Vertiv (NYSE:VRT) Reaches New 12-Month High Following Earnings Beat

Key Points

• Vertiv Holdings Co. reached a new 52-week high of $184.50 after reporting earnings per share (EPS) of $1.24, beating analysts' expectations of $0.99, and a revenue of $2.68 billion.
• The company declared a quarterly dividend of $0.0375 per share, with a total annualized dividend yield of 0.1% and a payout ratio of 7.18%.
• Brokerage firms have raised their price targets for Vertiv, with Evercore ISI setting a new target of $200.00 and a majority of analysts rating the stock as a "Buy."

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) reached a new 52-week high during mid-day trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $184.50 and last traded at $166.06, with a volume of 6375741 shares. The stock had previously closed at $174.80.

The company reported $1.24 EPS for the quarter, beating analysts' consensus estimates of $0.99 by $0.25. The firm had revenue of $2.68 billion for the quarter, compared to analyst estimates of $2.59 billion. Vertiv had a return on equity of 51.64% and a net margin of 8.93%.The business's revenue for the quarter was up 29.0% on a year-over-year basis. During the same period last year, the firm posted $0.76 earnings per share. Vertiv has set its Q4 2025 guidance at 1.230-1.290 EPS. FY 2025 guidance at 4.070-4.130 EPS.

Vertiv Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 25th. Stockholders of record on Monday, September 15th were issued a dividend of $0.0375 per share. The ex-dividend date was Monday, September 15th. This represents a $0.15 annualized dividend and a dividend yield of 0.1%. Vertiv's payout ratio is currently 7.18%.

Analysts Set New Price Targets

Several brokerages recently issued reports on VRT. Evercore ISI upped their price target on Vertiv from $180.00 to $200.00 and gave the stock an "outperform" rating in a report on Monday. Melius raised Vertiv from a "hold" rating to a "buy" rating and set a $165.00 price target on the stock in a research report on Tuesday, July 8th. Citigroup upped their price target on Vertiv from $167.00 to $192.00 and gave the company a "buy" rating in a research report on Thursday, October 9th. Roth Capital restated a "buy" rating and issued a $195.00 target price (up previously from $162.00) on shares of Vertiv in a research note on Tuesday. Finally, Wolfe Research reiterated an "outperform" rating and issued a $155.00 target price on shares of Vertiv in a research note on Thursday, July 10th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Vertiv has an average rating of "Moderate Buy" and an average target price of $162.95.

Insider Buying and Selling

In other Vertiv news, Director Jakki L. Haussler sold 15,680 shares of Vertiv stock in a transaction on Monday, September 8th. The stock was sold at an average price of $123.92, for a total transaction of $1,943,065.60. Following the completion of the transaction, the director owned 4,631 shares in the company, valued at approximately $573,873.52. The trade was a 77.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Paul Ryan sold 22,218 shares of the business's stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $127.34, for a total value of $2,829,240.12. Following the completion of the transaction, the insider owned 12,803 shares of the company's stock, valued at $1,630,334.02. This represents a 63.44% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 180,952 shares of company stock worth $23,360,571 over the last three months. 5.01% of the stock is owned by corporate insiders.

Institutional Trading of Vertiv

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in shares of Vertiv by 0.8% in the second quarter. Vanguard Group Inc. now owns 38,006,755 shares of the company's stock worth $4,880,447,000 after acquiring an additional 291,596 shares during the period. State Street Corp boosted its stake in shares of Vertiv by 5.7% during the 2nd quarter. State Street Corp now owns 8,269,839 shares of the company's stock worth $1,061,930,000 after purchasing an additional 442,937 shares during the period. Amundi raised its holdings in shares of Vertiv by 96.8% in the first quarter. Amundi now owns 6,951,773 shares of the company's stock worth $469,490,000 after buying an additional 3,420,144 shares during the period. Geode Capital Management LLC raised its holdings in shares of Vertiv by 3.4% in the second quarter. Geode Capital Management LLC now owns 6,686,778 shares of the company's stock worth $856,082,000 after buying an additional 219,970 shares during the period. Finally, Invesco Ltd. increased its holdings in Vertiv by 20.9% during the 2nd quarter. Invesco Ltd. now owns 5,931,488 shares of the company's stock worth $761,662,000 after purchasing an additional 1,024,634 shares during the period. Institutional investors own 89.92% of the company's stock.

Vertiv Price Performance

The firm has a fifty day simple moving average of $144.56 and a 200 day simple moving average of $121.71. The company has a market capitalization of $63.06 billion, a PE ratio of 79.01, a P/E/G ratio of 1.51 and a beta of 1.84. The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.35 and a current ratio of 1.74.

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.

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