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Dell Stock's Gains Could Be Muted in New Year, Says Analyst

The equity has added nearly 50% in 2021

Digital Content Manager
Dec 14, 2021 at 9:19 AM
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The shares of Dell Technologies Inc (NYSE:DELL) are down 2.6% at $54.27 this morning, following a downgrade from Evercore ISI to "in-line" from "outperform." The analyst noted that following several events, including a recent VMWare spinoff, it sees limited upside for the security, which has gained nearly 50% in 2021. Evercore maintained its $63 price target. 

It has been an impressive year of growth for DELL, which just came off a record high of $59.49 on Dec. 7. The security's recent stretch of its rally found guidance from the 50-day moving average, though today's drop may put the stock back below this trendline for the first time since September. 

Most analysts are still bullish, thanks in part to last month's impressive earnings report. Heading into today, 14 of the 21 in coverage called DELL a "buy" or better, while the 12-month consensus price target of $68.27 is a 25% premium to current levels. 

This optimism has translated to the options pits, where 10.40 calls have been picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) in the past 10 days. This ratio stands higher than 93% of readings from the past year, implying calls have rarely been more popular. 

 

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