Vertiv (NYSE:VRT) Shares Climb 3.3% – What’s Next?

Shares of Vertiv Holdings Co. (NYSE:VRT) rose 3.3% during mid-day trading on Friday. The company traded as high as $192.14 and last traded at $182.4930. Approximately 9,566,904 shares were traded during trading, an increase of 46% from the average session volume of 6,568,320 shares. The stock had previously closed at $176.73.

Trending Headlines about Vertiv

Here are the key news stories impacting Vertiv this week:

• Positive Sentiment: Vertiv’s recent quarter reportedly beat revenue estimates by about $550 million, delivered record results and came with raised guidance. One Wall Street team argues the selloff may overstate the threat because orders have not yet been affected. Vertiv Beat by $550 Million Last Week. It Has Lost 23% Since Tuesday’s Vote Vertiv Suffered a Near 40% Drop Over 6 Months
• Positive Sentiment: A report says Vertiv has locked in three years of AI power-chip supply. Securing supply could help the company serve continued demand for data-center infrastructure. Vertiv Holdings Co Locked In Three Years Of AI Power Chip Supply
• Neutral Sentiment: Zacks describes VRT as a strong growth stock, but its article highlights a research-service stock-rating framework rather than a new company development. Here’s Why Vertiv Holdings Co. Is a Strong Growth Stock
• Negative Sentiment: The main near-term pressure is concern that the election outcome and potential data-center permitting limits, including a reported Texas permit freeze, could restrain AI infrastructure spending. The reports indicate this is a prospective risk; they do not establish that Vertiv’s orders have declined. Steve Weiss Says the Midterms Just Put a Lid on AI Spending
• Negative Sentiment: Broader weakness in AI-related stocks and ETFs may be adding to pressure on VRT, while the article notes the shares have lost about 23% since Tuesday’s vote. Some of the Year’s Hottest AI ETFs Are in Big Trouble Today

Analysts Set New Price Targets

A number of research firms have recently commented on VRT. Glj Research cut their price objective on Vertiv from $188.00 to $187.00 and set a “sell” rating for the company in a research report on Monday, November 2nd. Sanford C. Bernstein upped their target price on Vertiv from $368.00 to $376.00 and gave the stock an “outperform” rating in a research note on Thursday, October 29th. BMO Capital Markets reiterated an “outperform” rating and set a $331.00 target price on shares of Vertiv in a research report on Thursday, October 29th. Morgan Stanley set a $330.00 price target on shares of Vertiv in a research note on Friday, October 16th. Finally, Roth Capital set a $345.00 price target on shares of Vertiv in a report on Thursday, October 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $337.78.

Vertiv Trading Up 3.3%

The company has a current ratio of 1.39, a quick ratio of 1.01 and a debt-to-equity ratio of 0.53. The company has a market capitalization of $70.26 billion, a price-to-earnings ratio of 34.11, a PEG ratio of 0.58 and a beta of 2.11. The company has a fifty day moving average of $236.97 and a 200-day moving average of $269.74.

Vertiv (NYSE:VRT) last posted its quarterly earnings data on Wednesday, October 28th. The company reported $2.21 EPS for the quarter, topping the consensus estimate of $1.82 by $0.39. Vertiv had a return on equity of 53.31% and a net margin of 15.99%. The company had revenue of $4.31 billion during the quarter, compared to analyst estimates of $3.75 billion. During the same period in the previous year, the business earned $1.24 EPS. Vertiv’s quarterly revenue was up 61.2% on a year-over-year basis. As a group, equities research analysts anticipate that Vertiv Holdings Co. will post 7.17 earnings per share for the current fiscal year.

Vertiv Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Monday, September 14th were paid a $0.0625 dividend. The ex-dividend date of this dividend was Monday, September 14th. This represents a $0.25 dividend on an annualized basis and a dividend yield of 0.1%. Vertiv’s payout ratio is currently 4.67%.

Insider Activity at Vertiv

In related news, Director Edward Monser sold 15,287 shares of the 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 completion of the transaction, the director directly owned 16,500 shares of the company’s stock, valued at approximately $4,188,030. This represents a 48.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.10% of the company’s stock.

Institutional Investors Weigh In On Vertiv

A number of hedge funds have recently modified their holdings of VRT. MSH Capital Advisors LLC boosted its position in Vertiv by 195.1% during the third quarter. MSH Capital Advisors LLC now owns 2,957 shares of the company’s stock worth $723,000 after acquiring an additional 1,955 shares during the last quarter. Ibex Wealth Advisors grew its stake in Vertiv by 1.5% during the 3rd quarter. Ibex Wealth Advisors now owns 101,621 shares of the company’s stock valued at $24,522,000 after acquiring an additional 1,508 shares in the last quarter. Aberdeen Group plc raised its holdings in Vertiv by 142.5% in the 3rd quarter. Aberdeen Group plc now owns 821,416 shares of the company’s stock valued at $198,216,000 after acquiring an additional 482,667 shares during the last quarter. Moors & Cabot Inc. raised its holdings in Vertiv by 2.1% in the 3rd quarter. Moors & Cabot Inc. now owns 11,554 shares of the company’s stock valued at $2,788,000 after acquiring an additional 234 shares during the last quarter. Finally, Valmark Advisers Inc. raised its holdings in Vertiv by 15.6% in the 3rd quarter. Valmark Advisers Inc. now owns 1,619 shares of the company’s stock valued at $391,000 after acquiring an additional 218 shares during the last quarter. 89.92% of the stock is currently owned by institutional investors and hedge funds.

About Vertiv

Vertiv Holdings Co (NYSE: VRT) designs, manufactures and services critical digital infrastructure used by data centers, communications networks and commercial and industrial facilities. Its offerings help customers maintain reliable power, cooling and operating conditions for technology systems.

The company’s products and solutions include uninterruptible power supplies, power distribution equipment, thermal management systems, racks, integrated modular infrastructure, and monitoring and control software.