FengHe Fund Management Pte. Ltd. Makes New Investment in Vertiv Holdings Co. (NYSE:VRT)

Key Points

• FengHe Fund Management invested approximately $33.39 million in Vertiv Holdings Co., purchasing 462,450 shares, which now represent 12.5% of its investment portfolio.
• Vertiv recently reported a 35.1% increase in quarterly revenue compared to the previous year, reaching $2.64 billion, and beat analysts' earnings expectations with $0.95 EPS.
• Analyst ratings for Vertiv are positive, with eighteen analysts rating it as "buy" and a consensus price target of $144.06.

FengHe Fund Management Pte. Ltd. bought a new stake in shares of Vertiv Holdings Co. (NYSE:VRT - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 462,450 shares of the company's stock, valued at approximately $33,389,000. Vertiv accounts for 12.5% of FengHe Fund Management Pte. Ltd.'s holdings, making the stock its 2nd biggest holding. FengHe Fund Management Pte. Ltd. owned approximately 0.12% of Vertiv at the end of the most recent quarter.

Several other large investors also recently added to or reduced their stakes in VRT. Vanguard Group Inc. lifted its holdings in Vertiv by 3.7% during the first quarter. Vanguard Group Inc. now owns 37,715,159 shares of the company's stock valued at $2,723,034,000 after purchasing an additional 1,359,070 shares in the last quarter. Northern Trust Corp lifted its holdings in Vertiv by 21.9% during the fourth quarter. Northern Trust Corp now owns 2,713,234 shares of the company's stock valued at $308,251,000 after purchasing an additional 487,909 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in Vertiv by 54.1% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,314,934 shares of the company's stock valued at $263,000,000 after purchasing an additional 812,389 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in Vertiv by 3.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,112,929 shares of the company's stock valued at $240,051,000 after purchasing an additional 77,859 shares in the last quarter. Finally, New South Capital Management Inc. lifted its holdings in Vertiv by 1.7% during the first quarter. New South Capital Management Inc. now owns 2,110,392 shares of the company's stock valued at $152,370,000 after purchasing an additional 34,643 shares in the last quarter. 89.92% of the stock is currently owned by institutional investors.

Vertiv Trading Down 3.6%

VRT stock traded down $4.95 during mid-day trading on Thursday, reaching $132.45. 8,116,607 shares of the stock traded hands, compared to its average volume of 9,337,167. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.35 and a current ratio of 1.74. Vertiv Holdings Co. has a one year low of $53.60 and a one year high of $155.84. The stock has a market capitalization of $50.58 billion, a PE ratio of 63.37, a PEG ratio of 1.27 and a beta of 1.77. The business has a 50-day moving average price of $127.37 and a two-hundred day moving average price of $104.81.

Vertiv (NYSE:VRT - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.95 earnings per share for the quarter, beating analysts' consensus estimates of $0.83 by $0.12. Vertiv had a net margin of 8.93% and a return on equity of 51.64%. The business had revenue of $2.64 billion for the quarter, compared to analysts' expectations of $2.36 billion. During the same quarter in the previous year, the business posted $0.67 earnings per share. The business's revenue was up 35.1% compared to the same quarter last year. Equities research analysts expect that Vertiv Holdings Co. will post 3.59 EPS for the current year.

Vertiv Increases Dividend

The business also recently declared a dividend, which was paid on Thursday, June 26th. Stockholders of record on Tuesday, June 17th were issued a $0.0375 dividend. The ex-dividend date was Monday, June 16th. This is a boost from Vertiv's previous dividend of $0.01. This represents a dividend yield of 14.0%. Vertiv's dividend payout ratio (DPR) is currently 7.18%.

Wall Street Analyst Weigh In

Several brokerages have weighed in on VRT. Wolfe Research reaffirmed an "outperform" rating and set a $155.00 price target on shares of Vertiv in a report on Thursday, July 10th. Bank of America lifted their price target on shares of Vertiv from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 17th. KGI Securities initiated coverage on shares of Vertiv in a report on Thursday, April 24th. They issued a "hold" rating on the stock. Morgan Stanley reissued an "overweight" rating on shares of Vertiv in a report on Sunday. Finally, The Goldman Sachs Group reissued a "buy" rating on shares of Vertiv in a report on Friday, July 11th. Three investment analysts have rated the stock with a hold rating, eighteen have issued a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $144.06.

Insider Activity at Vertiv

In other news, EVP Stephen Liang sold 43,683 shares of the company's stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $115.83, for a total value of $5,059,801.89. Following the transaction, the executive vice president directly owned 9,551 shares in the company, valued at approximately $1,106,292.33. This represents a 82.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 2.63% of the company's stock.

Vertiv Profile

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.