Vertiv (NYSE:VRT) Shares Down 3.3% – Should You Sell?

Shares of Vertiv Holdings Co. (NYSE:VRT) fell 3.3% during trading on Tuesday. The company traded as low as $188.50 and last traded at $193.93. 6,596,926 shares changed hands during mid-day trading, an increase of 0% from the average session volume of 6,574,396 shares. The stock had previously closed at $200.47.

Key Vertiv News

Here are the key news stories impacting Vertiv this week:

• Positive Sentiment: Vertiv’s third-quarter revenue increased 61% year over year, and organic orders rose more than 100%, supporting the outlook for continued demand from AI data-center build-outs. Article: GE Vernova, Vertiv, and Bloom Energy Just Lost 10% to 24% in a Week
• Positive Sentiment: Analyst commentary highlights record quarterly performance, margin expansion, backlog visibility and strength in the Americas as factors that could sustain growth through 2027. Article: Vertiv Holdings: Short-Term AI Fears, Long-Term Opportunity
• Positive Sentiment: Vertiv is identified as a potential supplier for data-center cooling as Anthropic’s filing describes substantial computing and lease commitments, indicating potential long-term infrastructure demand. Article: Anthropic’s S-1 Says It Will Expand Its Data Center Footprint
• Positive Sentiment: A Zacks screen also includes Vertiv among companies with strong interest coverage and earnings-growth prospects, suggesting financial resilience. Article: 4 Stocks with Impressive Interest Coverage Ratios to Buy Now
• Negative Sentiment: AI-power stocks are giving back a recent rally, with Vertiv among the names caught in the sector-wide retreat. The pullback reflects investor caution around AI-infrastructure valuations and the sustainability of future build-outs, weighing on shares despite Vertiv’s strong results. Article: AI Power Stocks Give Back Monday’s Rally

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on VRT shares. HSBC decreased their price objective on shares of Vertiv from $376.00 to $365.00 and set a “buy” rating for the company in a report on Friday, July 31st. Royal Bank Of Canada lifted their price target on shares of Vertiv from $323.00 to $351.00 and gave the stock an “outperform” rating in a research report on Thursday, October 29th. Wells Fargo & Company boosted their price target on shares of Vertiv from $340.00 to $345.00 and gave the company an “overweight” rating in a report on Thursday, October 29th. Morgan Stanley set a $330.00 price objective on shares of Vertiv in a research report on Friday, October 16th. Finally, KeyCorp dropped their price objective on Vertiv from $360.00 to $325.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Two research 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, Vertiv currently has an average rating of “Moderate Buy” and an average price target of $337.78.

Vertiv Stock Down 3.3%

The firm has a fifty day simple moving average of $235.86 and a 200-day simple moving average of $269.84. The firm has a market cap of $74.66 billion, a price-to-earnings ratio of 36.25, a P/E/G ratio of 0.65 and a beta of 2.11. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.01 and a current ratio of 1.39.

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

Vertiv Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Monday, September 14th were given a dividend of $0.0625 per share. The ex-dividend date was Monday, September 14th. This represents a $0.25 annualized dividend and a dividend yield of 0.1%. Vertiv’s dividend payout ratio is presently 4.67%.

Insider Activity

In related news, Director Edward Monser sold 15,287 shares of Vertiv stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $253.82, for a total value of $3,880,146.34. Following the completion of the sale, the director owned 16,500 shares of the company’s stock, valued at approximately $4,188,030. This trade represents a 48.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of VRT. Stelac Advisory Services LLC acquired a new stake in Vertiv in the 3rd quarter valued at about $6,790,000. McLaughlin Asset Management Inc. boosted its position in Vertiv by 1.3% during the third quarter. McLaughlin Asset Management Inc. now owns 5,115 shares of the company’s stock worth $1,234,000 after acquiring an additional 68 shares during the last quarter. Impax Asset Management Group plc lifted its stake in shares of Vertiv by 24.1% during the 3rd quarter. Impax Asset Management Group plc now owns 905,494 shares of the company’s stock worth $218,505,000 after purchasing an additional 175,991 shares during the period. Bridges Investment Management Inc. grew its position in shares of Vertiv by 1,825.5% in the third quarter. Bridges Investment Management Inc. now owns 79,425 shares of the company’s stock valued at $19,166,000 after purchasing an additional 75,300 shares during the period. Finally, Edgestream Partners L.P. purchased a new position in Vertiv during the third quarter worth about $421,000. Institutional investors own 89.92% of the company’s stock.

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.