Vertiv (NYSE:VRT) Shares Down 2.7% - Time to Sell?

Key Points

• Vertiv shares fell 2.7% to approximately $254.98, with trading volume about 40% below the average. The stock remains below its 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a consensus “Buy” rating and an average price target of $357.83, implying substantial upside from the current price.
• Vertiv reported quarterly EPS of $1.52, beating estimates by $0.09, while revenue increased 24.1% year over year to $3.27 billion. However, the stock trades at a relatively high P/E ratio of 57.69 and offers only a 0.1% dividend yield.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) dropped 2.7% on Monday . The stock traded as low as $249.97 and last traded at $254.9760. Approximately 3,968,648 shares changed hands during mid-day trading, a decline of 40% from the average daily volume of 6,659,576 shares. The stock had previously closed at $261.95.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on VRT shares. Sanford C. Bernstein reissued an "outperform" rating and set a $368.00 target price on shares of Vertiv in a report on Friday, July 31st. UBS Group reaffirmed a "buy" rating and set a $370.00 price objective on shares of Vertiv in a research report on Thursday, July 30th. Roth Capital reaffirmed a "buy" rating and set a $355.00 price objective on shares of Vertiv in a research report on Thursday, May 21st. Royal Bank Of Canada reduced their price objective on shares of Vertiv from $418.00 to $337.00 and set an "outperform" rating on the stock in a research note on Thursday, July 30th. Finally, Bank of America raised their target price on shares of Vertiv from $370.00 to $440.00 and gave the company a "buy" rating in a report on Friday, May 15th. Three analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $357.83.

Vertiv Stock Performance

The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.03 and a current ratio of 1.38. The firm has a market cap of $98.16 billion, a P/E ratio of 57.69, a P/E/G ratio of 1.08 and a beta of 2.06. The company's 50 day moving average is $294.65 and its 200 day moving average is $287.55.

Vertiv (NYSE:VRT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $1.52 earnings per share for the quarter, topping analysts' consensus estimates of $1.43 by $0.09. Vertiv had a net margin of 15.09% and a return on equity of 50.47%. The firm had revenue of $3.27 billion for the quarter, compared to analysts' expectations of $3.38 billion. During the same quarter in the previous year, the firm posted $0.95 earnings per share. The company's revenue was up 24.1% on a year-over-year basis. Vertiv has set its Q3 2026 guidance at 1.770-1.830 EPS and its FY 2026 guidance at 6.650-6.750 EPS. As a group, equities analysts predict that Vertiv Holdings Co. will post 6.7 earnings per share for the current fiscal year.

Vertiv Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Monday, June 15th were issued a $0.0625 dividend. This represents a $0.25 dividend on an annualized basis and a yield of 0.1%. The ex-dividend date of this dividend was Monday, June 15th. Vertiv's dividend payout ratio is presently 5.66%.

Institutional Trading of Vertiv

Hedge funds have recently made changes to their positions in the company. Vermillion & White Wealth Management Group LLC raised its holdings in Vertiv by 58.3% in the 4th quarter. Vermillion & White Wealth Management Group LLC now owns 152 shares of the company's stock valued at $25,000 after buying an additional 56 shares during the last quarter. Sankala Group LLC acquired a new position in Vertiv in the 4th quarter valued at approximately $27,000. Meeder Asset Management Inc. increased its position in Vertiv by 211.3% in the 4th quarter. Meeder Asset Management Inc. now owns 165 shares of the company's stock valued at $27,000 after acquiring an additional 112 shares during the period. Rossby Financial LCC bought a new stake in shares of Vertiv in the fourth quarter worth $27,000. Finally, Kohmann Bosshard Financial Services LLC acquired a new stake in Vertiv in the fourth quarter valued at $29,000. 89.92% of the stock is owned by institutional investors and hedge funds.

About Vertiv

Vertiv is a global provider of critical digital infrastructure and continuity solutions for data centers, communication networks and commercial and industrial environments. Headquartered in Columbus, Ohio, the company designs, manufactures and services equipment and software that support power availability, thermal management and IT infrastructure management for a broad set of end markets, including hyperscale and enterprise data centers, colocation providers, telecom operators and industrial customers.

The company's product portfolio includes uninterruptible power supplies (UPS), power distribution units (PDUs), battery and DC power systems, precision cooling and thermal management equipment, racks and enclosures, and integrated modular infrastructure.

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