Vertiv (NYSE:VRT) Stock Falls 3.8% – Should You Sell?

Vertiv Holdings Co. (NYSE:VRT) shares fell 3.8% during mid-day trading on Friday. The stock traded as low as $196.00 and last traded at $201.6040. 5,374,975 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 6,573,086 shares. The stock had previously closed at $209.64.

Key Vertiv News

Here’s some of the latest news about VRT:

• Positive Sentiment: The company launched the PowerStation 3100 RPP, a power-distribution panel designed for AI and high-performance-computing racks above 100 kW. It supports 600–1,200 amps on one platform and is available in North America, giving Vertiv another product aimed at data-center demand. Vertiv introduces high-density remote power panel
• Neutral Sentiment: A report says Vertiv could provide cooling equipment for SpaceX data centers. This is a potential opportunity, not a confirmed contract, so any revenue impact remains uncertain. SpaceX spending and power and cooling suppliers
• Negative Sentiment: Recent bearish commentary highlights Vertiv’s weak chart and suggests waiting for a substantially lower entry price. That reflects investor concern about the stock’s near-term momentum, despite the company’s product announcements and growth prospects. Vertiv: Good quarter, crushed chart

Analysts Set New Price Targets

Several analysts recently commented on the stock. HSBC dropped their price target on shares of Vertiv from $376.00 to $365.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Roth Capital set a $345.00 price objective on shares of Vertiv in a research report on Thursday, October 29th. Weiss Ratings reissued a “hold (c+)” rating on shares of Vertiv in a research note on Thursday. Oppenheimer reissued an “outperform” rating and set a $325.00 target price (down from $353.00) on shares of Vertiv in a research note on Thursday, July 30th. Finally, Piper Sandler set a $375.00 target price on Vertiv in a research report on Wednesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $333.70.

Vertiv Stock Down 3.8%

The business has a 50-day moving average price of $231.31 and a 200-day moving average price of $270.23. The stock has a market cap of $77.63 billion, a PE ratio of 37.68, a price-to-earnings-growth ratio of 0.67 and a beta of 2.11. The company has a current ratio of 1.39, a quick ratio of 1.01 and a debt-to-equity ratio of 0.53.

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

Vertiv Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Tuesday, November 24th will be given a dividend of $0.10 per share. This is a boost from Vertiv’s previous quarterly dividend of $0.0625. The ex-dividend date is Tuesday, November 24th. This represents a $0.40 annualized dividend and a dividend yield of 0.2%. Vertiv’s payout ratio is currently 4.67%.

Insider Buying and Selling at Vertiv

In related news, Director Edward Monser sold 15,287 shares of the firm’s stock in a transaction dated 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 transaction, the director directly 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 sale was disclosed in a filing 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 currently owned by company insiders.

Institutional Investors Weigh In On Vertiv

Several large investors have recently bought and sold shares of VRT. Barrow Hanley Mewhinney & Strauss LLC acquired a new position in Vertiv during the third quarter worth $375,900,000. Jupiter Topco LLC purchased a new position in shares of Vertiv during the second quarter worth $441,083,000. Marshall Wace LLP grew its stake in shares of Vertiv by 128.9% in the third quarter. Marshall Wace LLP now owns 2,174,080 shares of the company’s stock valued at $524,627,000 after buying an additional 1,224,078 shares in the last quarter. State Street Corp grew its stake in shares of Vertiv by 4.5% in the second quarter. State Street Corp now owns 16,531,530 shares of the company’s stock valued at $5,535,087,000 after buying an additional 704,970 shares in the last quarter. Finally, Aberdeen Group plc grew its stake in shares of Vertiv by 142.5% in the third quarter. Aberdeen Group plc now owns 821,416 shares of the company’s stock valued at $198,216,000 after buying an additional 482,667 shares in the last quarter. 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 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.