Vertiv (NYSE:VRT) Stock Price Down 5.3% - Time to Sell?

Key Points

• Vertiv's stock price fell by 5.3% during mid-day trading, dropping from a previous close of $125.70 to $119.10, with trading volume significantly below average.
• Investment analysts generally maintain a positive outlook on Vertiv, with a consensus rating of "Moderate Buy" and a target price of $142.00, despite recent price declines.
• Vertiv recently announced a quarterly dividend of $0.0375, translating to an annual yield of 0.1%, while significant insider selling has been reported over the last ninety days.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) shares fell 5.3% on Friday . The stock traded as low as $119.73 and last traded at $119.10. 2,725,131 shares changed hands during trading, a decline of 70% from the average session volume of 9,002,917 shares. The stock had previously closed at $125.70.

Analysts Set New Price Targets

Several research firms recently weighed in on VRT. Mizuho upped their price target on shares of Vertiv from $125.00 to $150.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 16th. Glj Research began coverage on shares of Vertiv in a research report on Tuesday, August 19th. They set a "sell" rating and a $112.00 price target for the company. Oppenheimer upped their price target on shares of Vertiv from $140.00 to $151.00 and gave the stock an "outperform" rating in a research report on Thursday, July 31st. UBS Group upped their price target on shares of Vertiv from $135.00 to $173.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Finally, William Blair assumed coverage on shares of Vertiv in a report on Monday, July 28th. They issued an "outperform" rating for the company. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Vertiv presently has an average rating of "Moderate Buy" and an average target price of $142.00.

Vertiv Stock Performance

The company has a market cap of $47.36 billion, a price-to-earnings ratio of 59.34, a P/E/G ratio of 1.09 and a beta of 1.78. 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's fifty day simple moving average is $131.26 and its 200 day simple moving average is $106.53.

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

Vertiv Announces Dividend

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

Insider Activity

In other news, insider Paul Ryan sold 22,218 shares of the stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $127.34, for a total value of $2,829,240.12. Following the completion of the sale, the insider owned 12,803 shares of the company's stock, valued at $1,630,334.02. This represents a 63.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Karsten Winther sold 41,654 shares of the stock in a transaction that occurred on Thursday, August 14th. The shares were sold at an average price of $134.21, for a total transaction of $5,590,383.34. Following the completion of the sale, the insider directly owned 18,848 shares of the company's stock, valued at approximately $2,529,590.08. This trade represents a 68.85% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 165,272 shares of company stock valued at $21,417,505 in the last 90 days. Company insiders own 2.63% of the company's stock.

Institutional Trading of Vertiv

Several hedge funds have recently made changes to their positions in VRT. GW&K Investment Management LLC purchased a new stake in shares of Vertiv in the 1st quarter valued at approximately $26,000. Promus Capital LLC purchased a new stake in shares of Vertiv in the 2nd quarter valued at approximately $26,000. SouthState Corp purchased a new stake in shares of Vertiv in the 1st quarter valued at approximately $27,000. Avion Wealth boosted its position in shares of Vertiv by 99.1% during 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. Finally, North Star Investment Management Corp. boosted its position in shares of Vertiv by 4,120.0% during the 1st quarter. North Star Investment Management Corp. now owns 422 shares of the company's stock worth $30,000 after purchasing an additional 412 shares during the period. 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.