Vertiv (NYSE:VRT) Trading Down 8.3% - Here's What Happened

Key Points

• Vertiv shares fell 8.3% on Monday, trading as low as $330.72 before closing around $340.31, with volume running about 15% above average.
• Despite the drop, analyst sentiment remains broadly positive: Vertiv has 22 Buy ratings, 4 Holds, and 1 Sell, with a consensus price target of $314.45.
• The company recently beat earnings expectations, reporting $1.17 EPS on $2.65 billion in revenue, while also seeing notable insider selling and continued heavy institutional ownership at 89.92%.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) traded down 8.3% during trading on Monday . The company traded as low as $330.72 and last traded at $340.3090. 8,059,523 shares changed hands during mid-day trading, an increase of 15% from the average session volume of 7,037,881 shares. The stock had previously closed at $370.94.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Zacks Research cut shares of Vertiv from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Royal Bank Of Canada increased their price target on shares of Vertiv from $356.00 to $435.00 and gave the company an "outperform" rating in a research report on Friday. Citigroup raised their price objective on shares of Vertiv from $353.00 to $414.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Jefferies Financial Group restated a "hold" rating and set a $260.00 price objective (down from $280.00) on shares of Vertiv in a research report on Tuesday, March 31st. Finally, Mizuho increased their target price on Vertiv from $198.00 to $290.00 and gave the company an "outperform" rating in a report on Thursday, February 12th. Twenty-two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $314.45.

Vertiv Stock Performance

The company has a market cap of $130.72 billion, a price-to-earnings ratio of 85.50, a price-to-earnings-growth ratio of 1.59 and a beta of 2.09. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.15 and a current ratio of 1.49. The stock's fifty day simple moving average is $293.64 and its two-hundred day simple moving average is $225.57.

Vertiv (NYSE:VRT - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The company reported $1.17 EPS 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 analyst estimates of $2.63 billion. Vertiv had a return on equity of 49.90% and a net margin of 14.37%.The firm's revenue was up 30.1% on a year-over-year basis. During the same period in the prior year, the firm posted $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. Equities research analysts anticipate that Vertiv Holdings Co. will post 6.42 EPS for the current year.

Vertiv Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, March 26th. Investors of record on Tuesday, March 17th were issued a $0.0625 dividend. The ex-dividend date was Tuesday, March 17th. This represents a $0.25 annualized dividend and a yield of 0.1%. Vertiv's dividend payout ratio (DPR) is presently 6.28%.

Insider Activity

In other news, Director Edward L. Monser sold 77,294 shares of the firm's stock in a transaction on Friday, March 6th. The shares were sold at an average price of $245.49, for a total value of $18,974,904.06. Following the transaction, the director owned 16,500 shares of the company's stock, valued at approximately $4,050,585. This trade represents a 82.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Chairman David M. Cote sold 40,000 shares of Vertiv stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $255.29, for a total transaction of $10,211,600.00. Following the transaction, the chairman owned 22,258 shares in the company, valued at $5,682,244.82. The trade was a 64.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 489,761 shares of company stock valued at $123,356,815 over the last quarter. 1.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vermillion & White Wealth Management Group LLC lifted its position 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 acquiring an additional 56 shares in the last quarter. Sankala Group LLC acquired a new stake in Vertiv in the fourth quarter valued at approximately $27,000. Meeder Asset Management Inc. raised its stake in shares of Vertiv by 211.3% during the fourth quarter. Meeder Asset Management Inc. now owns 165 shares of the company's stock valued at $27,000 after purchasing an additional 112 shares during the period. Rossby Financial LCC purchased a new stake in shares of Vertiv during the fourth quarter valued at approximately $27,000. Finally, Park Place Capital Corp lifted its position in shares of Vertiv by 624.0% during the fourth quarter. Park Place Capital Corp now owns 181 shares of the company's stock worth $29,000 after purchasing an additional 156 shares in the last quarter. Institutional investors and hedge funds own 89.92% of the company's stock.

Vertiv Company Profile

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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