Vertiv (NYSE:VRT) Shares Down 3.9% - Here's Why

Key Points

• Vertiv Holdings Co. (NYSE:VRT) experienced a decline of 3.9% in its stock price, with approximately 1.9 million shares traded, significantly lower than its average volume of 9.2 million shares.
• Despite the stock's recent decline, various analysts have set optimistic price targets for Vertiv, with Roth Capital raising its target from $100 to $157 and Melius Research upgrading it to a strong-buy rating with a target of $165.
• Vertiv announced a new dividend of $0.0375 per share, a notable increase from its previous dividend of $0.01, representing a yield of 14.0%.

Shares of Vertiv Holdings Co. (NYSE:VRT - Get Free Report) were down 3.9% on Tuesday . The stock traded as low as $129.36 and last traded at $130.37. Approximately 1,945,031 shares traded hands during trading, a decline of 79% from the average daily volume of 9,227,557 shares. The stock had previously closed at $135.69.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the company. Roth Capital increased their price target on Vertiv from $100.00 to $157.00 and gave the company a "buy" rating in a research report on Tuesday, July 29th. Citigroup increased their price target on Vertiv from $130.00 to $149.00 and gave the company a "buy" rating in a research report on Monday, July 14th. William Blair assumed coverage on Vertiv in a research report on Monday, July 28th. They issued an "outperform" rating for the company. KGI Securities assumed coverage on Vertiv in a research report on Thursday, April 24th. They issued a "hold" rating for the company. Finally, Melius Research upgraded Vertiv from a "hold" rating to a "strong-buy" rating and raised their price objective for the stock from $134.00 to $165.00 in a research report on Tuesday, July 8th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Vertiv currently has a consensus rating of "Moderate Buy" and a consensus target price of $142.37.

Vertiv Trading Down 5.2%

The company has a debt-to-equity ratio of 0.93, a quick ratio of 1.35 and a current ratio of 1.74. The company has a 50-day simple moving average of $128.59 and a 200 day simple moving average of $105.22. The company has a market capitalization of $49.14 billion, a P/E ratio of 61.61, a P/E/G ratio of 1.17 and a beta of 1.77.

Vertiv (NYSE:VRT - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.95 EPS for the quarter, topping the consensus estimate of $0.83 by $0.12. The company had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.36 billion. Vertiv had a return on equity of 51.64% and a net margin of 8.93%.The company's revenue for the quarter was up 35.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.67 EPS. Vertiv has set its Q3 2025 guidance at 0.940-1.000 EPS. Sell-side analysts expect that Vertiv Holdings Co. will post 3.59 earnings per share for the current year.

Vertiv Increases Dividend

The firm also recently disclosed a dividend, which was paid on Thursday, June 26th. Shareholders of record on Tuesday, June 17th were paid a $0.0375 dividend. This is an increase from Vertiv's previous dividend of $0.01. This represents a yield of 14.0%. The ex-dividend date of this dividend was Monday, June 16th. Vertiv's payout ratio is presently 7.18%.

Insider Activity

In other Vertiv news, insider Karsten Winther sold 41,654 shares of the stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $134.21, for a total value of $5,590,383.34. Following the completion of the sale, the insider directly owned 18,848 shares in the company, valued at $2,529,590.08. This represents a 68.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Stephen Liang sold 43,683 shares of the stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $115.83, for a total value of $5,059,801.89. Following the completion of the sale, the executive vice president owned 9,551 shares of the company's stock, valued at $1,106,292.33. This trade represents a 82.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 5.01% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Canada Pension Plan Investment Board acquired a new position in Vertiv during the fourth quarter valued at approximately $17,465,000. Forum Financial Management LP acquired a new position in Vertiv during the fourth quarter valued at approximately $307,000. Capital World Investors boosted its position in Vertiv by 7.3% during the fourth quarter. Capital World Investors now owns 11,438 shares of the company's stock valued at $1,299,000 after purchasing an additional 774 shares during the last quarter. MML Investors Services LLC boosted its position in Vertiv by 26.3% during the fourth quarter. MML Investors Services LLC now owns 38,803 shares of the company's stock valued at $4,408,000 after purchasing an additional 8,087 shares during the last quarter. Finally, TD Waterhouse Canada Inc. boosted its position in Vertiv by 239.3% during the fourth quarter. TD Waterhouse Canada Inc. now owns 19,378 shares of the company's stock valued at $2,203,000 after purchasing an additional 13,667 shares during the last quarter. 89.92% of the stock is currently owned by institutional investors.

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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