Vertiv (NYSE:VRT) Shares Down 2.7% – Here’s Why

Vertiv Holdings Co. (NYSE:VRT)’s stock price dropped 2.7% during mid-day trading on Thursday . The stock traded as low as $172.35 and last traded at $177.7010. Approximately 6,050,233 shares changed hands during mid-day trading, an increase of 17% from the average daily volume of 5,185,279 shares. The stock had previously closed at $182.56.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on VRT. Deutsche Bank Aktiengesellschaft set a $216.00 price objective on shares of Vertiv and gave the company a “buy” rating in a research note on Wednesday, October 15th. UBS Group increased their price target on Vertiv from $173.00 to $201.00 and gave the company a “buy” rating in a research note on Thursday, October 23rd. KGI Securities upgraded Vertiv from a “hold” rating to an “outperform” rating in a research report on Thursday, October 23rd. JPMorgan Chase & Co. cut their price objective on Vertiv from $230.00 to $225.00 and set an “overweight” rating for the company in a report on Friday, January 16th. Finally, Wolfe Research cut Vertiv from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, December 9th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Vertiv has an average rating of “Moderate Buy” and a consensus price target of $187.89.

Vertiv Stock Down 2.7%

The company has a market capitalization of $67.94 billion, a price-to-earnings ratio of 67.06, a price-to-earnings-growth ratio of 1.17 and a beta of 2.08. The company has a quick ratio of 1.43, a current ratio of 1.83 and a debt-to-equity ratio of 0.83. The business has a 50-day moving average price of $174.24 and a 200-day moving average price of $160.35.

Vertiv Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, December 18th. Stockholders of record on Tuesday, November 25th were given a $0.0625 dividend. This represents a $0.25 annualized dividend and a dividend yield of 0.1%. This is an increase from Vertiv’s previous quarterly dividend of $0.04. The ex-dividend date of this dividend was Tuesday, November 25th. Vertiv’s payout ratio is 9.43%.

Insider Activity

In related news, EVP Stephen Liang sold 5,501 shares of the company’s stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $170.48, for a total value of $937,810.48. Following the completion of the sale, the executive vice president owned 4,050 shares in the company, valued at approximately $690,444. This represents a 57.60% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.63% of the stock is owned by corporate insiders.

Institutional Trading of Vertiv

Several hedge funds and other institutional investors have recently modified their holdings of VRT. Empowered Funds LLC raised its position in Vertiv by 25.9% during the first quarter. Empowered Funds LLC now owns 11,557 shares of the company’s stock valued at $834,000 after buying an additional 2,377 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Vertiv during the second quarter worth approximately $567,000. Clarius Group LLC purchased a new position in Vertiv during the second quarter valued at approximately $246,000. DAVENPORT & Co LLC acquired a new position in Vertiv in the 2nd quarter valued at approximately $270,000. Finally, Valeo Financial Advisors LLC purchased a new stake in Vertiv in the 2nd quarter worth approximately $269,000. Institutional investors and hedge funds own 89.92% of the company’s stock.

Vertiv Company Profile

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.