Vertiv (NYSE:VRT) Shares Gap Up - Here's Why

Key Points

• Vertiv Holdings Co. (NYSE:VRT) experienced a significant increase in stock price, opening at $134.24 compared to its previous close of $125.58, with shares last trading at $139.38.
• Analysts have a generally positive outlook on Vertiv, with several brokerages raising their price targets, including UBS Group increasing it to $173.00 and JPMorgan Chase lifting it to $150.00.
• Vertiv has announced a quarterly dividend of $0.0375 per share to be paid on September 25th, reflecting a dividend yield of 0.1%.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $125.58, but opened at $134.24. Vertiv shares last traded at $139.38, with a volume of 4,120,023 shares trading hands.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on VRT. Evercore ISI reissued an "outperform" rating on shares of Vertiv in a report on Thursday, July 10th. UBS Group lifted their price target on Vertiv from $135.00 to $173.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Mizuho increased their price objective on Vertiv from $125.00 to $150.00 and gave the stock an "outperform" rating in a report on Wednesday, July 16th. Rothschild & Co Redburn assumed coverage on Vertiv in a research note on Wednesday, August 20th. They set a "neutral" rating and a $135.00 target price on the stock. Finally, JPMorgan Chase & Co. boosted their price target on Vertiv from $127.00 to $150.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $142.00.

Vertiv Stock Performance

The firm's 50-day simple moving average is $131.19 and its two-hundred day simple moving average is $106.85. The stock has a market capitalization of $53.27 billion, a PE ratio of 66.72, a PEG ratio of 1.08 and a beta of 1.78. The company has a current ratio of 1.74, a quick ratio of 1.35 and a debt-to-equity ratio of 0.93.

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

Vertiv Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 25th. Shareholders of record on Monday, September 15th will be paid a dividend of $0.0375 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a $0.15 dividend on an annualized basis and a dividend yield of 0.1%. Vertiv's dividend payout ratio (DPR) is 7.18%.

Insider Activity at Vertiv

In related news, Director Steven Reinemund sold 100,000 shares of the stock in a transaction on Tuesday, August 26th. The stock was sold at an average price of $128.22, for a total transaction of $12,822,000.00. Following the completion of the sale, the director directly owned 133,333 shares in the company, valued at approximately $17,095,957.26. This trade represents a 42.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Karsten Winther sold 41,654 shares of Vertiv stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $134.21, for a total value of $5,590,383.34. Following the sale, the insider directly owned 18,848 shares of the company's stock, valued at approximately $2,529,590.08. The trade was a 68.85% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 180,952 shares of company stock valued at $23,360,571. 5.01% of the stock is owned by insiders.

Hedge Funds Weigh In On Vertiv

Hedge funds have recently added to or reduced their stakes in the company. GW&K Investment Management LLC acquired a new stake in Vertiv in the first quarter valued at approximately $26,000. Promus Capital LLC acquired a new stake in Vertiv in the second quarter valued at approximately $26,000. SouthState Corp acquired a new stake in Vertiv in the first quarter valued at approximately $27,000. Avion Wealth lifted its stake in Vertiv by 99.1% in the second quarter. Avion Wealth now owns 213 shares of the company's stock valued at $27,000 after acquiring an additional 106 shares during the last quarter. Finally, North Star Investment Management Corp. lifted its stake in Vertiv by 4,120.0% in the first quarter. North Star Investment Management Corp. now owns 422 shares of the company's stock valued at $30,000 after acquiring an additional 412 shares during the last quarter. Institutional investors and hedge funds own 89.92% of the company's stock.

Vertiv Company Profile

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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