And yet, if you were a Dell shareholder to start the month, you would actually be around breakeven since the start of November. That's because the drop in Dell's stock price wasn't the result of its value falling, but rather the spinoff of its 81% stake in VMware (NYSE: VMW) to shareholders. © Getty Images Young adults react to an open laptop.
Full Answer
What happened to Dell shareholders after the spinoff?
As Dell explained in a press release Friday, each Dell shareholder today still owns the shares of Dell they owned before the spinoff -- albeit at a drastically lower stock price. In addition, each shareholder has been issued 0.44 share of VMware common stock, per each one share of Dell they own, as a special dividend.
Why should you buy Dell Technologies stock at all-time highs?
Dell Technologies stock has been trading at all-time highs this month at over $76 per share as its PC business skyrockets with solid sales growth and innovation slated for 2021 despite the global COVID-19 pandemic.
Is Dell the best computer stock to buy in 2021?
Jim Suva, Citi’s IT hardware analyst, named Dell his top stock for this year and added Dell to the company’s ‘U.S. Focus List.’ He said there’s near-term PC growth opportunities for Dell with a likely boost in enterprise demand in the second half of 2021.
Why did DELL stock go down?
Dell Technologies (DELL) - Get Dell Technologies Inc Class C Report shares moved lower Friday after analysts at Goldman Sachs lowered their rating and price target on the PC maker, citing weakness in key markets and broader inflation pressures.
Will DELL stock go back up?
According to its forecast, as of 11 March 2022, the Dell stock price could reach $16.241 at the end of 2022, $0.000000946 in 2023 and to 0.000001 by the close of 2024 and until February 2025. Wallet Investor is bearish on the Dell stock value, but provides no Dell stock predictions for 2025 to 2030.
What happened to DELL in November?
Shares of Dell Technologies (NYSE: DELL) fell 48.7% in November, according to data from S&P Global Market Intelligence. And yet, if you were a Dell shareholder to start the month, you would actually be around breakeven since the start of November.
What happened to DELL stock Nov 2021?
Shares of Dell Technologies (DELL -0.51%) fell 48.7% in November, according to data from S&P Global Market Intelligence.
Is Dell a buy right now?
Dell Technologies has received a consensus rating of Buy. The company's average rating score is 2.62, and is based on 8 buy ratings, 5 hold ratings, and no sell ratings.
Is Dell a good buy now?
We rate shares of DELL as a hold with a year ahead price target of $50.00 representing a forward P/E of 7.5x on the recurrent consensus fiscal 2023 EPS. Our neutral view on the stock balances the strong balance sheet and recent financials against the softer growth outlook.
Is DELL in financial trouble?
Paying Down Debt In fiscal year 2021, Dell paid down $5.5 billion in core debt. The company said last week it plans to pay down at least another $5 billion this year. As of February, Dell's core debt stands at around $29 billion.
Is DELL losing money?
(RTTNews) - Tech company Dell Technologies Inc. (DELL), reported a loss in the fourth quarter despite an increase in revenue. The net loss was $29 million or $0.04 loss per share for the fourth quarter, compared to a net income of $695 million or $0.90 earnings per share in the same quarter last year.
Is DELL going to pay a dividend?
ROUND ROCK, Texas , Oct. 19, 2021 /PRNewswire/ -- The Dell Technologies (NYSE: DELL ) board of directors has approved distribution of a special stock dividend to Dell Technologies stockholders of all its shares of Class A and Class B common stock of VMware, Inc.
What do DELL shareholders get from VMware spin off?
VMware has also distributed a special cash dividend of $11.5 billion to all VMware shareholders, including Dell Technologies, which has received $9.3 billion and will use the funds to pay down debt.
Why is VMware spinning off from DELL?
The spin-off from Dell Technologies provides VMware increased freedom to execute its multi-cloud strategy, a simplified capital structure and governance model, and additional operational and financial flexibility.
Did DELL stock split?
DELL Stock Price DELL stock came public in 2018 at a price of $46 per share (the company has since split its stock in half once in 2021), which equates to a price of $23 in present day.
What happened
Shares of Dell Technologies ( DELL -0.32% ) fell 48.7% in November, according to data from S&P Global Market Intelligence.
So what
On Nov. 1, Dell spun off its 81% stake in VMware to shareholders. Anyone holding Dell at that time received 0.440626 shares of VMware per share of Dell. Even though VMware's stock has dropped since the spinoff amid a rout in the software sector, at today's VMware share price of $115.58, that would still equate to $50.92 in value.
Now what
So, the "drop" in Dell's stock is nothing to worry about -- quite the contrary. And even after its strong November performance, the "remaining" core Dell business only trades at 6.75 times next year's earnings estimates, making it a deep value stock even after its good month.
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What happened
Shares of Dell Technologies (NYSE: DELL) fell 48.7% in November, according to data from S&P Global Market Intelligence.
So what
On Nov. 1, Dell spun off its 81% stake in VMware to shareholders. Anyone holding Dell at that time received 0.440626 shares of VMware per share of Dell. Even though VMware's stock has dropped since the spinoff amid a rout in the software sector, at today's VMware share price of $115.58, that would still equate to $50.92 in value.
Now what
So, the "drop" in Dell's stock is nothing to worry about -- quite the contrary. And even after its strong November performance, the "remaining" core Dell business only trades at 6.75 times next year's earnings estimates, making it a deep value stock even after its good month.
VMware completes spin-off from parent company Dell
Cloud technology company VMware Inc. (NYSE:VMW) has officially completed a spin-off from its parent company, Dell, which formerly owned 81 percent of the subsidiary. The two entities will remain part of a strategic partnership, but the new arrangement will increase VMware's operational and financial flexibility.
Dell stock splits to smooth shareholder assets after spin-off
Dell performed an approximately 2:1 stock split on Nov. 2. The number of outstanding shares doubled while the price per share was cut in half. That's why the Nov. 1 closing price of $111.51 per share hit $55.12 by mid-morning the following day.
Dell has a public-to-private history among numerous stock splits
Dell first split its stock in 1992 at a 3:2 ratio. By the end of the decade, the company had completed six more stock splits, each of which was a 2:1 split.
How much is Dell spending in 2021?
Dell’s consensus revenue estimate for its first fiscal quarter 2022, which runs from February to April 2021, is nearly $22.23 billion, which represents roughly 7 percent growth year over year.
How much is Dell's operating income in 2021?
During Dell’s most recent third fiscal quarter 2021, the company’s Client Solutions Group -- which includes Dell PCs, notebooks and tablets – reached an all-time high of $12.3 billion, up 8 percent year over year, with operating income of $1 billion.
How many Dell computers will be shipped in 2020?
In 2020, Dell shipped 50.3 million PCs across the globe, up from 46.5 million in 2019, according to research firm IDC.
Does Dell own VMware?
Dell owns an 81 percent majority stake in VMware, the world’s dominant virtualization leader and rising hybrid cloud software standout. Dell will likely spin off its stake in VMware to Dell Technologies and VMware shareholders later this year in a move that will boost both companies, said Dell CEO and VMware Chairman Michael Dell in an interview with CRN last year.
Is Dell a stable company?
Dell’s business has been stable throughout the pandemic which has forced many enterprises to pause on large IT hardware spending. Dell is the leader in IT hardware, selling more servers, storage and hyperconverged infrastructure than any other company in the world.
Is Dell a hybrid cloud?
With more business seeking cloud-like IT solutions, Dell is doubling down investments around consumption-based, as-a-service offerings with its new Project Apex as well as its flagship hybrid cloud product the Dell Technologies Cloud.
Will Dell spin off VMware?
If all goes as planned, Dell will not spin off its shares of VMware before September 2021 for tax reasons. Dell is seeking to get it to qualify as tax-free for federal income tax purposes.
