TLDR:
- Michael Dell sold 10 million Dell shares worth $1.22 billion on September 28
- This was his second major stock sale in September, totaling over $2.3 billion
- Dell Technologies stock has gained 55% in 2024 due to AI-related interest
- The company joined the S&P 500 index last week after a decade-long absence
- Michael Dell remains the 13th richest person globally with a $111 billion fortune
Michael Dell, the founder and CEO of Dell Technologies, has executed two major stock sales in September 2024, divesting a total of $2.3 billion worth of shares in his namesake company.
The most recent transaction, disclosed in a regulatory filing on September 28, involved the sale of 10 million shares valued at $1.22 billion. This follows an earlier sale of 10 million shares worth $1.17 billion between September 19 and 23.
These stock sales come at a time when Dell Technologies has experienced substantial growth, with its stock price surging 55% year-to-date.
The company has benefited from increased investor interest in artificial intelligence (AI) technologies, particularly through rising sales of its high-powered servers used in AI applications.
Dell Technologies recently achieved a milestone by joining the S&P 500 index last week, marking its return to the prestigious list after a decade-long absence. This inclusion reflects the company’s strong performance and growing market presence in the tech sector.
Despite these large stock sales, Michael Dell remains a major shareholder in the company he founded. He continues to own about half of Dell Technologies, including shares held in his wife’s trust. The recent transactions have reduced his direct holdings to 16,912,241 shares, according to the SEC filing.
The stock sales have not significantly impacted Dell’s personal wealth. He currently ranks as the 13th richest person globally, with a fortune estimated at over $111 billion by the Bloomberg Billionaires Index. A substantial portion of his wealth is derived from his Dell Technologies holdings, with additional assets in Broadcom Inc. stock.
The timing of these stock sales coincides with Dell Technologies’ recent corporate developments. In August, the company implemented job cuts in its sales team and announced plans for further workforce reductions due to margin pressures.
Dell has mandated that its salespeople return to the office five days a week, signaling a shift in workplace policies.
Michael Dell has been vocal about the rapid advancement of generative AI, comparing its swift rise to the early days of the internet. He emphasized that AI’s adoption is happening at a much faster pace than previous technological waves, underlining the technology’s growing importance in the tech industry.
The company’s strong performance and Michael Dell’s stock sales have attracted attention from market analysts. In August, prominent financial commentator Jim Cramer expressed optimism about Dell Technologies’ stock, citing the company’s robust relationship with NVIDIA Corp, a leading player in the AI chip market.
Despite the large stock sales by its CEO, Dell Technologies continues to maintain a positive outlook in the market.
The company’s stock closed at $118.54 on September 30, representing a year-to-date increase of 58.50%.
