Vertiv Holdings Co. (NYSE:VRT – Get Free Report) shares shot up 5.1% during mid-day trading on Tuesday. The company traded as high as $239.71 and last traded at $235.7160. Approximately 5,049,595 shares were traded during mid-day trading, a decline of 22% from the average session volume of 6,464,917 shares. The stock had previously closed at $224.24.
More Vertiv News
Here are the key news stories impacting Vertiv this week:
- Positive Sentiment: Vertiv agreed to a three-year strategic partnership with Infineon to support reliable access to silicon and silicon-carbide power semiconductors, including for its 800 VDC systems. The deal may help secure supplies as the company scales to meet infrastructure demand. Vertiv and Infineon Deepen Strategic Partnership for Critical Power Infrastructure
- Positive Sentiment: One Wall Street team argues the steep share decline may overstate the threat to Vertiv: the company posted a record quarter and raised guidance, while orders have not yet shown damage from the policy concerns. The article cites potential upside, though it flags that a change in the risk picture could matter. Vertiv Suffered a Near 40% Drop Over 6 Months
- Neutral Sentiment: A separate article examines whether Wall Street analysts expect VRT to rise or fall, but the provided headline does not specify a consensus rating or price target. Are Wall Street Analysts Predicting Vertiv Holdings Stock Will Climb or Sink?
- Negative Sentiment: Reports link weakness in AI-related stocks to concerns that the midterm results and a Texas data-center permit freeze could constrain future AI infrastructure spending. That raises the risk of slower demand for Vertiv’s data-center power and cooling equipment. Steve Weiss Says the Midterms Just Put a Lid on AI Spending
- Negative Sentiment: Broader concern about the AI trade weighed on related ETFs, while another report noted a pessimistic research forecast and a prior analyst downgrade of Vertiv. These factors may add to selling pressure and investor caution. Some of the Year’s Hottest AI ETFs Are in Big Trouble Today Vertiv Shares Down Following Analyst Downgrade
Wall Street Analyst Weigh In
A number of analysts have commented on the stock. KeyCorp decreased their price target on shares of Vertiv from $360.00 to $325.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Royal Bank Of Canada upped their price objective on shares of Vertiv from $323.00 to $351.00 and gave the stock an “outperform” rating in a report on Thursday, October 29th. Daiwa Securities Group dropped their price objective on shares of Vertiv from $400.00 to $340.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. Morgan Stanley set a $330.00 price objective on shares of Vertiv in a report on Friday, October 16th. Finally, UBS Group reissued a “buy” rating and set a $370.00 target price on shares of Vertiv in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $337.78.
Get Our Latest Stock Analysis on VRT
Vertiv Stock Performance
The company has a market cap of $67.85 billion, a PE ratio of 32.83, a PEG ratio of 0.65 and a beta of 2.11. The company has a quick ratio of 1.01, a current ratio of 1.39 and a debt-to-equity ratio of 0.53. The company has a 50-day moving average of $238.71 and a 200-day moving average of $269.70.
Vertiv (NYSE:VRT – Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The company reported $2.21 EPS for the quarter, beating analysts’ consensus estimates of $1.82 by $0.39. Vertiv had a return on equity of 53.31% and a net margin of 15.99%. The business had revenue of $4.31 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same period in the prior year, the firm posted $1.24 EPS. Vertiv’s quarterly revenue was up 61.2% compared to the same quarter last year. As a group, analysts anticipate that Vertiv Holdings Co. will post 7.17 earnings per share for the current year.
Vertiv Dividend Announcement
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Monday, September 14th were paid a $0.0625 dividend. This represents a $0.25 dividend on an annualized basis and a dividend yield of 0.1%. The ex-dividend date was Monday, September 14th. Vertiv’s payout ratio is presently 4.67%.
Insiders Place Their Bets
In other Vertiv news, Director Edward Monser sold 15,287 shares of the business’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $253.82, for a total value of $3,880,146.34. Following the transaction, the director owned 16,500 shares of the company’s stock, valued at approximately $4,188,030. The trade was a 48.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.10% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in VRT. Sachetta LLC grew its position in shares of Vertiv by 41.4% in the 1st quarter. Sachetta LLC now owns 123 shares of the company’s stock worth $31,000 after buying an additional 36 shares during the last quarter. Cornerstone Planning Group LLC grew its position in shares of Vertiv by 60.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 130 shares of the company’s stock worth $33,000 after buying an additional 49 shares during the period. Burkett Financial Services LLC purchased a new stake in Vertiv in the third quarter worth about $35,000. Center for Financial Planning Inc. grew its stake in shares of Vertiv by 554.2% in the 1st quarter. Center for Financial Planning Inc. now owns 157 shares of the company’s stock worth $39,000 after buying an additional 133 shares during the last quarter. Finally, Ravenstone Capital Management Inc. bought a new position in Vertiv during the 1st quarter valued at approximately $40,000. 89.92% of the stock is currently owned by hedge funds and other institutional investors.
About Vertiv
Vertiv Holdings Co (NYSE: VRT) designs, manufactures and services critical digital infrastructure that supports data centers, communication networks and other facilities requiring reliable power and environmental control. Its solutions are used by cloud and colocation providers, telecommunications companies, enterprises, industrial organizations and edge-computing operators.
The company’s offerings include uninterruptible power supplies, power distribution and management systems, thermal-management and cooling equipment, integrated racks and enclosures, modular infrastructure, and monitoring and control software.
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