Vertiv (NYSE:VRT) Shares Gap Down – Here’s Why

Vertiv Holdings Co. (NYSE:VRT) shares gapped down prior to trading on Tuesday. The stock had previously closed at $200.47, but opened at $188.50. Vertiv shares last traded at $198.3550, with a volume of 1,280,688 shares trading hands.

Trending Headlines about Vertiv

Here are the key news stories impacting Vertiv this week:

• Positive Sentiment: Vertiv’s third-quarter revenue rose 61%, with record results, margin expansion and strong order growth cited as evidence of ongoing AI data-center demand. One analyst argues the recent selloff has made the stock’s valuation more attractive, with backlog visibility supporting growth into fiscal 2027. Article: Vertiv Holdings: Short-Term AI Fears, Long-Term Opportunity
• Positive Sentiment: Anthropic’s IPO filing reportedly describes about $895 billion in computing and lease commitments. Vertiv is identified as a provider of data-center cooling, which could benefit if those infrastructure plans move forward; the commitments do not guarantee Vertiv-specific orders. Article: Anthropic’s S-1 Says It Will Expand Its Data Center Footprint
• Neutral Sentiment: A report flags recent options-market activity in VRT, but the available article summary does not specify whether trading is bullish or bearish. Article: Do Options Traders Know Something About Vertiv Stock We Don’t?
• Negative Sentiment: AI power and infrastructure stocks are giving back Monday’s gains, with Vertiv among the decliners. The sector-wide retreat is weighing on VRT despite its company-specific growth story. Article: AI Power Stocks Give Back Monday’s Rally
• Negative Sentiment: Permitting disputes could slow data-center construction, posing a risk to demand for supporting infrastructure such as Vertiv’s cooling systems. Article: AI Data Center Pipeline Could Dry Up

Analysts Set New Price Targets

A number of research firms recently commented on VRT. Mizuho set a $300.00 price objective on shares of Vertiv in a report on Thursday, October 29th. Robert W. Baird set a $320.00 target price on shares of Vertiv and gave the stock an “outperform” rating in a research report on Thursday, July 30th. TD Cowen increased their target price on shares of Vertiv from $356.00 to $357.00 and gave the company a “buy” rating in a report on Thursday, October 29th. The Goldman Sachs Group reduced their price target on shares of Vertiv from $352.00 to $301.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Finally, Weiss Ratings downgraded shares of Vertiv from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, August 14th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Vertiv has a consensus rating of “Moderate Buy” and a consensus target price of $337.78.

Vertiv Price Performance

The company has a market cap of $72.81 billion, a price-to-earnings ratio of 35.48, a price-to-earnings-growth ratio of 0.65 and a beta of 2.11. The company has a fifty day simple moving average of $235.86 and a two-hundred day simple moving average of $269.84. The company has a quick ratio of 1.01, a current ratio of 1.39 and a debt-to-equity ratio of 0.53.

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, topping 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 business’s revenue was up 61.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.24 EPS. On average, equities research analysts anticipate that Vertiv Holdings Co. will post 7.17 earnings per share for the current fiscal year.

Vertiv Announces Dividend

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

Insiders Place Their Bets

In other Vertiv news, Director Edward Monser sold 15,287 shares of Vertiv stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $253.82, for a total transaction of $3,880,146.34. Following the completion of the transaction, the director owned 16,500 shares in the company, valued at approximately $4,188,030. The trade was a 48.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.10% of the company’s stock.

Institutional Trading of Vertiv

Several large investors have recently modified their holdings of the business. Jupiter Topco LLC acquired a new stake in shares of Vertiv during the 2nd quarter worth about $441,083,000. State Street Corp grew its holdings in shares of Vertiv by 4.5% during the second quarter. State Street Corp now owns 16,531,530 shares of the company’s stock worth $5,535,087,000 after buying an additional 704,970 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Vertiv by 33.7% during the first quarter. Bank of New York Mellon Corp now owns 2,410,642 shares of the company’s stock worth $604,059,000 after buying an additional 608,176 shares in the last quarter. Aberdeen Group plc raised its position 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 during the last quarter. Finally, Wellington Management Group LLP raised its position in shares of Vertiv by 14.1% in the second quarter. Wellington Management Group LLP now owns 3,794,360 shares of the company’s stock valued at $1,270,428,000 after buying an additional 468,380 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.