Dell (NYSE:DELL) stock has returned about 100% year-to-date (YTD) on the heels of the artificial intelligence (AI) revolution — and CEO Michael Dell has taken full advantage of the generous returns. Dell’s last insider sale, on June 14, consisted of 2.83 million shares worth $379.54 million. Before that, he offloaded 7.09 million shares between June 10 and June 13.
In 2024, the CEO has now sold $2.12 billion worth of DELL stock.
These recent sales aren’t entirely surprising, as Dell filed a Form 144 on June 6. A Form 144 is filed when a person or entity plans on selling shares. In Dell’s case, the form showed that he planned on selling 10 million shares worth $1.35 billion at the time of the submission.
However, Dell’s sale is an example of the complexity of tracking insider trades. For starters, Dell’s most recent Form 4 showed that he owned 20.41 million shares directly and another 1.38 million shares indirectly through a trust following the sale. That’s misleading.
DELL Stock: CEO Michael Dell’s 2024 Sales Total $2.1 Billion
The Form 4 fails to reveal Dell’s holding of Class A common stock. DELL stock is classified as Class C common stock.
As of Dec. 31, Dell owned a total of 345.07 million shares of Class C common stock, equivalent to a 58.9% ownership stake, according to a regulatory filing. That includes 323.33 million shares of Class A, of which each share can be converted into one share of Class C. His ownership of Class A on the filing is characterized as if it has already been converted into Class C.
Based on Dell’s ownership at the end of 2023, his sales in 2024 have paled in comparison to his remaining stake. As a result, his sales are likely not indicative of his view of the company. Rather, the transactions should be viewed as a long-time CEO and founder taking well-deserved profits.
Dell was actually asked about his sales in a recent CNBC interview. He responded:
“I’ve been contributing shares to our foundation and selling some stock. But actually, because the share counts shrinking and I own about half the shares, my ownership percentage is going up.”
Dell’s statement checks out, as DELL stock outstanding has decreased by 2.26% in 2024 and 4.8% in 2023.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
