Vertiv (NYSE:VRT) Shares Climb 2.5% - Time to Buy?

Key Points

• Vertiv shares rose 2.5% to about $252.38, though trading volume was 48% below the average daily level.
• Analysts maintain a favorable outlook, with a consensus “Moderate Buy” rating and an average price target of $357.08, despite several recent target reductions.
• Vertiv beat quarterly EPS estimates and reported 24.1% year-over-year revenue growth, but its valuation remains elevated at a price-to-earnings ratio of 57.10; the company pays a minimal 0.1% dividend yield.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) rose 2.5% during mid-day trading on Friday. The stock traded as high as $254.80 and last traded at $252.3770. 3,335,791 shares changed hands during trading, a decline of 48% from the average daily volume of 6,405,215 shares. The stock had previously closed at $246.12.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on VRT shares. KeyCorp dropped their price objective on Vertiv from $360.00 to $325.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. UBS Group reissued a "buy" rating and set a $370.00 price target on shares of Vertiv in a research report on Thursday, July 30th. Citigroup decreased their target price on Vertiv from $414.00 to $358.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Wells Fargo & Company initiated coverage on shares of Vertiv in a report on Thursday, September 24th. They issued an "overweight" rating and a $340.00 price target on the stock. Finally, Glj Research raised shares of Vertiv from a "hold" rating to a "buy" rating and set a $381.00 price target on the stock in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $357.08.

Vertiv Price Performance

The company has a quick ratio of 1.03, a current ratio of 1.38 and a debt-to-equity ratio of 0.62. The company has a 50 day simple moving average of $261.44 and a 200-day simple moving average of $290.90. The stock has a market cap of $97.16 billion, a price-to-earnings ratio of 57.10, a PEG ratio of 0.99 and a beta of 2.05.

Vertiv (NYSE:VRT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.43 by $0.09. Vertiv had a return on equity of 50.47% and a net margin of 15.09%.The business had revenue of $3.27 billion for the quarter, compared to analyst estimates of $3.38 billion. During the same period in the prior year, the company posted $0.95 EPS. The business's revenue was up 24.1% compared to the same quarter last year. Vertiv has set its Q3 2026 guidance at 1.770-1.830 EPS and its FY 2026 guidance at 6.650-6.750 EPS. As a group, research analysts anticipate that Vertiv Holdings Co. will post 6.73 EPS for the current fiscal year.

Vertiv Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Monday, September 14th were given a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Monday, September 14th. Vertiv's dividend payout ratio is presently 5.66%.

Insider Activity

In related news, Director Edward Monser sold 15,287 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $253.82, for a total transaction of $3,880,146.34. Following the completion of the transaction, the director owned 16,500 shares in the company, valued at $4,188,030. The trade was a 48.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Vertiv

Several institutional investors have recently modified their holdings of VRT. Burkett Financial Services LLC bought a new stake in Vertiv in the 3rd quarter valued at about $35,000. Stonebridge Financial Group LLC raised its holdings in shares of Vertiv by 2.2% during the third quarter. Stonebridge Financial Group LLC now owns 23,729 shares of the company's stock valued at $5,726,000 after buying an additional 508 shares during the last quarter. Marathon Mission Inc. boosted its position in shares of Vertiv by 9.8% during the third quarter. Marathon Mission Inc. now owns 1,533 shares of the company's stock worth $370,000 after buying an additional 137 shares during the period. QRG Capital Management Inc. boosted its position in shares of Vertiv by 11.7% during the second quarter. QRG Capital Management Inc. now owns 103,334 shares of the company's stock worth $34,598,000 after buying an additional 10,835 shares during the period. Finally, Envestnet Portfolio Solutions Inc. grew its holdings in Vertiv by 2.6% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 9,295 shares of the company's stock worth $3,112,000 after buying an additional 235 shares in the last quarter. Institutional investors own 89.92% of the company's stock.

About Vertiv

Vertiv Holdings Co provides digital infrastructure and continuity solutions for data centers, communication networks, and other technology-intensive facilities. The company helps customers design, build, operate, and maintain infrastructure that supports the availability, performance, and efficiency of critical digital systems.

Its product portfolio includes power management and distribution equipment, uninterruptible power supplies, switchgear, busways, racks, integrated modular systems, and data center infrastructure.

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