Dell's founder and CEO Michael Dell sells $1.2 billion in stock, but analysts remain bullish.

From Nasdaq: 2024-10-03 09:09:00

Dell Technologies founder and CEO Michael Dell disclosed a massive share sale, unloading 10 million shares for $1.22 billion in September. Despite the stock being up 57% on the year, Dell’s sales have amounted to 23 million shares in 2024 at slightly lower prices. Analysts do not believe Dell’s stock is overvalued, with an average price target of $146.

Investors may be concerned about possible risks that Michael Dell sees that analysts don’t. However, Dell has expressed optimism about the AI infrastructure buildout, stating that it is still in its early stages. The rapid growth in Dell’s AI servers, with 23% sequential growth to $3.2 billion, indicates strong potential in this sector.

Possible reasons for Michael Dell’s share sales include personal or tax reasons, as capital gains tax rates may increase next year. Other notable figures, such as Warren Buffett, have also sold large portions of their stock holdings due to potential tax increases. Michael Dell remains a long-term shareholder, owning a significant number of shares despite selling 7% of his holdings this year.

Despite the significant share sales by Michael Dell, investors should not worry too much given the company’s strong performance and potential tax changes. Dell’s founder remains a long-term enthusiastic shareholder, and the company’s growth prospects in the AI sector are promising. Analysts remain bullish on Dell’s stock, with a majority recommending it as a “Buy” with price targets ranging from $106 to $220.



Read more at Nasdaq: Dell’s Founder and CEO Unloads $1.2 Billion in Stock: Should Investors Worry?