Analysts have assigned a consensus price target of $180.48 for Vertiv Holdings Co. (NYSE:VRT), reflecting a “Moderate Buy” recommendation according to MarketBeat.com. This assessment comes from twenty-nine brokerages currently covering the stock, with varying opinions among them. Specifically, one analyst recommends selling the stock, six suggest holding, while twenty analysts advocate for buying, including two who have issued a strong buy rating.
Price Predictions and Analyst Ratings
The average twelve-month price objective from analysts who have issued reports in the past year stands at $180.48. Recent commentary from investment firms indicates a bullish sentiment towards Vertiv. For example, Evercore ISI raised its price target from $180.00 to $200.00 on October 20, 2023, maintaining an “outperform” rating. Similarly, Deutsche Bank Aktiengesellschaft set a target of $216.00 with a “buy” rating on October 15, 2023.
Additionally, KGI Securities upgraded Vertiv from a “hold” to an “outperform” rating on October 23, 2023, while Mizuho increased its price target from $165.00 to $198.00 on October 17, 2023. Contrarily, Wolfe Research downgraded the stock from “outperform” to “peer perform” on December 9, 2023.
Recent Financial Performance
On October 22, 2023, Vertiv released its quarterly earnings, reporting earnings per share (EPS) of $1.24, surpassing analysts’ estimates of $0.99 by $0.25. The company’s return on equity was an impressive 50.82%, and it achieved a net margin of 10.67%. Vertiv’s revenue for the quarter reached $2.68 billion, exceeding forecasts of $2.59 billion. This marks a significant increase of 29% compared to the same period last year, where it posted $0.76 EPS.
Looking forward, Vertiv has projected its Q4 2025 EPS guidance to be between $1.230 and $1.290, with a full-year 2025 EPS guidance of $4.070 to $4.130. Analysts expect the company to report an EPS of $3.59 for the current fiscal year.
The company has also announced a quarterly dividend increase, recently declaring a payment of $0.0625 per share, up from its previous dividend of $0.04. This dividend was paid on December 18, 2023, to investors recorded as of November 25, 2023, representing a $0.25 annualized dividend and a yield of 0.2%. The payout ratio currently stands at 9.43%.
Insider Activity and Institutional Holdings
In insider trading news, Executive Vice President Stephen Liang sold 5,501 shares of Vertiv on November 24, 2023, at an average price of $170.48, totaling approximately $937,810. Following this transaction, Liang holds 4,050 shares valued at around $690,444, marking a significant decrease of 57.60% in his position.
Institutional investors continue to play a crucial role in Vertiv’s stock ownership, holding approximately 89.92% of the company’s shares. Notable movements include a remarkable increase in holdings by Financial Management Professionals Inc., which boosted its position by 1,560% during the third quarter, now owning 166 shares worth $25,000. Other institutions, such as Pacer Advisors Inc. and True Wealth Design LLC, have also increased their stakes significantly.
About Vertiv Holdings Co.
Vertiv, headquartered in Columbus, Ohio, is a leading provider of critical digital infrastructure and continuity solutions tailored for data centers, communication networks, and various commercial and industrial environments. The company specializes in designing, manufacturing, and servicing equipment and software that enhance power availability, thermal management, and IT infrastructure management. Its product offerings include uninterruptible power supplies (UPS), power distribution units (PDUs), precision cooling systems, and integrated modular infrastructure.
Investors and analysts are keenly watching Vertiv as it continues to navigate the evolving landscape of digital infrastructure. The company’s strong financial performance and strategic insights from analysts suggest a promising outlook in the coming months.
