78 per common share, reflecting a strong commitment to returning value to shareholders. The dividend increament highlights Dell’s solid financial performance and strategic focus on delivering shareholder value through consistent payouts, backed by its robust revenue growth and profitability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

The below picture gives an overview of the recent updates:

2.2 Insights of Q2FY24:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Technical Summary:

 Price Performance:

• DELL's share price has corrected by 19.09% in the past three months. Simultaneously, in the long term, the stock has corrected by 3.05% over the past six months.

• The stock is leaning towards the lower band of its 52-week range of USD 179.70 and 52-week low price of USD 63.90, with the current price inside an important support area of USD 100- USD 110, therefore an expectation of upward movement if the levels sustain.
• The price is currently below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of 44.98, upward trending and recovering from oversold zone, with expectations of upward movement.

4.2 Fundamental Valuation

Valuation Methodology: Price/Earnings Per Share Multiple Based Relative Valuation

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 11, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.