Vertiv (NYSE:VRT) Stock Falls 1.4% - Here's What Happened

Key Points

• Vertiv shares fell 1.4% to about $203.12, with trading volume slightly above average. The stock remains well below its 50-day and 200-day moving averages of $254.42 and $288.82, respectively.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $335.67. Recent targets range from $340 at Wells Fargo to $375 at Bank of America, while Zacks Research downgraded the stock to “Hold.”
• Vertiv reported quarterly EPS of $1.52, exceeding the $1.43 consensus estimate, while revenue rose 24.1% year over year to $3.27 billion. The company also paid a $0.0625 quarterly dividend and reported that institutional investors own nearly 90% of its shares.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) shares traded down 1.4% on Tuesday. The stock traded as low as $197.90 and last traded at $203.1180. Approximately 6,670,868 shares changed hands during trading, an increase of 5% from the average session volume of 6,366,544 shares. The stock had previously closed at $206.08.

Analysts Set New Price Targets

VRT has been the subject of several recent analyst reports. Wells Fargo & Company assumed coverage on shares of Vertiv in a research note on Thursday, September 24th. They set an "overweight" rating and a $340.00 price objective for the company. HSBC dropped their target price on shares of Vertiv from $376.00 to $365.00 and set a "buy" rating for the company in a report on Friday, July 31st. Sanford C. Bernstein reissued an "outperform" rating on shares of Vertiv in a research note on Monday, September 28th. Zacks Research downgraded Vertiv from a "strong-buy" rating to a "hold" rating in a report on Monday, August 31st. Finally, Bank of America reduced their price target on Vertiv from $440.00 to $375.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $335.67.

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 firm's 50-day moving average is $254.42 and its 200-day moving average is $288.82. The company has a market cap of $78.20 billion, a PE ratio of 45.95, a PEG ratio of 0.77 and a beta of 2.05.

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

Vertiv Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Monday, September 14th were given a $0.0625 dividend. The ex-dividend date of this dividend was Monday, September 14th. This represents a $0.25 annualized dividend and a dividend yield of 0.1%. Vertiv's dividend payout ratio is currently 5.66%.

Insider Activity at Vertiv

In related news, Director Edward Monser sold 15,287 shares of Vertiv 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 sale, the director directly owned 16,500 shares in the company, valued at $4,188,030. The trade was a 48.09% decrease in their ownership of the stock. 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. 1.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Vertiv

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Jupiter Topco LLC bought a new stake in Vertiv during the second quarter valued at about $441,083,000. State Street Corp grew its position in shares of Vertiv by 4.5% during the second quarter. State Street Corp now owns 16,531,530 shares of the company's stock worth $5,535,087,000 after purchasing an additional 704,970 shares in the last quarter. Bank of New York Mellon Corp grew its position in shares of Vertiv by 33.7% during the first quarter. Bank of New York Mellon Corp now owns 2,410,642 shares of the company's stock worth $604,059,000 after purchasing an additional 608,176 shares in the last quarter. OP Asset Management Ltd bought a new stake in Vertiv during the 1st quarter valued at approximately $119,633,000. Finally, Wellington Management Group LLP raised its stake in Vertiv by 14.1% during the 2nd quarter. Wellington Management Group LLP now owns 3,794,360 shares of the company's stock valued at $1,270,428,000 after purchasing an additional 468,380 shares during the period. 89.92% of the stock is owned by hedge funds and other institutional investors.

About Vertiv

Vertiv Holdings Co NYSE: VRT designs, manufactures and services critical digital infrastructure that supports data centers, communication networks and other facilities requiring reliable power and environmental control. Its solutions are used by cloud and colocation providers, telecommunications companies, enterprises, industrial organizations and edge-computing operators.

The company's offerings include uninterruptible power supplies, power distribution and management systems, thermal-management and cooling equipment, integrated racks and enclosures, modular infrastructure, and monitoring and control software.

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