Vertiv (NYSE:VRT) Shares Up 6.6% Following Strong Earnings

Key Points

• Vertiv Holdings Co. shares rose by 6.6% after reporting strong quarterly earnings, with an EPS of $1.24 that exceeded expectations.
• The company's revenue for the quarter reached $2.68 billion, outpacing the forecast of $2.59 billion and marking a 29% year-over-year increase.
• Analysts have positive outlooks on Vertiv, with a consensus rating of "Moderate Buy" and a price target averaging around $177.52.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) shot up 6.6% during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $184.04 and last traded at $182.86. 9,601,376 shares changed hands during mid-day trading, an increase of 8% from the average session volume of 8,873,238 shares. The stock had previously closed at $171.59.

The company reported $1.24 EPS for the quarter, beating the consensus estimate of $0.99 by $0.25. The firm had revenue of $2.68 billion during the quarter, compared to the consensus estimate of $2.59 billion. Vertiv had a return on equity of 51.64% and a net margin of 8.93%.The company's quarterly revenue was up 29.0% on a year-over-year basis. During the same quarter in the previous year, the company 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 business also recently declared a quarterly dividend, which was paid on Thursday, September 25th. Investors 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 yield of 0.1%. Vertiv's dividend payout ratio is 7.18%.

Analyst Ratings Changes

VRT has been the topic of a number of recent research reports. Cowen set a $210.00 price objective on Vertiv in a report on Thursday. Bank of America increased their price objective on Vertiv from $140.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday, July 17th. Redburn Atlantic raised Vertiv to a "hold" rating in a report on Wednesday, August 20th. Cfra Research raised Vertiv to a "moderate buy" rating in a report on Tuesday, October 7th. Finally, Roth Capital reaffirmed a "buy" rating and issued a $195.00 price target (up previously from $162.00) on shares of Vertiv in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Vertiv currently has a consensus rating of "Moderate Buy" and a consensus price target of $177.52.

Insider Transactions at Vertiv

In related news, insider Karsten Winther sold 41,654 shares of the business's stock in a transaction that occurred on 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 owned 18,848 shares in the company, valued at $2,529,590.08. The trade was a 68.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Steven Reinemund sold 100,000 shares of the business's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $128.22, for a total value of $12,822,000.00. Following the completion of the sale, the director owned 133,333 shares of the company's stock, valued at $17,095,957.26. The trade was a 42.86% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 180,952 shares of company stock worth $23,360,571. 2.63% of the stock is owned by corporate insiders.

Institutional Trading of Vertiv

Hedge funds have recently bought and sold shares of the company. Financial Management Professionals Inc. lifted its position in Vertiv by 1,560.0% in the 3rd quarter. Financial Management Professionals Inc. now owns 166 shares of the company's stock worth $25,000 after buying an additional 156 shares during the last quarter. Pacer Advisors Inc. increased its stake in Vertiv by 67.6% in the 3rd quarter. Pacer Advisors Inc. now owns 171 shares of the company's stock worth $26,000 after purchasing an additional 69 shares during the period. True Wealth Design LLC increased its stake in Vertiv by 54.0% in the 3rd quarter. True Wealth Design LLC now owns 194 shares of the company's stock worth $29,000 after purchasing an additional 68 shares during the period. Promus Capital LLC purchased a new position in Vertiv in the 2nd quarter worth approximately $26,000. Finally, Avion Wealth increased its stake in Vertiv by 99.1% in the 2nd quarter. Avion Wealth now owns 213 shares of the company's stock worth $27,000 after purchasing an additional 106 shares during the period. Institutional investors own 89.92% of the company's stock.

Vertiv Stock Up 6.6%

The company has a current ratio of 1.74, a quick ratio of 1.35 and a debt-to-equity ratio of 0.93. The stock has a 50 day simple moving average of $145.24 and a 200 day simple moving average of $122.05. The firm has a market capitalization of $69.83 billion, a PE ratio of 87.49, a PEG ratio of 1.50 and a beta of 1.84.

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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