Analyzing Dell stock’s fundamentals and technicals
Dell Technologies Inc. (NYSE:DELL) is an American tech company headquartered in Round Rock, Texas. DELL offers personal computers, servers, smartphones, televisions, computer software, computer security, and network security, as well as information security services. This afternoon, DELL was last seen trading down 1.6% at $108.50.
Last month, on Sept. 30, Dell Technologies announced the appointment of David Grain as the tech company’s newest independent member of the Board of Directors. Grain is the founder and Chief Executive Officer of Grain Management, a private equity firm focused on global investments in the media and communications sectors.
Dell stock has increased about 83% in price year-over-year and has jumped 84% since hitting its 52-week low of $58.88 last October. Additionally, shares of Dell have grown 43% year-to-date and Dell Technologies stock is currently down just 5% from its Oct. 25 record high of $115.
In general, the biggest fundamental issue with Dell Technologies seems to be its weak balance sheet, which holds $11.72 billion in cash and $45.78 billion in total debt. Nonetheless, Dell stock trades at a price-earnings ratio of 22.84, which is decent for a tech company valued at $84 billion. However, what is most promising about Dell stock is its forward price-earnings ratio. DELL’s forward price earnings ratio of 11.51 is nearly half its current value, giving Dell stock massive growth potential for the coming year should the company perform as expected with earnings.
Short interest has been climbing for the equity, up a notable 40% during that past two reporting periods. This accounts for nearly 4% of the stock's total available float, or a week's worth of pent-up buying power.
Plus, now looks like a good time to weigh in on DELL's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 24% stands higher than just 17% of all other readings in its annual range, implying that options players are pricing in low volatility expectations at the moment.