Dell Technologies Stock Draws Bull Notes on Earnings Beat

Year-to-date, DELL is already up more than 53%

Digital Content Manager
Nov 24, 2021 at 10:55 AM
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The shares of Dell Technologies Inc (NYSE:DELL) are up 4.5% to trade at $57.08 at last check, after the tech concern beat Wall Street's third-quarter earnings and revenue estimates. The company cited higher demand for its personal computers and servers as companies move towards a hybrid work model, and also raised its current-quarter forecast.

In response, BofA Global Research and Morgan Stanley raised DELL's price target to $68 from $66 and $67, respectively. Plus. J.P. Morgan Securities raised its objective to $75 from $72. What makes this noteworthy is that analysts were optimistic towards the stock already, with nine of 11 in question calling it a "buy" or better. Plus, the 12-month consensus target price of $75.72 is a 32.8% premium to current levels.

A short squeeze could push the security even higher. Short interest is up a whopping 48.1% in the last two reporting periods, and the 15.34 million shares sold short make up 5.4% of the DELL's available float, or nearly one week's worth of pent-up buying power.

Digging deeper, Dell Technologies stock is fresh off an Oct. 25, all-time high of $58.16. Today's pop is running into resistance from the $57.50 level, which has been keeping a tight lid on the shares since that record peak, though the 50-day moving average is still providing a floor. Year-to-date, DELL has added 53.2%.

The options pits are firmly bullish. This is per the security's 50-day call/put volume ratio of 3.11 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 90% of readings from the past year. Drilling down to today's options activity, 6,756 calls and 2,569 calls have crossed the tape, which is triple the intraday average.

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