Vertiv Holdings Co (NYSE: VRT) stock fell -0.70% on Friday to $38.17 against a previous-day closing price of $38.44. With 7.12 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.36 million shares. During the session, the Electrical Equipment & Parts company that operates in wider Industrials sector, reached to the highest price of $38.47 whereas the lowest price it dropped to was $37.50. The 52-week range on VRT shows that it touched its highest point at $40.41 and its lowest point at $9.48 during that stretch. It currently has a 1-year price target of $42.30. With its current market cap of 14.63 billion, VRT has annualized dividend of $0.01 while the current yield stands at 0.03%. Beta for the stock currently stands at 1.41.
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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 down-trending over the past week, with a drop of -2.63%, but this was up by 13.13% over a month. Three-month performance surged to 68.89% while six-month performance rose 180.66%. The stock gained 192.27% in the past year, while it has gained 179.43% so far this year. A look at the trailing 12-month EPS for VRT yields 0.48 with Next year EPS estimates of 1.96. For the next quarter, that number is 0.44. This implies an EPS growth rate of -39.00% for this year and 22.21% for next year. EPS is expected to grow by 64.38% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 19.28%.
Float and Shares Shorts:
At present, 379.94 million VRT shares are outstanding with a float of 327.22 million shares on hand for trading. On Aug 30, 2023, short shares totaled 8.8 million, which was 2.31% higher than short shares on Jul 30, 2023. In addition to Mr. David M. Cote as the firm’s Exec. Chairman, Mr. Giordano Albertazzi serves as its CEO & Director.
Institutional Ownership:
Through their ownership of 89.21% of VRT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 8.89% of VRT, in contrast to 40.52% held by mutual funds. Shares owned by individuals account for 40.47%. As the largest shareholder in VRT with 8.20% of the stake, Barrow, Hanley, Mewhinney & Strau holds 31,200,595 shares worth 31,200,595. A second-largest stockholder of VRT, The Vanguard Group, Inc., holds 27,759,169 shares, controlling over 7.30% of the firm’s shares. Starboard Value LP is the third largest shareholder in VRT, holding 14,311,000 shares or 3.76% stake. With a 3.80% 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 ETF, which owns about 2.80% of VRT stock, is the second-largest Mutual Fund holder. It holds 10,667,814 shares valued at 420.21 million. Vanguard Small Cap Index Fund holds 2.34% of the stake in VRT, owning 8,919,041 shares worth 351.32 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, VRT reported revenue of $1.40B and operating income of $29.90M. The EBITDA in the recently reported quarter was $106.90M and diluted EPS was $0.05.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VRT since 0 analysts follow the stock currently. 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 $50.00 and a low target of $32.00, the average target price over the next 12 months is $41.75. Based on these targets, VRT could surge 30.99% to reach the target high and fall by -16.16% to reach the target low. Reaching the average price target will result in a growth of 9.38% 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.
Summary of Insider Activity:
Insiders traded VRT stock several times over the past three months with 0 Buys and 8 Sells. In these transactions, 0 shares were bought while 24,111,029 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 107,212 while 26,348,586 shares were sold.
