Shares of technology company Dell Technologies Inc. (DELL) have surged 109% over the past 12 months. DELL recently delivered a better-than-expected performance for the third quarter. The robust third-quarter numbers were attributable to buoyant demand, strong execution, and competitive advantages.
Additionally, ¸ shipments rose 26.6% over the prior year during this period. With these developments in mind, let’s have a look at what’s changed in Dell’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, Dell’s top risk category is Finance & Corporate, contributing 38% to the total 39 risks identified. In its recent quarterly report, the company has added one key risk factor under the Finance & Corporate risk category.
Dell highlighted the potential risks and uncertainties associated with its spin-off VMware, which may not achieve the intended benefits that Dell intends, including the benefits it seeks from a continuation of the strategic relationship with VMware.
Meanwhile, the potential for business disruption and substantial separation costs remains. Furthermore, planning and executing the spinoff has required significant additional time, effort, and expense from Dell. This spinoff may cause Dell’s customers to delay or defer decisions to purchase products, renew contracts, or end their relationships with Dell. Such factors could have an adverse impact on Dell’s business, financials, and the price of its Class C common shares. (See Insiders’ Hot Stocks on TipRanks)
Compared to a sector average of 40%, Dell’s Finance & Corporate risk factor is at 38%.
Wall Street’s Take
Consensus on the Street is a Strong Buy based on 8 Buys and 1 Hold for the stock. The average Dell Technologies price target of $63.04 implies a potential upside of 7.8% for the stock.
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