Vertiv (NYSE:VRT) Shares Climb 6.5% - Here's What Happened

Key Points

• Vertiv shares rose 6.5% on Wednesday, closing at $206.79 after trading as high as $211.81, on volume slightly above average.
• The company reported third-quarter revenue growth of 61.2% year over year and earnings of $2.21 per share, both above expectations; organic orders increased more than 100%, signaling strong demand for AI data-center infrastructure.
• Analysts’ average rating is “Moderate Buy,” with an average price target of $333.70, though JPMorgan initiated coverage at “Neutral” and sector concerns could weigh on sentiment.

Shares of Vertiv Holdings Co. (NYSE:VRT - Get Free Report) rose 6.5% during trading on Wednesday. The company traded as high as $211.81 and last traded at $206.79. Approximately 6,872,187 shares changed hands during trading, an increase of 4% from the average session volume of 6,581,374 shares. The stock had previously closed at $194.22.

Vertiv News Roundup

Here's some of the latest news about VRT:

• Positive Sentiment: Recent results reinforce the growth case: Vertiv reported 61% year-over-year third-quarter revenue growth, beat earnings expectations, and raised its outlook. Organic orders also rose more than 100%, pointing to strong demand for AI data-center infrastructure. Vertiv’s Data Center Growth Fuels Revenue
• Positive Sentiment: A three-year agreement with Infineon is intended to secure key power semiconductors for Vertiv’s AI-focused systems, helping address component availability as the company pursues a larger role in data-center power and cooling. Vertiv Secures Infineon Supply Deal
• Negative Sentiment: The rally comes amid recent volatility and a broader sell-off in AI-power stocks. JPMorgan also remains cautious on the electrical-equipment sector, which could limit enthusiasm if investor concerns about AI infrastructure spending or regulation return. JPMorgan sees potential AI-stock rebound but remains cautious

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Roth Capital set a $345.00 price target on Vertiv in a research report on Thursday, October 29th. The Goldman Sachs Group dropped their target price on shares of Vertiv from $352.00 to $301.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. JPMorgan Chase & Co. started coverage on Vertiv in a research note on Wednesday. They set a "neutral" rating and a $240.00 price objective for the company. Daiwa Securities Group lowered their price target on Vertiv from $400.00 to $340.00 and set a "buy" rating for the company in a research note on Tuesday, July 21st. Finally, Bank of America reduced their price objective on shares of Vertiv from $440.00 to $375.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Vertiv presently has an average rating of "Moderate Buy" and an average target price of $333.70.

Vertiv Trading Up 6.5%

The company has a quick ratio of 1.01, a current ratio of 1.39 and a debt-to-equity ratio of 0.53. The business's 50 day simple moving average is $234.57 and its 200 day simple moving average is $269.90. The stock has a market cap of $79.63 billion, a price-to-earnings ratio of 38.65, a PEG ratio of 0.64 and a beta of 2.11.

Vertiv (NYSE:VRT - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $2.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.82 by $0.39. The business had revenue of $4.31 billion for the quarter, compared to analysts' expectations of $3.75 billion. Vertiv had a return on equity of 53.31% and a net margin of 15.99%. The firm's revenue for the quarter was up 61.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.24 EPS. On average, research analysts expect that Vertiv Holdings Co. will post 7.17 EPS for the current fiscal year.

Vertiv Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Monday, September 14th were paid a dividend of $0.0625 per share. The ex-dividend date of this dividend was Monday, September 14th. This represents a $0.25 annualized dividend and a yield of 0.1%. Vertiv's payout ratio is presently 4.67%.

Insider Activity at Vertiv

In related news, Director Edward Monser sold 15,287 shares of the firm's stock in a transaction 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 sale, the director owned 16,500 shares of the company's stock, valued at $4,188,030. This trade represents a 48.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.10% of the company's stock.

Hedge Funds Weigh In On Vertiv

Hedge funds have recently modified their holdings of the business. Advisors Asset Management Inc. bought a new stake in shares of Vertiv in the 3rd quarter valued at about $13,737,000. Edmond DE Rothschild Holding S.A. increased its position in Vertiv by 103.8% during the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 13,346 shares of the company's stock valued at $3,221,000 after purchasing an additional 6,796 shares during the period. GW&K Investment Management LLC lifted its position in shares of Vertiv by 95.5% in the 3rd quarter. GW&K Investment Management LLC now owns 1,361 shares of the company's stock worth $328,000 after purchasing an additional 665 shares during the period. Private Wealth Asset Management LLC boosted its stake in shares of Vertiv by 6,108.7% in the 3rd quarter. Private Wealth Asset Management LLC now owns 4,967 shares of the company's stock valued at $1,199,000 after purchasing an additional 4,887 shares during the last quarter. Finally, USS Investment Management Ltd increased its position in shares of Vertiv by 1.6% during the third quarter. USS Investment Management Ltd now owns 80,212 shares of the company's stock worth $19,367,000 after buying an additional 1,225 shares during the period. Institutional investors and hedge funds own 89.92% of the company's stock.

Vertiv Company Profile

Vertiv Holdings Co. NYSE: VRT designs, manufactures and services critical digital infrastructure used by data centers, communications networks and commercial and industrial facilities. Its offerings help customers maintain reliable power, cooling and operating conditions for technology systems. The company's products and solutions include uninterruptible power supplies, power distribution equipment, thermal management systems, racks, integrated modular infrastructure, and monitoring and control software.

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