Vertiv (NYSE:VRT) Trading Up 5.7% - Time to Buy?

Key Points

• Vertiv Holdings Co. (NYSE:VRT) shares increased by 5.7% to $151.72, with over 8.4 million shares traded, reflecting a decrease from its average daily volume.
• Analysts have been optimistic about Vertiv, with multiple upgrades to "buy" and "strong buy" ratings, increasing target prices significantly from $140.00 to as high as $173.00.
• The company reported quarterly earnings of $0.95 per share, exceeding expectations, alongside a notable 35.1% increase in revenue year-over-year, totaling $2.64 billion.

Vertiv Holdings Co. (NYSE:VRT - Get Free Report) was up 5.7% during mid-day trading on Monday . The stock traded as high as $152.45 and last traded at $151.72. Approximately 8,434,119 shares changed hands during trading, a decline of 6% from the average daily volume of 8,928,927 shares. The stock had previously closed at $143.60.

Wall Street Analysts Forecast Growth

VRT has been the subject of a number of analyst reports. The Goldman Sachs Group reiterated a "buy" rating on shares of Vertiv in a report on Friday, July 11th. Zacks Research raised shares of Vertiv to a "strong-buy" rating in a research report on Monday, August 11th. Melius raised shares of Vertiv from a "hold" rating to a "buy" rating and set a $165.00 price target for the company in a research report on Tuesday, July 8th. Roth Capital raised their target price on shares of Vertiv from $100.00 to $157.00 and gave the stock a "buy" rating in a report on Tuesday, July 29th. Finally, Barclays set a $128.00 price target on shares of Vertiv and gave the stock an "equal weight" rating in a research note on Thursday, July 31st. Two 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $142.00.

Vertiv Price Performance

The firm's 50-day moving average price is $133.72 and its two-hundred day moving average price is $110.13. The stock has a market cap of $54.45 billion, a PE ratio of 68.23, a PEG ratio of 1.27 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.

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

Vertiv Announces Dividend

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

Insider Activity at Vertiv

In other Vertiv news, insider Karsten Winther sold 41,654 shares of the company's 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 transaction, the insider owned 18,848 shares in the company, valued at approximately $2,529,590.08. This represents a 68.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 transaction of $12,822,000.00. Following the completion of the sale, the director directly owned 133,333 shares in the company, valued at $17,095,957.26. This trade represents a 42.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 180,952 shares of company stock worth $23,360,571. 5.01% of the stock is owned by company insiders.

Hedge Funds Weigh In On Vertiv

Institutional investors have recently made changes to their positions in the company. Norges Bank purchased a new stake in Vertiv during the second quarter worth $538,132,000. Winslow Capital Management LLC purchased a new stake in Vertiv during the second quarter worth $459,284,000. Amundi lifted its holdings in Vertiv by 96.8% during the first quarter. Amundi now owns 6,951,773 shares of the company's stock valued at $469,490,000 after purchasing an additional 3,420,144 shares in the last quarter. 1832 Asset Management L.P. lifted its holdings in Vertiv by 985.3% during 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 purchasing an additional 2,089,612 shares in the last quarter. Finally, Nordea Investment Management AB lifted its holdings in Vertiv by 100.1% during the second quarter. Nordea Investment Management AB now owns 3,246,769 shares of the company's stock valued at $415,132,000 after purchasing an additional 1,624,456 shares in the last quarter. 89.92% of the stock is owned by hedge funds and other institutional investors.

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.