Stagnant Stock

Dell Technologies debuted on the NYSE on Dec. 28 with a price of $46 per share. The DELL stock has basically hovered at around that price point ever since. The price reached a high of $48.87 on Dec. 31 but began to decrease through the middle of January, hitting a low of $42.62 on Jan. 16. However, the stock has been slowly trending upwards over the past week, reaching $47.22 as of Tuesday morning.

Analysts such as Citigroup’s Jim Suva say the market under-appreciates the ability for Dell to pay down its roughly $50 billion in debt stemming from its blockbuster acquisition of EMC, which includes $4.3 billion due in the second quarter of this year. “We believe Dell will be able to pay down the $4.3 billion debt due in 2Q 2019 via its cash flow and current cash and short-term investment,” Suva said in a note last week. “Following this action consensus will recalibrate its interest costs lower closer to our estimate which will all materially boost consensus EPS higher in [the second half] 2019 and beyond. Therefore, we encourage investors to build a position in Dell shares prior to mid-2019.”