Vertiv (NYSE:VRT) Stock Price Down 7.6% - What's Next?

Key Points

• Vertiv shares fell 7.6% to about $237.57 in heavy trading, with volume 66% above the daily average. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook: Vertiv has a “Moderate Buy” consensus rating and an average price target of $357.83, despite one recent downgrade to “Hold.”
• The company reported quarterly EPS of $1.52, exceeding estimates, while revenue rose 24.1% year over year to $3.27 billion but fell short of expectations. Vertiv also declared a quarterly dividend of $0.0625 per share.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) shares dropped 7.6% during mid-day trading on Monday . The stock traded as low as $226.94 and last traded at $237.5670. 10,870,856 shares were traded during trading, an increase of 66% from the average daily volume of 6,558,345 shares. The stock had previously closed at $257.06.

Analysts Set New Price Targets

VRT has been the topic of a number of analyst reports. TD Cowen raised their target price on shares of Vertiv from $347.00 to $387.00 and gave the stock a "buy" rating in a research report on Wednesday, May 20th. Glj Research raised Vertiv from a "hold" rating to a "buy" rating and set a $381.00 price target on the stock in a research note on Friday, August 7th. Mizuho set a $380.00 price target on Vertiv in a research note on Thursday, May 21st. Wall Street Zen cut Vertiv from a "buy" rating to a "hold" rating in a report on Saturday, September 5th. Finally, UBS Group reaffirmed a "buy" rating and issued a $370.00 price objective on shares of Vertiv in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $357.83.

Vertiv Price Performance

The company's 50-day moving average is $278.40 and its 200-day moving average is $292.05. The firm has a market capitalization of $91.46 billion, a price-to-earnings ratio of 53.75, a PEG ratio of 1.05 and a beta of 2.07. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.38 and a quick ratio of 1.03.

Vertiv (NYSE:VRT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The company reported $1.52 EPS for the quarter, topping the consensus estimate of $1.43 by $0.09. The firm had revenue of $3.27 billion during the quarter, compared to analyst estimates of $3.38 billion. Vertiv had a net margin of 15.09% and a return on equity of 50.47%. Vertiv's revenue for the quarter was up 24.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $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, research analysts expect that Vertiv Holdings Co. will post 6.72 earnings per share for the current year.

Vertiv Announces Dividend

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

Insiders Place Their Bets

In related news, Director Edward Monser sold 15,287 shares of Vertiv stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $253.82, for a total value of $3,880,146.34. Following the transaction, the director owned 16,500 shares in the company, valued at approximately $4,188,030. This trade represents a 48.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.10% of the company's stock.

Institutional Trading of Vertiv

Institutional investors have recently modified their holdings of the company. California State Teachers Retirement System increased its position in shares of Vertiv by 33,242.5% in the second quarter. California State Teachers Retirement System now owns 185,501,329 shares of the company's stock worth $62,109,555,000 after acquiring an additional 184,944,978 shares in the last quarter. Wellington Management Group LLP boosted its position in Vertiv by 14.1% during the 2nd quarter. Wellington Management Group LLP now owns 3,794,360 shares of the company's stock worth $1,270,428,000 after purchasing an additional 468,380 shares during the period. Geode Capital Management LLC boosted its position in Vertiv by 2.1% during the 4th quarter. Geode Capital Management LLC now owns 7,065,912 shares of the company's stock worth $1,141,723,000 after purchasing an additional 143,821 shares during the period. Norges Bank acquired a new stake in Vertiv in the 4th quarter valued at $808,701,000. Finally, Legal & General Group Plc increased its holdings in Vertiv by 1.1% in the 2nd quarter. Legal & General Group Plc now owns 2,138,967 shares of the company's stock valued at $716,169,000 after purchasing an additional 23,444 shares in the last quarter. Hedge funds and other institutional investors own 89.92% of the company's stock.

Vertiv Company Profile

Vertiv Holdings Co NYSE: VRT designs, manufactures and services critical digital infrastructure that helps data centers, communications networks and other facilities operate reliably and efficiently. Its solutions support the availability, performance and growth of information technology systems.

The company's products and services include power management and distribution equipment, uninterruptible power supplies, thermal management and cooling systems, racks and integrated infrastructure, monitoring and management software, and lifecycle services.

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