Vertiv (NYSE:VRT) Stock Price Down 2% - Here's Why

Key Points

• Vertiv Holdings Co. stock price fell by 2% to $171.27, with trading volume increasing by 151% over the average daily volume.
• Recent analyst ratings included Barclays raising its price target to $145.00 and Mizuho increasing it to $198.00, signifying a mix of positive outlooks and caution from different research firms.
• Vertiv reported a quarterly earnings beat with $1.24 earnings per share and 29% year-over-year revenue growth, which highlights strong financial performance despite the stock price drop.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report)'s share price dropped 2% during mid-day trading on Wednesday . The stock traded as low as $162.68 and last traded at $171.27. Approximately 22,261,264 shares changed hands during trading, an increase of 151% from the average daily volume of 8,865,747 shares. The stock had previously closed at $174.80.

Analyst Upgrades and Downgrades

VRT has been the subject of several recent research reports. Barclays upped their price target on Vertiv from $128.00 to $145.00 and gave the stock an "equal weight" rating in a report on Wednesday, October 1st. The Goldman Sachs Group reiterated a "buy" rating on shares of Vertiv in a report on Wednesday. Mizuho upped their price target on Vertiv from $165.00 to $198.00 and gave the stock an "outperform" rating in a report on Friday, October 17th. Zacks Research downgraded Vertiv from a "strong-buy" rating to a "hold" rating in a report on Thursday, October 2nd. Finally, Melius Research upgraded Vertiv from a "hold" rating to a "strong-buy" rating and upped their price objective for the company from $134.00 to $165.00 in a research note on Tuesday, July 8th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Vertiv presently has a consensus rating of "Moderate Buy" and an average price target of $162.95.

Vertiv Price Performance

The stock has a market cap of $65.40 billion, a P/E ratio of 81.95, a P/E/G ratio of 1.51 and a beta of 1.84. 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 business has a 50 day simple moving average of $144.56 and a 200-day simple moving average of $121.71.

Vertiv (NYSE:VRT - Get Free Report) last announced its quarterly earnings data on Wednesday, October 22nd. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business's revenue for the quarter was up 29.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.76 EPS. Vertiv has set its Q4 2025 guidance at 1.230-1.290 EPS. FY 2025 guidance at 4.070-4.130 EPS. On average, sell-side analysts forecast that Vertiv Holdings Co. will post 3.59 EPS for the current year.

Vertiv Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 25th. Stockholders of record on Monday, September 15th were given a dividend of $0.0375 per share. This represents a $0.15 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date of this dividend was Monday, September 15th. Vertiv's dividend payout ratio is currently 7.18%.

Insider Transactions at Vertiv

In other news, Director Jakki L. Haussler sold 15,680 shares of the company's stock in a transaction on Monday, September 8th. The stock was sold at an average price of $123.92, for a total transaction of $1,943,065.60. Following the transaction, the director owned 4,631 shares of the company's stock, valued at $573,873.52. This represents a 77.20% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Steven Reinemund sold 100,000 shares of the company's stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $128.22, for a total value of $12,822,000.00. Following the transaction, the director directly owned 133,333 shares in the company, valued at $17,095,957.26. This represents a 42.86% decrease in their position. The disclosure for this sale can be found here. Insiders sold 180,952 shares of company stock worth $23,360,571 over the last quarter. 5.01% of the stock is currently owned by corporate insiders.

Institutional Trading of Vertiv

A number of institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in Vertiv by 0.8% during the 2nd quarter. Vanguard Group Inc. now owns 38,006,755 shares of the company's stock worth $4,880,447,000 after purchasing an additional 291,596 shares in the last quarter. State Street Corp lifted its holdings in Vertiv by 5.7% during the 2nd quarter. State Street Corp now owns 8,269,839 shares of the company's stock worth $1,061,930,000 after purchasing an additional 442,937 shares in the last quarter. Amundi lifted its holdings in Vertiv by 96.8% during the 1st quarter. Amundi now owns 6,951,773 shares of the company's stock worth $469,490,000 after purchasing an additional 3,420,144 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Vertiv by 3.4% during the 2nd quarter. Geode Capital Management LLC now owns 6,686,778 shares of the company's stock worth $856,082,000 after purchasing an additional 219,970 shares in the last quarter. Finally, Invesco Ltd. lifted its holdings in Vertiv by 20.9% during the 2nd quarter. Invesco Ltd. now owns 5,931,488 shares of the company's stock worth $761,662,000 after purchasing an additional 1,024,634 shares in the last quarter. Hedge funds and other institutional investors 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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