Vertiv (NYSE:VRT) Shares Up 6.4% - Time to Buy?

Key Points

• Vertiv shares rose 6.4% to about $242 on heavy trading volume after the company reported second-quarter adjusted EPS of $1.52, beating the $1.43 consensus estimate.
• Management raised its 2026 outlook for revenue, earnings, margins and free cash flow, while AI infrastructure demand remains strong, supported by an approximately $15 billion backlog and a book-to-bill ratio near 2.9.
• Despite the positive outlook, quarterly revenue of $3.27 billion missed the $3.38 billion estimate, creating concerns about backlog conversion. Analysts remain broadly bullish, with a “Moderate Buy” consensus and an average price target of $337.33.

Shares of Vertiv Holdings Co. (NYSE:VRT - Get Free Report) traded up 6.4% during trading on Friday . The stock traded as high as $251.71 and last traded at $242.0940. 10,769,978 shares were traded during trading, an increase of 57% from the average daily volume of 6,868,174 shares. The stock had previously closed at $227.50.

Key Headlines Impacting Vertiv

Here are the key news stories impacting Vertiv this week:

• Positive Sentiment: Raised outlook and earnings beat: Vertiv exceeded second-quarter adjusted EPS expectations, helped by stronger margins and operating execution. Management increased its 2026 guidance for revenue, adjusted operating profit, EPS, operating margin and free cash flow. Vertiv Q2 Earnings Beat Estimates, Net Sales Rise Year over Year
• Positive Sentiment: AI infrastructure demand remains a major catalyst: Analysts point to a roughly $15 billion backlog, a book-to-bill ratio near 2.9 times and a broadening data-center pipeline. Big Tech’s projected 2026 AI spending of more than $750 billion could support demand for Vertiv’s power and cooling systems. Buy 5 AI Infrastructure Stocks as Big Techs Assure Lasting AI Frenzy
• Positive Sentiment: Analysts see recovery potential: Commentary highlights an oversold stock, upward earnings-estimate revisions and substantial upside to consensus price targets. Oppenheimer also cited robust demand and a growing pipeline. Down 24.3% in 4 Weeks, Here's Why Vertiv Looks Ripe for a Turnaround
• Neutral Sentiment: Mixed analyst actions: Citigroup lowered its target to $358 while retaining a Buy rating, and KeyCorp reduced its target to $325 while maintaining Overweight. The cuts reflect near-term caution, but both targets imply considerable potential upside.
• Negative Sentiment: Revenue missed expectations: Second-quarter revenue rose year over year but came in below consensus, triggering heavy recent selling and raising concerns about the timing of backlog conversion. The stock remains well below its recent highs, although bulls argue the market is overreacting.

Analyst Ratings Changes

VRT has been the subject of a number of research reports. The Goldman Sachs Group lifted their target price on Vertiv from $277.00 to $311.00 and gave the stock a "buy" rating in a report on Tuesday, April 14th. Citigroup decreased their price target on shares of Vertiv from $414.00 to $358.00 and set a "buy" rating on the stock in a research note on Thursday. Morgan Stanley raised their price target on shares of Vertiv from $285.00 to $350.00 and gave the stock an "overweight" rating in a research report on Thursday, April 23rd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Vertiv in a research note on Tuesday, July 21st. Finally, Evercore set a $375.00 price objective on shares of Vertiv in a report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, Vertiv has a consensus rating of "Moderate Buy" and an average price target of $337.33.

Vertiv Stock Performance

The stock has a 50 day moving average of $307.36 and a 200 day moving average of $277.10. The company has a quick ratio of 1.15, a current ratio of 1.38 and a debt-to-equity ratio of 0.62. The firm has a market cap of $92.99 billion, a price-to-earnings ratio of 54.77, a P/E/G ratio of 0.92 and a beta of 2.03.

Vertiv (NYSE:VRT - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $1.52 earnings per share (EPS) 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 the consensus estimate of $3.38 billion. During the same period in the prior year, the company posted $0.95 earnings per share. The business's revenue for the quarter 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, analysts anticipate that Vertiv Holdings Co. will post 6.7 EPS for the current fiscal year.

Vertiv Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Monday, June 15th were given a dividend of $0.0625 per share. The ex-dividend date was Monday, June 15th. This represents a $0.25 annualized dividend and a dividend yield of 0.1%. Vertiv's dividend payout ratio (DPR) is currently 5.66%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Lingotto Investment Management LLP acquired a new position in shares of Vertiv during the fourth quarter worth $2,641,000. Norges Bank acquired a new stake in shares of Vertiv during the 4th quarter valued at $808,701,000. Sterling Investment Advisors Ltd. grew its position in Vertiv by 26.1% during the 4th quarter. Sterling Investment Advisors Ltd. now owns 22,476 shares of the company's stock worth $3,641,000 after acquiring an additional 4,645 shares during the last quarter. Dymon Asia Capital Singapore PTE. LTD. bought a new stake in Vertiv during the 4th quarter worth $2,197,000. Finally, WD Rutherford LLC increased its holdings in Vertiv by 80.7% in the 4th quarter. WD Rutherford LLC now owns 15,081 shares of the company's stock worth $2,443,000 after purchasing an additional 6,734 shares in the last quarter. 89.92% of the stock is currently owned by institutional investors and hedge funds.

Vertiv Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.