Dell Stock Brushes Off Earnings Beat

Analysts and options traders are chiming in after the event

Deputy Editor
Aug 27, 2021 at 10:11 AM
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Dell Technologies Inc (NYSE:DELL) stock is down 4.6% to trade at $96.81 this morning, despite a strong quarterly report. The computer giant reported second-quarter earnings of $2.24 per share, beating analyst estimates of $2.03 per share, as well as higher-than-anticipated revenue. Personal computer sales gave the company a boost, and it's noteworthy that sector peer HP Inc (HPQ) reported a fiscal third-quarter revenue miss due to the supply chain shortage, while Dell dealt with it more successfully.  

To follow, no fewer than four analysts raised their price targets on DELL, including Morgan Stanley to $133 from $130, while Raymond James slashed its price objective to $115 from $118. No analysts have adjusted their ratings, and coming into today, 10 of the 12 in coverage carried a "buy" or better rating, with the remaining two at a lukewarm "hold."

On the charts, the $104 level -- home to DELL's June 10 record high of $104.62 -- has kept a lid on the shares this year. However, the 120-day moving average, which the equity has only closed below twice in 2021, has helped contain recent pullbacks. Year-over-year, the security is up roughly 62%. 

Options traders have been quick to the draw this morning, with 1,986 calls and 1,689 puts across the tape so far -- eight times what's typically at this point. The September 97.50 put is the most popular, followed by the December 120 call, with new positions being opened at the latter. 


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