Vertiv Holdings Co (NYSE: VRT) stock fell -1.80% on Tuesday to $15.25 against a previous-day closing price of $15.53. With 2.5 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.0 million shares. During the session, the Electrical Equipment & Parts company that operates in wider Industrials sector, reached to the highest price of $15.57 whereas the lowest price it dropped to was $15.11. The 52-week range on VRT shows that it touched its highest point at $23.10 and its lowest point at $7.76 during that stretch. It currently has a 1-year price target of $17.00. With its current market cap of 5.52 billion, VRT has annualized dividend of $0.01 while the current yield stands at 0.07%. Beta for the stock currently stands at 1.51.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VRT was up-trending over the past week, with a rise of 1.94%, but this was up by 16.06% over a month. Three-month performance surged to 15.44% while six-month performance rose 45.79%. The stock lost -28.54% in the past year, while it has gained 11.64% so far this year. A look at the trailing 12-month EPS for VRT yields 0.19 with Next year EPS estimates of 1.10. For the next quarter, that number is 0.31. This implies an EPS growth rate of 131.20% for this year and 96.79% for next year.
Float and Shares Shorts:
At present, 377.02 million VRT shares are outstanding with a float of 323.34 million shares on hand for trading. On Oct 13, 2022, short shares totaled 12.12 million, which was 3.21% higher than short shares on Sep 14, 2022. In addition to Mr. David M. Cote as the firm’s Exec. Chairman, Dr. Robert J. Johnson Ph.D. serves as its CEO & Director.
Through their ownership of 95.73% of VRT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.83% of VRT, in contrast to 41.51% held by mutual funds. Shares owned by individuals account for 18.58%. As the largest shareholder in VRT with 9.14% of the stake, Barrow, Hanley, Mewhinney & Strau holds 34,474,177 shares worth 34,474,177. A second-largest stockholder of VRT, The Vanguard Group, Inc., holds 26,411,468 shares, controlling over 7.00% of the firm’s shares. Starboard Value LP is the third largest shareholder in VRT, holding 18,031,053 shares or 4.78% stake. With a 3.83% stake in VRT, the Hardman Johnston Global Equity is the largest stakeholder. A total of 14,445,751 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.44% of VRT stock, is the second-largest Mutual Fund holder. It holds 9,212,615 shares valued at 125.84 million. Vanguard Small Cap Index Fund holds 2.06% of the stake in VRT, owning 7,777,250 shares worth 106.24 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VRT since 11 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With VRT analysts setting a high price target of $26.00 and a low target of $13.00, the average target price over the next 12 months is $17.64. Based on these targets, VRT could surge 70.49% to reach the target high and fall by -14.75% to reach the target low. Reaching the average price target will result in a growth of 15.67% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. VRT will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of $0.58 being high and $0.54 being low. For VRT, this leads to a yearly average estimate of $0.56. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Vertiv Holdings Co surprised analysts by $0.02 when it reported $0.23 EPS against a consensus estimate of $0.21. The surprise factor in the prior quarter was $0.00. Based on analyst estimates, the high estimate for the next quarter is $0.34 and the low estimate is $0.30. The average estimate for the next quarter is thus $0.31.
Summary of Insider Activity:
Insiders traded VRT stock several times over the past three months with 14 Buys and 0 Sells. In these transactions, 72,211 shares were bought while 0 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 158,340 while 286,965 shares were sold.