Vertiv (NYSE:VRT) Stock Price Down 4.6% - Here's What Happened

Key Points

• Vertiv Holdings Co. (NYSE:VRT) shares fell 4.6% on Wednesday, trading as low as $121.41, with a significant decrease in trading volume of 60% from the average session.
• Analysts generally maintain a positive outlook on Vertiv, with a consensus rating of Moderate Buy and a target price of $142.00, while notable firms like Oppenheimer raised their price target to $151.00.
• Vertiv recently announced a dividend increase to $0.0375 per share, marking a significant boost from its previous $0.01, reflecting a strong dividend yield of 14.0%.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) shares dropped 4.6% on Wednesday . The company traded as low as $121.41 and last traded at $123.14. Approximately 3,699,964 shares traded hands during mid-day trading, a decline of 60% from the average daily volume of 9,227,995 shares. The stock had previously closed at $129.05.

Wall Street Analyst Weigh In

VRT has been the topic of several recent analyst reports. Zacks Research upgraded Vertiv to a "strong-buy" rating in a report on Monday, August 11th. Evercore ISI restated an "outperform" rating on shares of Vertiv in a report on Thursday, July 10th. JPMorgan Chase & Co. boosted their price objective on Vertiv from $127.00 to $150.00 and gave the stock an "overweight" rating in a report on Thursday, July 31st. UBS Group boosted their price objective on Vertiv from $135.00 to $173.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Finally, Barclays set a $128.00 price objective on Vertiv and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Two investment 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 issued a Sell rating to the stock. Based on data from MarketBeat.com, Vertiv has an average rating of "Moderate Buy" and a consensus target price of $142.00.

Vertiv Stock Down 0.5%

The company has a debt-to-equity ratio of 0.93, a current ratio of 1.74 and a quick ratio of 1.35. The firm has a market cap of $48.11 billion, a PE ratio of 60.29, a P/E/G ratio of 1.11 and a beta of 1.77. The business has a fifty day moving average price of $129.89 and a two-hundred day moving average price of $105.65.

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

Vertiv Increases Dividend

The firm also recently announced a dividend, which was paid on Thursday, June 26th. Shareholders of record on Tuesday, June 17th were paid a $0.0375 dividend. This represents a yield of 14.0%. This is a boost from Vertiv's previous dividend of $0.01. The ex-dividend date was Monday, June 16th. Vertiv's dividend payout ratio is presently 7.18%.

Insider Buying and Selling at Vertiv

In other news, EVP Stephen Liang sold 43,683 shares of the firm's stock in a transaction on Friday, June 6th. The shares were sold at an average price of $115.83, for a total transaction of $5,059,801.89. Following the transaction, the executive vice president owned 9,551 shares in the company, valued at approximately $1,106,292.33. This trade represents a 82.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Karsten Winther sold 41,654 shares of the stock in a transaction on Thursday, August 14th. The stock was sold at an average price of $134.21, for a total transaction of $5,590,383.34. Following the transaction, the insider directly owned 18,848 shares in the company, valued at $2,529,590.08. The trade was a 68.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 2.63% of the company's stock.

Institutional Trading of Vertiv

A number of institutional investors and hedge funds have recently made changes to their positions in VRT. Norges Bank acquired a new stake in shares of Vertiv in the second quarter worth about $538,132,000. Winslow Capital Management LLC acquired a new stake in shares of Vertiv in the second quarter worth about $459,284,000. Amundi lifted its position in shares of Vertiv by 96.8% in the first quarter. Amundi now owns 6,951,773 shares of the company's stock worth $469,490,000 after buying an additional 3,420,144 shares during the last quarter. 1832 Asset Management L.P. increased its stake in shares of Vertiv by 985.3% in the first quarter. 1832 Asset Management L.P. now owns 2,301,700 shares of the company's stock worth $166,183,000 after purchasing an additional 2,089,612 shares during the period. Finally, Nordea Investment Management AB increased its stake in shares of Vertiv by 100.1% in the second quarter. Nordea Investment Management AB now owns 3,246,769 shares of the company's stock worth $415,132,000 after purchasing an additional 1,624,456 shares during the period. 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.