When a big private equity player like Silver Lake makes a move, people notice. That's exactly what happened Friday morning when shares of Dell Technologies Inc. (DELL) jumped more than 4%. The catalyst? A fresh regulatory filing showing Silver Lake has taken a massive position in the computer maker.
According to an Amendment No. 13 to a Schedule 13D filed with the SEC, Silver Lake Group and its affiliates may be deemed to beneficially own a whopping 50,240,830 shares of Dell's Class C Common Stock. That represents about 13.6% of the class. It's the kind of stake that gets investors' attention, especially when it comes from a firm known for its tech investments.
The Nitty-Gritty of the Stake
Digging into the details, one specific entity, SL SPV-2, L.P., reported shared voting and dispositive power over 19,270,822 shares. That's a 5.7% stake all by itself. It's a classic private equity structure—using special purpose vehicles to hold positions—but the bottom line is clear: Silver Lake has a very significant interest in Dell.
Here's where it gets interesting, though. The same filing that revealed this big stake also noted some selling. On Thursday, certain reporting persons initiated distributions of 124,720 shares. Furthermore, between March 2 and March 18, the group sold an aggregate of 1,349,791 shares. So, while they're sitting on a huge position, they've also been trimming a bit recently. It's a reminder that even big investors are constantly adjusting their portfolios.
A Stock That's Already Been Running
The market's positive reaction to Silver Lake's disclosure comes against a backdrop of an already strong run for Dell. From a technical perspective, the stock is trading 17.7% above its 20-day simple moving average and 26.8% above its 100-day SMA. That's what traders call strong upside extension—the stock is way above its recent average prices.
Over the past 12 months, shares are up a staggering 69.48% and are currently trading much closer to their 52-week high of $168.08 than their low. The Relative Strength Index (RSI) sits at 66.15, which is in neutral territory—not overbought yet. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is flashing a bullish signal, with the MACD line above the signal line.
For traders watching the charts, key resistance sits at $168.00, while key support is at $137.50.
At the time of publication on Friday, Dell Technologies shares were up 4.45% at $163.73, according to market data. The stock is knocking on the door of that 52-week high, and with Silver Lake now officially holding a big piece of the pie, all eyes will be on whether it can break through.
