|Bid||53.13 x 2200|
|Ask||53.52 x 900|
|Day's range||52.92 - 53.69|
|52-week range||25.51 - 59.17|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||9.16|
|Earnings date||27 Aug 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||57.06|
(Bloomberg) -- Global personal computer shipments climbed in the second quarter, when vendors patched supply-chain issues and consumer demand for laptops surged with more people forced to work from home.PC makers shipped 2.8% more devices in the three-month period compared with a year earlier, for a total of 64.8 million units, according to preliminary data released Thursday by researcher Gartner Inc. Rival industry analyst IDC pegged the year-over-year increase at 11%. Both firms said the increase was fueled by particularly strong growth in Europe and the U.S.Major PC makers endured supply chain breakdowns during the first few months of 2020, when the coronavirus pandemic ground some manufacturing to a halt in the Asia-Pacific region, which produces key computer components. Vendors had little stock for some products while also facing stronger demand as billions of people around the world fled their offices to minimize the spread of Covid-19.“The strong demand driven by work-from-home as well as e-learning needs has surpassed previous expectations and has once again put the PC at the center of consumers’ tech portfolio,” Jitesh Ubrani, a research manager at IDC, said in a statement.HP Inc. and China’s Lenovo Group Ltd. each held about 25% of the global market. Gartner put Lenovo barely ahead while IDC had Palo Alto, California-based HP as No. 1 for the quarter. Dell Technologies Inc. and Apple Inc. rounded out the top four on both lists.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Admittedly, trying to understand what goes on inside the mind of Tesla (NASDAQ: TSLA) CEO Elon Musk is probably a fruitless endeavor. There's no denying that he's a visionary; but his thought process can vacillate almost as wildly as Tesla's share price. On Valentine's Day (Feb. 14), a filing with the Securities and Exchange Commission showed that Musk had purchased 13,037 shares of Tesla for an average price of $767.
Dell acquired a majority stake in VMWare when it bought out VMWare's previous owner, EMC Corporation, in 2016. Since Dell was private at that time, many came to regard VMWare stock as a proxy for Dell.
When Dell bought EMC in 2016 for $67 billion it was one of the biggest acquisitions in tech history, and it brought with it a boatload of debt. Since then Dell has been working on ways to mitigate that debt by selling off various pieces of the corporate empire and going public again, but one of its most valuable assets remains VMware, a company that came over as part of the huge EMC deal. The Wall Street Journal reported yesterday that Dell is considering selling part of its stake in VMware.
By Yasin Ebrahim Investing.com – The Nasdaq closed lower for the first time in nine days on Wednesday as rising Covid-19 infections sparked concerns that some U.S. states could be forced to unwind or slow measures to reopen businesses, threatening the pace of the economic recovery.
(Bloomberg) -- Dell Technologies Inc. surged as much as 12% touching a seven-month high on Wednesday following a report that the computer maker was mulling a spinoff of its stake in VMware Inc.While Dell is also said to be considering buying the rest of the company or doing nothing, a spinoff of its 81% stake could finally eliminate a VMware “albatross” that has been causing the stock to trade at a discount, Wedbush analyst Daniel Ives wrote. But it’s unclear if this is “another head fake for investors.”Analysts at Citi saw a spinoff as speeding up the pace of deleveraging. But it isn’t seen as a necessary step since Dell is on a path to reach investment grade status in the next 18-24 months.Morgan Stanley analysts see Dell and VMware as “better together,” and highlighted recent commentary from founder and Chief Executive Officer Michael Dell calling VMware a “crown jewel.” Last night Piper Sandler weighed in on VMware, saying shares could be worth more than $200.VMware rose as much as 8.5% to the highest since Feb. 20.Here’s what else Wall Street is saying:Morgan Stanley, Katy HubertyMorgan Stanley pointed to Dell’s chief financial officer, who said at an investor conference last week that there were no plans to sell the stake given the tax benefits. Also, the CEO called VMware a key element of its plans and a “crown jewel.”“While we are not aware of Dell’s plans nor has Dell confirmed that it is exploring options for its VMware stake, Dell’s recent public comments suggest the most likely path is the one that Dell is on - continuing to focus on share gains, tighter integration across Dell Technologies assets, and de-levering.”Remains equal-weight on Dell.Wedbush, Daniel Ives“The Dell/VMware soap opera has been a multi-year ownership structure/partnership that has been a frustration point for investors since EMC sold its 81% stake to Dell in 2015.”“The Dell ownership structure has been an albatross around the VMware story and ultimately causes the stock to trade at a discount, a dynamic that would be removed if Dell (and its Board) ultimately decided to head down this path.”While Dell could buy the rest of VMware, Wedbush views that as unlikely. “If Dell did not own VMware we believe this would add $15 to $20 per share right out of the gates as we expect a positive knee jerk reaction on this news with investors digesting the reports.”Rates VMware at outperform.Evercore ISI, Amit DaryananiDell has “tremendous” value not currently reflected in its share price. Sum-of-the-parts analysis suggests the computer company may be worth roughly $80 a share.“Our valuation suggests Dell could be worth a significant premium vs its current trading price but some of the factors that could be weighing down the company’s current valuation include 1) high net leverage, 2) concentrated ownership (Michael Dell + Silver Lake), 3) conglomerate discount, and 4) corporate governance (limited voting rights).”Dell’s stake in VMware is worth about $41 billion, while its SecureWorks Corp. ownership is worth $700 million.Rates Dell outperform.Citi, Walter Pritchard, Jim Suva“Dell is likely looking at capitalizing upon the strong market by potentially doing a secondary offering/block disposal with help of underwriters.” A partial disposal of its VMware stake “could further enhance the pace of its de-levering.”A spinoff would bolster VMware’s valuation by erasing the “ownership discount” from “perceived poor corporate governance.” Citi estimates this to be as much as 40% of enterprise value and implies at least a $25 per share benefit to Dell holders. “We think this is the real source of ‘juice’ in a potential chess move with VMW.”A Dell take-out of remaining VMware holders continues to be unlikely as it would go against the company’s commitment to cutting its debt, and would cost as much as $16 billion.Wells Fargo, Aaron Rakers“The positive market reaction to the news is justified and reinforces our belief that a Dell Core value unlock could / would eventually need to take place (barring a material fundamental deterioration, especially as Dell Core de-leverages).”“With the VMware optionality finally on the table, or rather Dell’s propensity to unlock the valuation of Core Dell,” Dell’s price target is raised to $70 from $57. Remains overweight Dell.Stifel, Brad RebackStifel has long expected Dell to buy the rest of VMware that it doesn’t already own.“A spin-out of VMware makes little long-term sense for Michael Dell given the secular headwinds that Dell’s core hardware business faces. Additionally, according to the WSJ article, a tax-free spin of VMware could not be achieved until Sept 2021, about 15 months from now.”Raises VMware to buy from hold and increases price target by $30 to $196, as “the Dell fog is lifting.”(Updates shares throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Dell Technologies Inc is exploring options of a spinoff for its $50 billion stake in VMware Inc to increase its stock value, according to a Wall Street Journal report.
Dell Technologies (NYSE:DELL) stock soared over 15% after the Wall Street Journal reported that the computer technology company is weighing up the options for its 81% stake in VMware (NYSE:VMW), including unloading the stake or buying the company outright.
(Bloomberg Opinion) -- Dell Technologies Inc.’s magical merry-go-round of financial engineering is spinning once again.The corporate computing giant is examining options for its majority stake in software-company VMware Inc. that include a spinoff of the holdings, the Wall Street Journal reported late Tuesday. VMware shares soared roughly 10% on the news in after-market trading, valuing Dell’s 81% stake at around $55 billion. To understand why Dell would contemplate a transaction like this, you only have to look at Dell’s own market value, which despite a rise of its own on the news of the possible spinoff amounted to only about $40 billion. Put another way, Dell isn’t getting full value for either its ownership of VMware or its own computing and data-storage business that took in around $80 billion of revenue in the most recent fiscal year. And it wants to remedy that. But for all of shareholders’ early enthusiasm, a spinoff of the VMware stake would appear to be just a superficial fix for the complexity that’s long weighed on the value of Dell’s various businesses. Dell acquired its stake in VMware through the $67 billion buyout of EMC Corp. in 2016. As part of that transaction, the company created a tracking stock that was meant to mirror the value of VMware, which remained independent and publicly traded. It didn’t work very well. The tracking stock lagged substantially behind the price of VMware shares. Meanwhile, Dell’s massive debt load and complicated capital structure made a traditional IPO process difficult when founder Michael Dell and private-equity firm Silver Lake wanted to try to reintroduce the company to the public markets following a 2013 buyout. So in 2018, Dell decided to simplify things by buying out the tracking stock. A protracted battle ensued with shareholders of the tracking stock — including P. Schoenfeld Asset Management and Carl Icahn — who felt they were being low-balled, but eventually a deal got done. In hindsight, owners of the tracking stock were right to push for more cash and a complicated equity-collar mechanism, seeing as the Class C stock that made up the remainder of the takeover bid hasn’t fared as well on the public market as Dell might have hoped. Which brings us back to the present. If you kept up through that long, winding tale of financial engineering, you might be wondering why Dell went through the process of unraveling the VMware tracking stock if it was just going to recreate the general idea several years later, as this latest spinoff plan would seem to suggest. The exact structure of a spinoff of the VMware stake is unclear and the Journal reports that talks are at a very early stage and may not go anywhere. Potentially, a spinoff would confer more direct ownership of the VMware business to shareholders than the tracking stock previously did, helping to simplify the valuation process. But it’s hard not to shake the feeling that we’ve been here before.An alternative option that Dell is considering is a buyout of the VMware shares it doesn’t already own, the Journal reported. But that would add to its still mammoth debt load and doesn’t really do much on its own to address the fact that Dell shareholders aren’t inclined to give the company credit for the VMware stake it already holds. Ultimately, a buyout of the rest of VMware, followed by a spinoff of the whole thing, makes the most sense but would take a long time and is easier said than done. Recall that Dell initially tried to bring VMware further into the fold as part of the negotiations that ultimately led to the tracking stock deal, but both management and shareholders of the target company balked.Is this latest finessing going to make Dell a better-run company? Doubtful. Is it going to boost the company’s stock price over the long run? Maybe. But if after years and years of financial engineering, you’re still not seeing the kind of equity valuation you want, perhaps its the financial engineering that’s the problem.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Dell Technologies CEO Michael Dell said the divide in access to digital tools poses a “big challenge” as the pandemic has made online activity a central part of everyday life.
In a newly released interview, Dell Technologies CEO Michael Dell said that the reopening of the U.S economy amid the novel coronavirus is going “reasonably well,” but warned that reopening should take into account the greater risk faced by vulnerable populations.
Michael Dell, the founder and CEO of Dell Technologies, told Yahoo Finance on Tuesday that the tech industry has failed to adequately address the lack of diversity in its workforce. “While there's been some progress,” he says. “It's not enough.”
In this episode of Influencers, Yahoo Finance's Editor-in-Chief, Andy Serwer, speaks with Dell Technologies Chairman & CEO, Michael Dell, for a wide-ranging interview covering the lack of diversity in the tech sector, how Dell has transformed to meet the needs of its customers, and how the pandemic will shape the future of technology.
Fueled by increased demand for its notebooks from the current stay-at-home environment, tech giant Dell’s (DELL) Q1 earnings topped expectations, while video conferencing software like (ZM) and Cisco’s (CSCO) WebEx have also seen a dramatic increase due to the COVID-19 pandemic. However, principal analyst of Futurum Research Daniel Newman joined Yahoo Finance to discuss what’s next for Dell and other tech companies as the nation starts to return to work following the pandemic.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
What happened Shares of Dell Technologies (NYSE: DELL) have jumped today, up by 7% as of 12:30 p.m. EDT, after the PC maker announced first-quarter earnings. Demand for PCs remains healthy, as COVID-19 has driven many companies to invest in remote working setups.