Vertiv (NYSE:VRT) Stock Falls 14.3% – Here’s What Happened

Vertiv Holdings Co. (NYSE:VRT)’s stock price was down 14.3% on Thursday. The stock traded as low as $170.80 and last traded at $176.2410. Approximately 19,212,888 shares traded hands during mid-day trading, an increase of 193% from the average daily volume of 6,549,352 shares. The stock had previously closed at $205.55.

Key Stories Impacting 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

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Jefferies Financial Group lowered their price objective on Vertiv from $320.00 to $245.00 and set a “hold” rating on the stock in a research report on Thursday, July 30th. KeyCorp dropped their price target on shares of Vertiv from $360.00 to $325.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. The Goldman Sachs Group reduced their price objective 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. Loop Capital decreased their price objective on shares of Vertiv from $500.00 to $400.00 and set a “buy” rating on the stock in a report on Friday, July 31st. Finally, Wall Street Zen upgraded shares of Vertiv from a “hold” rating to a “buy” rating in a research report on Saturday, October 31st. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $337.78.

Vertiv Stock Up 3.3%

The business’s fifty day moving average is $236.97 and its two-hundred day moving average is $269.74. 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 stock has a market cap of $70.26 billion, a price-to-earnings ratio of 34.11, a PEG ratio of 0.71 and a beta of 2.11.

Vertiv (NYSE:VRT) last released its earnings results 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 firm had revenue of $4.31 billion for the quarter, compared to analyst estimates of $3.75 billion. Vertiv had a net margin of 15.99% and a return on equity of 53.31%. The business’s quarterly revenue was up 61.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.24 earnings per share. Equities analysts forecast that Vertiv Holdings Co. will post 7.17 earnings per share for the current fiscal year.

Vertiv Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Monday, September 14th were issued a dividend of $0.0625 per share. 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 dividend payout ratio (DPR) 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 that occurred 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 $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 is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Vertiv

Institutional investors have recently bought and sold shares of the company. Sachetta LLC raised its stake in shares of Vertiv by 41.4% during 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 increased its holdings in Vertiv by 60.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 130 shares of the company’s stock valued at $33,000 after acquiring an additional 49 shares in the last quarter. Burkett Financial Services LLC purchased a new position in Vertiv during the 3rd quarter valued at about $35,000. GoalVest Advisory LLC raised its position in Vertiv by 87.3% during the second quarter. GoalVest Advisory LLC now owns 148 shares of the company’s stock worth $50,000 after acquiring an additional 69 shares during the last quarter. Finally, Center for Financial Planning Inc. raised its position in Vertiv by 554.2% during the first quarter. Center for Financial Planning Inc. now owns 157 shares of the company’s stock worth $39,000 after acquiring an additional 133 shares during 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.