Vertiv (NYSE:VRT) Stock Price Down 1.8% After Analyst Downgrade

Key Points

• Vertiv shares fell 1.8% after Royal Bank of Canada lowered its price target on the stock from $435 to $418, though it kept an outperform rating.
• Despite the pullback, analyst sentiment remains broadly positive: Vertiv has a Moderate Buy consensus rating and a consensus price target of $342.73.
• The company recently posted strong results, with Q1 earnings of $1.17 per share beating estimates and revenue rising 30.1% year over year; it also issued upbeat FY 2026 guidance.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report)'s share price dropped 1.8% during mid-day trading on Friday after Royal Bank Of Canada lowered their price target on the stock from $435.00 to $418.00. Royal Bank Of Canada currently has an outperform rating on the stock. Vertiv traded as low as $272.93 and last traded at $288.7910. Approximately 5,962,248 shares were traded during trading, a decline of 13% from the average daily volume of 6,820,236 shares. The stock had previously closed at $294.11.

Several other research analysts have also weighed in on the stock. The Goldman Sachs Group lifted their price objective on shares of Vertiv from $277.00 to $311.00 and gave the stock a "buy" rating in a research note on Tuesday, April 14th. Sanford C. Bernstein began coverage on shares of Vertiv in a research note on Tuesday, June 9th. They issued an "outperform" rating and a $416.00 target price for the company. Morgan Stanley increased their target price on shares of Vertiv from $285.00 to $350.00 and gave the stock an "overweight" rating in a report on Thursday, April 23rd. Wall Street Zen cut shares of Vertiv from a "strong-buy" rating to a "buy" rating in a research report on Saturday, June 20th. Finally, Jefferies Financial Group reissued a "hold" rating and set a $260.00 price target (down from $280.00) on shares of Vertiv in a research report on Tuesday, March 31st. Three investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $342.73.

Institutional Trading of Vertiv

Several hedge funds have recently bought and sold shares of the stock. Sachetta LLC raised its holdings in shares of Vertiv by 41.4% during the first quarter. Sachetta LLC now owns 123 shares of the company's stock worth $31,000 after acquiring an additional 36 shares during the period. Cornerstone Planning Group LLC boosted its stake in Vertiv by 60.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 130 shares of the company's stock worth $33,000 after purchasing an additional 49 shares during the period. GoalVest Advisory LLC increased its holdings in Vertiv by 87.3% during the 2nd quarter. GoalVest Advisory LLC now owns 148 shares of the company's stock worth $50,000 after purchasing an additional 69 shares in the last quarter. Vermillion & White Wealth Management Group LLC increased its holdings in Vertiv by 58.3% during the 4th quarter. Vermillion & White Wealth Management Group LLC now owns 152 shares of the company's stock worth $25,000 after purchasing an additional 56 shares in the last quarter. Finally, Center for Financial Planning Inc. raised its stake in shares of Vertiv by 554.2% in the 1st quarter. Center for Financial Planning Inc. now owns 157 shares of the company's stock valued at $39,000 after purchasing an additional 133 shares during the period. 89.92% of the stock is currently owned by institutional investors and hedge funds.

Vertiv Price Performance

The stock has a market cap of $110.93 billion, a price-to-earnings ratio of 72.56, a P/E/G ratio of 1.31 and a beta of 2.03. The company has a 50 day simple moving average of $321.44 and a 200-day simple moving average of $269.26. The company has a current ratio of 1.49, a quick ratio of 1.15 and a debt-to-equity ratio of 0.69.

Vertiv (NYSE:VRT - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The company reported $1.17 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.17. The company had revenue of $2.65 billion during the quarter, compared to analysts' expectations of $2.63 billion. Vertiv had a return on equity of 49.90% and a net margin of 14.37%.Vertiv's revenue for the quarter was up 30.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.64 earnings per share. Vertiv has set its Q2 2026 guidance at 1.370-1.430 EPS and its FY 2026 guidance at 6.300-6.400 EPS. Research analysts expect that Vertiv Holdings Co. will post 6.38 EPS for the current year.

Vertiv Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Shareholders of record on Monday, June 15th were given a dividend of $0.0625 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $0.25 dividend on an annualized basis and a yield of 0.1%. Vertiv's dividend payout ratio is 6.28%.

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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