Silver Lake Group sells $54.3 million in Dell Technologies stock Via Investing.com
Silver Lake Group, LLC, a popular private company, reported a significant split in the shares of Dell Technologies Inc. (NYSE: ), totaling $54.3 million. The transaction, disclosed in a recent SEC filing, took place on December 5, 2024. The sale comes as Dell, now valued at $86.7 billion, has delivered an impressive 83% return over the past year.
The sale involved multiple classes of Class C common stock, at prices ranging from $125.68 to $127.26 per share. Shares were sold through various entities associated with Silver Lake, including SL SPV-2, LP, Silver Lake Partners IV, LP, and Silver Lake Partners V DE (AIV), LP According to InvestingPro, analysts are keeping prices ranging from -$115 $220 shares of Dell.
After the purchase, Silver Lake continues to hold a large number of Dell shares through subsidiaries. The move comes amid a broader strategy that involves converting Class B common stock into Class C shares, a process that was part of a stock distribution on December 9, 2024.
Egon Durban, a director at Dell Technologies, is associated with Silver Lake and its subsidiaries. The transaction is conducted under indirect ownership, with Silver Lake maintaining its strategic interest in Dell Technologies through various investment vehicles.
In other recent news, Dell Technologies has seen significant improvement in its financial performance. The company reported a 10% increase in revenue in the third quarter, to $24.4 billion, driven primarily by the Infrastructure Solutions Group’s focus on AI infrastructure and server solutions. Dell’s earnings per share rose to $2.15, marking a 14% year-over-year increase. The company also announced a quarterly dividend of $0.445 per share after a 20% increase in annual dividends.
In terms of equity, Dell disclosed the issuance of 25 million Class C common shares in exchange for an equal number of Class A common shares by CEO Michael Dell. This action is part of the company’s internal framework.
On the analyst front, TD Cowen maintained its hold rating on Dell, citing underperformance in the PC segment and slowing revenue from AI systems. However, Mizuho (NYSE:) Securities, Goldman Sachs, and Citi maintained positive ratings on Dell, adjusting their ratings accordingly.
In AI-related news, xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding more than a million Graphics Processing Units (GPUs). The move represents the largest investment ever in the Memphis region. Fortune 500 companies Nvidia (NASDAQ:), Dell, and Supermicro Computer are also set to establish operations in the city, cementing its growing status as a global center for artificial intelligence.
These are the latest developments that investors should consider when looking at Dell Technologies.
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