Dell Technologies Stock Brushes Off Forecast, Bear Notes

The tech name warned of high inflation and a slowing economy

Digital Content Manager
Nov 22, 2022 at 10:40 AM
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Dell Technologies Inc (NYSE:DELL) is up 4% at $42.73 at last check, reversing its premarket losses despite the company's dismal current-quarter outlook, after Dell warned of the negative impacts high inflation and a slowing economy could have on consumer spending. The tech name posted better-than-expected third-quarter earnings of $2.30, as well as a revenue beat of $24.54 billion.

The security attracted no fewer than nine price-target cuts in response, with Evercore ISI and Deutsche Bank slashing their objectives to $48. Meanwhile, Raymond James hiked its price target to $50 from $47. Analysts remain optimistic toward DELL, though, with nine of the 14 in coverage still calling it a "buy" or better.

Short-term options traders lean firmly bearish. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) 0.91, which ranks higher 83% of readings from the past year. 

Drilling down to today's options activity, 2,449 puts and 2,056 calls have crossed the tape, or nine times the average intraday volume. The December 40 put is seeing the most activity by far, followed by the 40 call in that monthly series.

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) sits at 92 out of 100. This indicates DELL tends to exceed options traders' volatility expectations -- a good thing for buyers.

Dell Technologies stock has been bouncing off its Oct. 13, two-year low of $32.91. The shares conquered the 80-day moving average earlier this month, which is now acting as support. A ceiling remains at the $44 region, however, and year-over-year DELL is off 22.3%.


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