Vertiv (NYSE:VRT) Stock Falls 3.3% – Here’s What Happened

Vertiv Holdings Co. (NYSE:VRT)’s stock price dropped 3.3% during trading on Tuesday. The stock traded as low as $188.50 and last traded at $193.93. Approximately 6,596,926 shares traded hands during trading, an increase of 0% from the average daily volume of 6,574,396 shares. The stock had previously closed at $200.47.

Vertiv News Summary

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

Several analysts recently issued reports on the stock. Roth Capital set a $345.00 price target on shares of Vertiv in a report on Thursday, October 29th. Oppenheimer restated an “outperform” rating and issued a $325.00 target price (down from $353.00) on shares of Vertiv in a research note on Thursday, July 30th. BNP Paribas Exane lowered their price objective on Vertiv from $380.00 to $365.00 and set an “outperform” rating for the company in a report on Friday, July 31st. Piper Sandler set a $375.00 price objective on Vertiv in a research note on Wednesday, July 29th. Finally, Glj Research reduced their target price on Vertiv from $188.00 to $187.00 and set a “sell” rating on the stock in a report on Monday, November 2nd. Two equities research 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. Based on data from MarketBeat.com, Vertiv currently has an average rating of “Moderate Buy” and a consensus target price of $337.78.

Vertiv Trading Down 3.3%

The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.01 and a current ratio of 1.39. The company has a 50 day simple moving average of $235.86 and a two-hundred day simple moving average of $269.84. The company has a market cap of $74.66 billion, a PE ratio of 36.25, a PEG ratio of 0.65 and a beta of 2.11.

Vertiv (NYSE:VRT) last posted its quarterly earnings results on Wednesday, October 28th. The company reported $2.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.82 by $0.39. The business had revenue of $4.31 billion during 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 firm’s 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. Sell-side analysts forecast that Vertiv Holdings Co. will post 7.17 EPS for the current year.

Vertiv Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Monday, September 14th were paid 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 4.67%.

Insider Activity

In other Vertiv news, Director Edward Monser sold 15,287 shares of the business’s stock in a transaction that occurred 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 directly owned 16,500 shares of the company’s stock, valued at $4,188,030. The trade was a 48.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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

Large investors have recently made changes to their positions in the stock. State Street Corp lifted its position in Vertiv by 4.5% during the 2nd quarter. State Street Corp now owns 16,531,530 shares of the company’s stock worth $5,535,087,000 after acquiring an additional 704,970 shares during the last quarter. Wellington Management Group LLP increased its stake 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 worth $1,270,428,000 after purchasing an additional 468,380 shares during the period. Arrowstreet Capital Limited Partnership lifted its position in shares of Vertiv by 1.9% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,709,276 shares of the company’s stock worth $678,890,000 after purchasing an additional 51,328 shares during the last quarter. Bank of New York Mellon Corp boosted its stake in Vertiv by 33.7% during the 1st quarter. Bank of New York Mellon Corp now owns 2,410,642 shares of the company’s stock valued at $604,059,000 after purchasing an additional 608,176 shares during the period. Finally, Legal & General Group Plc boosted its stake in Vertiv by 1.1% during the 2nd quarter. Legal & General Group Plc now owns 2,138,967 shares of the company’s stock valued at $716,169,000 after purchasing an additional 23,444 shares during the period. Institutional investors own 89.92% of the company’s stock.

Vertiv Company Profile

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.