Vertiv (NYSE:VRT) Trading 3.5% Higher - Time to Buy?

Key Points

• Vertiv Holdings Co. (NYSE:VRT) traded up 3.5%, reaching a high of $134.88, but saw a 70% decline in trading volume compared to its average.
• Analysts have issued positive ratings on Vertiv, with a consensus target price of $142.00 and notable upgrades, including a "buy" rating from Melius with a target of $165.00.
• The company reported earnings of $0.95 per share, exceeding expectations, and has recently increased its dividend to $0.0375 per share, reflecting a dividend yield of 14.0%.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) traded up 3.5% during mid-day trading on Thursday . The stock traded as high as $134.88 and last traded at $133.78. 2,712,854 shares were traded during mid-day trading, a decline of 70% from the average session volume of 9,094,492 shares. The stock had previously closed at $129.31.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on VRT shares. William Blair initiated coverage on Vertiv in a research report on Monday, July 28th. They issued an "outperform" rating on the stock. Morgan Stanley reissued an "overweight" rating on shares of Vertiv in a research note on Sunday, August 10th. Melius raised shares of Vertiv from a "hold" rating to a "buy" rating and set a $165.00 target price on the stock in a research note on Tuesday, July 8th. Bank of America upped their target price on shares of Vertiv from $140.00 to $150.00 and gave the stock a "buy" rating in a report on Thursday, July 17th. Finally, Zacks Research upgraded shares of Vertiv to a "strong-buy" rating in a research report on Monday, August 11th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Vertiv currently has a consensus rating of "Moderate Buy" and a consensus target price of $142.00.

Vertiv Trading Up 3.8%

The company's 50 day simple moving average is $130.48 and its two-hundred day simple moving average is $105.89. The company has a market cap of $51.26 billion, a PE ratio of 64.22, a price-to-earnings-growth ratio of 1.13 and a beta of 1.77. The company has a debt-to-equity ratio of 0.93, a current ratio of 1.74 and a quick ratio of 1.35.

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

Vertiv Increases Dividend

The company also recently announced a dividend, which was paid on Thursday, June 26th. Investors of record on Tuesday, June 17th were issued a dividend of $0.0375 per share. This is a positive change from Vertiv's previous dividend of $0.01. The ex-dividend date was Monday, June 16th. This represents a yield of 14.0%. Vertiv's dividend payout ratio (DPR) is 7.18%.

Insider Buying and Selling at Vertiv

In related news, insider Paul Ryan sold 22,218 shares of the business's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $127.34, for a total transaction of $2,829,240.12. Following the completion of the sale, the insider owned 12,803 shares in the company, valued at $1,630,334.02. The trade was a 63.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Stephen Liang sold 43,683 shares of the company'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 completion of the transaction, the executive vice president owned 9,551 shares of the company's stock, valued at $1,106,292.33. This represents a 82.06% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 208,955 shares of company stock worth $26,477,307. 2.63% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Vertiv

Several hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new stake in Vertiv in the second quarter valued at about $538,132,000. Winslow Capital Management LLC purchased a new position in shares of Vertiv during the 2nd quarter worth approximately $459,284,000. Amundi lifted its holdings in shares of Vertiv by 96.8% in the 1st quarter. Amundi now owns 6,951,773 shares of the company's stock valued at $469,490,000 after buying an additional 3,420,144 shares during the period. 1832 Asset Management L.P. boosted 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 valued at $166,183,000 after buying an additional 2,089,612 shares in the last quarter. Finally, Nordea Investment Management AB boosted 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 valued at $415,132,000 after buying an additional 1,624,456 shares in the last quarter. 89.92% of the stock is owned by institutional investors and hedge funds.

About Vertiv

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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