Michael S. Dell, CEO, director, and a more than 10% owner of Dell Technologies (DELL), recently sold shares worth $1.22 billion of the personal computer (PC) manufacturer. This is the fourth big Informative Sell transaction of the CEO in September. The founder has sold over $2.3 billion worth of Dell stock in September alone, probably leveraging the current surge in DELL’s share price.
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A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
Dell is an American multinational technology company that manufactures and markets PCs, servers, monitors, computer software, computer and network security solutions, as well as information security services. Dell stock joined the S&P 500 index last week amid growing interest in AI (artificial intelligence)-related companies.
A Closer Look at the Insider’s Transactions
As per Form 4 filed with the SEC on September 30, the CEO sold 10 million DELL shares on September 26, at a weighted average price of $122.4 apiece. It is worth noting that even after the latest Informative Sell transaction, the CEO still owns 16,912,241 DELL shares directly and another 1,380,000 shares indirectly held by his wife, all worth $3.40 billion.
DELL stock currently has a Very Negative Insider Confidence Signal on TipRanks, based on Informative Sell transactions worth $4.2 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.
Is DELL Stock Good to Buy?
Wall Street remains highly optimistic about Dell stock’s trajectory. On TipRanks, DELL stock commands a Strong Buy consensus rating based on 15 Buys versus three Hold ratings. Also, the average Dell Technologies price target of $144.59 implies a nearly 22% upside potential from current levels. Meanwhile, DELL shares have gained 56.8% so far this year.
