Michael S Dell, CEO, director, and a more-than-10% owner of Dell Technologies Inc. (NYSE:DELL), is on a selling spree. This time around, the CEO sold DELL shares worth a massive $761.35 million. A corporate insider’s share sale usually signals caution about the company’s future potential. Having said that, an insider could be selling shares for other reasons, such as financial or personal obligations.
Dell Technologies is an American multinational tech company and one of the largest manufacturers of personal computers (PCs). It offers hardware and software products and services. This is the CEO’s second big share sale in the past five days. Year-to-date, DELL shares have zoomed over 80%. The CEO could be selling shares to benefit from the ongoing rally in Dell stock.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on June 13, The CEO undertook multiple sales of 5,681,929 DELL shares between June 11 to 13, at weighted average prices ranging between $130.85 and $135.96 apiece. It is worth noting that even after the latest Informative Sell transactions, Michael Dell still owns 24.63 million Dell shares worth $3.25 billion.
Dell Technologies stock currently has a Very Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $1.5 billion undertaken in the last three months.
It is important to keep an eye on the Informative trades of corporate insiders, given their knowledge of a company’s growth potential. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
What is the Future of Dell Stock?
Despite the slowdown in PC demand last year, Dell’s laptops and other products have gained traction, backed by the solid AI (artificial intelligence) boom. Wall Street remains highly optimistic about Dell stock’s future trajectory.
On TipRanks, DELL stock commands a Strong Buy consensus rating based on 11 Buys, one Hold, and one Sell rating. The average Dell Technologies price target of $157.15 implies 16.4% upside potential from current levels.
