Vertiv (NYSE:VRT) Stock Price Down 11.1% After Analyst Downgrade

Vertiv Holdings Co. (NYSE:VRT) dropped 11.1% during mid-day trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $316.51 and last traded at $318.38. Approximately 10,240,454 shares were traded during trading, an increase of 49% from the average session volume of 6,886,338 shares. The stock had previously closed at $357.96.

A number of other equities analysts have also recently weighed in on VRT. BNP Paribas Exane assumed coverage on shares of Vertiv in a research note on Tuesday, April 14th. They set an “outperform” rating and a $345.00 price target on the stock. Citigroup boosted their price objective on shares of Vertiv from $353.00 to $414.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. Weiss Ratings lowered shares of Vertiv from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, April 24th. Mizuho set a $380.00 target price on shares of Vertiv in a report on Thursday, May 21st. Finally, HSBC started coverage on shares of Vertiv in a research report on Wednesday, March 25th. They set a “buy” rating and a $325.00 price target for the company. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $326.39.

Hedge Funds Weigh In On Vertiv

Several large investors have recently added to or reduced their stakes in the business. Basecamp Wealth Advisors LLC lifted its holdings in shares of Vertiv by 29.9% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 408 shares of the company’s stock worth $102,000 after acquiring an additional 94 shares during the period. Pacer Advisors Inc. grew its holdings in Vertiv by 108.8% in the first quarter. Pacer Advisors Inc. now owns 34,589 shares of the company’s stock valued at $8,667,000 after purchasing an additional 18,023 shares during the period. Pine Valley Investments Ltd Liability Co purchased a new stake in Vertiv in the first quarter valued at approximately $2,195,000. DV Trading LLC increased its position in Vertiv by 127.4% during the first quarter. DV Trading LLC now owns 1,321 shares of the company’s stock worth $331,000 after purchasing an additional 740 shares during the last quarter. Finally, Parallel Advisors LLC increased its position in Vertiv by 18.1% during the first quarter. Parallel Advisors LLC now owns 9,564 shares of the company’s stock worth $2,397,000 after purchasing an additional 1,463 shares during the last quarter. 89.92% of the stock is currently owned by hedge funds and other institutional investors.

Vertiv Stock Performance

The company has a market cap of $121.12 billion, a PE ratio of 79.23, a P/E/G ratio of 1.38 and a beta of 2.03. The stock’s 50 day simple moving average is $323.75 and its two-hundred day simple moving average is $253.18. The company has a quick ratio of 1.15, a current ratio of 1.49 and a debt-to-equity ratio of 0.69.

Vertiv (NYSE:VRT) last released its quarterly earnings data on Wednesday, April 22nd. The company reported $1.17 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.17. The business had revenue of $2.65 billion during the quarter, compared to the consensus estimate of $2.63 billion. Vertiv had a return on equity of 49.90% and a net margin of 14.37%.The business’s revenue for the quarter was up 30.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.64 EPS. Vertiv has set its Q2 2026 guidance at 1.370-1.430 EPS and its FY 2026 guidance at 6.300-6.400 EPS. As a group, research analysts anticipate that Vertiv Holdings Co. will post 6.36 earnings per share for the current year.

Vertiv Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Monday, June 15th will be issued a $0.0625 dividend. The ex-dividend date is Monday, June 15th. This represents a $0.25 annualized dividend and a yield of 0.1%. Vertiv’s dividend payout ratio (DPR) is presently 6.28%.

About Vertiv

Vertiv is a global provider of critical digital infrastructure and continuity solutions for data centers, communication networks and commercial and industrial environments. Headquartered in Columbus, Ohio, the company designs, manufactures and services equipment and software that support power availability, thermal management and IT infrastructure management for a broad set of end markets, including hyperscale and enterprise data centers, colocation providers, telecom operators and industrial customers.

The company’s product portfolio includes uninterruptible power supplies (UPS), power distribution units (PDUs), battery and DC power systems, precision cooling and thermal management equipment, racks and enclosures, and integrated modular infrastructure.