Insiders Executed Stock Transactions in This Turnaround PC Company

A number of insiders at Dell, Inc. (NASDAQ:DELL) have made some interesting transactions in the stock recently.  Dell’s shares have traded in a 52-week range of $11.34 and $17.52 and most recently traded at $15.14.  The stock earned $1.35 per share in the past year.  The company has a market capitalization of $28.83 billion, and a forward price-to-earnings ratio of 8.59.  Its price-to-earnings growth ratio is 1.9, its price-to-sales ratio is 0.46, and its price-to-book ratio is 3.63.  All of these ratios are unusually low for a technology company.  Clearly, the market has a lot of skepticism about Dell’s future earnings, at least as compared to more popular stocks such as Apple (NASDAQ:AAPL) or Google (NASDAQ:GOOG). Dell, Yahoo, and Nokia Kamikaze Blitz Apple>>

The recent sales price is $15.14 and there are $1,910,000,000 shares outstanding.

Michael Dell, Chairman and CEO of Dell Inc. (NASDAQ:DELL) has made a very bullish bet on the company he founded.  He bought $150,021,915 worth of shares on the open market in March 2011.  He acquired these shares over three days, March 16th through March 18th, at market prices between $14.21 and $14.41 per share.  He acquired 3,287,000 shares on March 18th, 2,150,000 shares on March 17th, and 5,000,000 shares on March 16th.  He presently holds 243,349,682 shares worth approximately $3.7 billion as of today’s trading.

Other insiders who have made transactions in Dell include:

  • Thomas W. Lucie III, who is a Director, sold 10,766 shares on March 11th at a market price of $15.24.  He presently holds 39,702 shares worth approximately $600,000 as of today’s trading.
  • Karen H. Qutinos, who is a Senior Vice President, sold 13,756 shares at a market price of $14.81 per share, for proceeds of $203,726.   She presently holds 203,726 shares worth approximately $580,000 as of today’s trading.
  • Stephen Francis Schucknbrock, who is President, exercised 200,000 options at $8.39 per share on March 11th.  He subsequently sold 200,000 shares at a market price of $15.16 on March 11th.  The net proceeds from these transactions were $1,354,000.  He presently holds 393,105 shares worth $5,951,609 as of today’s trading.
  • Thomas W. Sweet, who is Chief Administrative Officer, sold 10,000 shares at a market price of $14.83 on March 21st.  The net proceeds from this transaction were $148,300.  He presently holds 177,765 shares worth $2,691,362.10 as of today’s trading.
  • Lawrence Tu, who is a Senior Vice President, exercised 48,000 options at a cost of $8.59 per option on March 9th, 2011.  He subsequently sold 90,200 shares at a market price of $15.46 on March 9th, for net proceeds of $991,819.  He presently holds 239,913 shares with a market value of $3,6332,282.82 as of today’s trading.

Dell’s main competitors include IBM (NYSE:IBM), H-P (NYSE:HPQ), Apple (NASDAQ:AAPL), while partner companies include Best Buy (NYSE:BBY), Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT).

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