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Silver Lake, a global leader in technology investing, has made significant transactions involving shares of Dell Technologies Inc. (NYSE:). Through its various entities, Silver Lake sold $2,072,156 in total value of Dell Class C common stock at an average price of $106.95 per share. These sales occurred on March 18, 2024 and were disclosed in a recent filing.
Entities involved in the transactions include SLTA V (GP), LLC, Silver Lake Technology Associates V, LP, Silver Lake Partners V DE (AIV), LP and Silver Lake Technology Investors V, LP. These entities are associated with Silver Lake Investment facilities and are connected through a network of general and limited partnerships.
The sales were executed in a series of multiple transactions, with prices ranging from $106.90 to $107.0865. The document also noted that the shares were held indirectly through various partnerships with Silver Lake, indicating a complex ownership structure.
Specifically, the transactions included the conversion of Class B common stock into Class C common stock, which were then sold. Class B common stock is known for its convertibility feature, which allows holders to convert it into an equal number of Class C common stock at any time.
The statement was submitted jointly by the reporting persons and was signed by Andrew J. Schader, CEO and general counsel of Silver Lake Group, LLC. It has also been clarified that the statement does not treat reporting persons as beneficial owners of all securities covered by filing for purposes of Section 16 of the Exchange Act, except to the extent of their pecuniary interest.
Investors and market observers often scrutinize such documents to gain insight into the strategies and levels of confidence of key stakeholders in key technology companies like Dell Technologies. The transactions disclosed by the Silver Lake entities offer a glimpse into the investment moves of one of the tech industry’s most influential players.
Insights on InvestingPro
As Silver Lake adjusts its holdings in Dell Technologies Inc. (NYSE:DELL), investors can also consider the company’s current financial health and market performance for a broader investment perspective. According to real-time data from InvestingPro, Dell has a substantial market capitalization of $78.45 billion, reflecting its significant presence in the technology sector. The company’s P/E ratio stands at 25.08, with a more attractive adjusted P/E ratio of 23.65 for the trailing twelve months as of Q4 2024, indicating a potentially undervalued stock relative to earnings growth short term.
Dell’s revenue for the trailing twelve months as of the fourth quarter of 2024 totaled $88.42 billion, despite a revenue decline of 13.56% during the same period. This suggests that although Dell is generating considerable revenue, it has faced challenges that have affected its revenue growth. The company’s gross profit margin remains healthy at 23.6%, demonstrating its ability to maintain profitability despite revenue fluctuations.
InvestingPro’s recommendations for Dell highlight several key points investors should consider. In particular, management’s aggressive stock buyback strategy could signal confidence in the company’s future, as stock buybacks often aim to increase shareholder value. Additionally, Dell is recognized for its high shareholder returns and its position as a leading player in the technology hardware, storage and peripherals industry. While some analysts have revised down their earnings expectations for the coming period, the company is still expected to be profitable this year, with a history of profitability over the past twelve months.
For investors seeking a comprehensive analysis of Dell Technologies and additional insights, InvestingPro offers a suite of advanced tools and metrics. With 13 more InvestingPro Tips available for Dell, investors can deepen their understanding of the company’s financials and market performance. To access these insights, consider signing up to InvestingPro using the coupon code PRONEWS24 to receive an additional 10% discount on the annual or biennial Pro and Pro+ subscription.
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