Roth Capital Comments on Vertiv's FY2025 Earnings (NYSE:VRT)

Key Points

• Roth Capital has raised its FY2025 earnings estimate for Vertiv to $3.84 per share, up from a previous estimate of $3.62, maintaining a "Buy" rating with a target price of $157.00.
• The company reported a strong quarterly performance with an EPS of $0.95, surpassing consensus estimates, and a revenue increase of 35.1% year-over-year to $2.64 billion.
• Vertiv recently increased its dividend from $0.01 to $0.0375, representing a significant boost and a dividend yield of 14.0%.

Vertiv Holdings Co. (NYSE:VRT - Free Report) - Research analysts at Roth Capital lifted their FY2025 earnings estimates for shares of Vertiv in a research note issued to investors on Thursday, July 31st. Roth Capital analyst J. Clare now expects that the company will post earnings per share of $3.84 for the year, up from their prior forecast of $3.62. Roth Capital has a "Buy" rating and a $157.00 price target on the stock. The consensus estimate for Vertiv's current full-year earnings is $3.59 per share. Roth Capital also issued estimates for Vertiv's Q4 2025 earnings at $1.25 EPS, Q3 2026 earnings at $1.29 EPS, Q4 2026 earnings at $1.39 EPS, FY2026 earnings at $4.91 EPS and FY2027 earnings at $5.71 EPS.

Several other research analysts have also commented on VRT. JPMorgan Chase & Co. boosted their price objective on shares of Vertiv from $127.00 to $150.00 and gave the stock an "overweight" rating in a research note on Thursday. Melius upgraded shares of Vertiv from a "hold" rating to a "buy" rating and set a $165.00 price objective for the company in a research note on Tuesday, July 8th. Mizuho boosted their price objective on shares of Vertiv from $125.00 to $150.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 16th. Wolfe Research reiterated an "outperform" rating and set a $155.00 price objective on shares of Vertiv in a research note on Thursday, July 10th. Finally, KGI Securities assumed coverage on shares of Vertiv in a research note on Thursday, April 24th. They set a "hold" rating for the company. Three investment analysts have rated the stock with a hold rating, eighteen have assigned a buy rating and two have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $144.06.

Vertiv Stock Down 2.7%

Shares of NYSE VRT traded down $3.94 during trading hours on Friday, hitting $141.66. 10,317,134 shares of the stock were exchanged, compared to its average volume of 8,340,559. The company has a quick ratio of 1.28, a current ratio of 1.74 and a debt-to-equity ratio of 0.93. The company has a market cap of $53.99 billion, a PE ratio of 67.78, a PEG ratio of 1.36 and a beta of 1.77. The firm has a fifty day moving average price of $122.46 and a 200-day moving average price of $104.87. Vertiv has a 12 month low of $53.60 and a 12 month high of $155.84.

Vertiv (NYSE:VRT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.95 EPS for the quarter, beating the consensus estimate of $0.83 by $0.12. The business had revenue of $2.64 billion during the quarter, compared to analyst estimates of $2.36 billion. Vertiv had a net margin of 8.93% and a return on equity of 51.64%. The company's quarterly revenue was up 35.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.67 EPS.

Vertiv Increases Dividend

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

Insiders Place Their Bets

In other Vertiv news, insider Karsten Winther sold 5,500 shares of the company's stock in a transaction on Friday, May 9th. The shares were sold at an average price of $94.33, for a total transaction of $518,815.00. Following the completion of the transaction, the insider directly owned 18,847 shares in the company, valued at approximately $1,777,837.51. This represents a 22.59% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Stephen Liang sold 43,683 shares of the company's stock in a transaction on Friday, June 6th. The stock was sold at an average price of $115.83, for a total transaction of $5,059,801.89. Following the transaction, the executive vice president owned 9,551 shares of the company's stock, valued at $1,106,292.33. This represents a 82.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 2.63% of the company's stock.

Hedge Funds Weigh In On Vertiv

A number of large investors have recently added to or reduced their stakes in VRT. Ibex Wealth Advisors raised its position in shares of Vertiv by 10.5% in the first quarter. Ibex Wealth Advisors now owns 73,739 shares of the company's stock valued at $5,324,000 after buying an additional 6,989 shares during the last quarter. Gallo Partners LP acquired a new stake in shares of Vertiv in the fourth quarter valued at about $1,826,000. Massachusetts Financial Services Co. MA purchased a new stake in shares of Vertiv in the fourth quarter valued at about $597,379,000. Viking Fund Management LLC grew its holdings in shares of Vertiv by 123.5% in the first quarter. Viking Fund Management LLC now owns 38,000 shares of the company's stock valued at $2,744,000 after purchasing an additional 21,000 shares during the period. Finally, Geode Capital Management LLC grew its holdings in shares of Vertiv by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 6,050,965 shares of the company's stock valued at $688,260,000 after purchasing an additional 99,181 shares during the period. 89.92% of the stock is currently owned by institutional investors and hedge funds.

About Vertiv

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.