Dell Inc. (NASDAQ:DELL) announces small but important acquisition, 6th of the year
Dell Inc. (NASDAQ:DELL) declared its sixth buyout of the year after its third quarter earnings release and fourth quarter guidance sent its stock toward a three-year low. The takeover of privately-held Gale Technologies, unlike the previous acquisitions, provides a view of the company’s effort to shift its focus from a PC-centric business to a more enterprise-centric service business. Financial terms of this small but significant contract have not been disclosed.
Pursuant to the deal, Gale Technologies would turn into a division named Enterprise Systems & Solutions. With the new division, the tech giant will pay more attention on the development of management solutions for converged infrastructure, which will make the process of data center automation easy. Dell intends to retain Gale’s intellectual properties and to spend in sales/engineering to cut integration time.
During the recent trading activity Dell Inc. (NASDAQ:DELL) held volume of 29.80 million shares with 1.73 billion shares outstanding and 1.49 billion shares floated in market. P/E ratio of the company was 6.21 and in the past twelve months company scored revenue of $58.66 billion and had $2.61 billion in earnings. The stock gave a gross margin of +21.25% whereas operating margin was +5.53%.
Dell kicked off the trading session at $8.95 and during the session edged up 3.06% and finally settled at $9.13. The latest dividend per share paid to stockholders in recent quarter, also known as div/yield was 3.50% for the firm. Beta value, the measure of stock’s risk in relation to its market or alternative benchmark was 1.39.
The technology sector firm’s top rivals include Hewlett-Packard Company (NYSE:HPQ) that surged 3.50% to $13.30 with the total traded volume of 32.62 million shares and International Business Machines Corp. (NYSE:IBM) that moved up 1.82% to $190.35 with the total traded volume of 3.59 million shares.
DELL is ahead of its 52 weeks low with 5.06% and lagging behind from its 52 weeks high price with -49.86%. DELL’s last month’s stock price volatility remained 2.83%. The stock price of DELL is moving down from its 20 days moving average with -2.57% and remote negatively from 50 days moving average with -6.63%.