Vertiv (NYSE:VRT) Shares Gap Down - What's Next?

Vertiv Holdings Company (NYSE:VRT) experienced a noticeable drop in share price before the market opened on Thursday. The stock, which had closed at $87.89, saw an opening price of $82.65. As of the latest trading session, Vertiv shares were priced at $83.63, with a trading volume of 1,706,091 shares.

Analyst Ratings Changes

In recent evaluations, several analysts have revised their ratings for Vertiv's shares. Melius Research downgraded Vertiv from a "buy" to a "hold" rating, setting a price target of $125.00. Conversely, Citigroup raised their target price for Vertiv from $141.00 to $155.00 and maintained a "buy" rating. Similarly, the Goldman Sachs Group uplifted their price target for Vertiv from $126.00 to $140.00 with a "buy" recommendation. Mizuho also increased its price target from $125.00 to $145.00, assigning an "outperform" rating. Additionally, Fox Advisors initiated coverage for Vertiv with an "equal weight" rating. Currently, four research analysts have rated the stock as a hold, while eleven have issued buy ratings. According to MarketBeat.com, the average consensus rating for Vertiv is "Moderate Buy" with a target price of $137.14.

Vertiv Price Performance

Vertiv's stock is currently under pressure, with a 50-day simple moving average of $116.43 and a 200-day simple moving average of $110.63. The company has a market capitalization of $31.06 billion. Relevant metrics include a P/E ratio of 63.73, a price-to-earnings-growth ratio of 1.07, and a beta of 1.71. Vertiv reports a debt-to-equity ratio of 1.19, with a quick ratio of 1.02 and a current ratio of 1.65. The latest quarterly earnings, released on February 12, showcased earnings per share (EPS) of $0.99, exceeding analysts' expectations of $0.84 by $0.15. The company noted a return on equity of 61.41% and a net margin of 6.19%. Analysts predict that Vertiv will report an average EPS of 3.59 for the current fiscal year.

Institutional Investors Weigh In On Vertiv

Recent changes in institutional ownership reveal interesting trends. For instance, Vanguard Group Inc. increased its holdings by 3.5% in the fourth quarter, acquiring an additional 1,244,780 shares for a total of 36,356,089 shares valued at around $4.13 billion. Jennison Associates LLC grew its investment by a substantial 68.6% during the same period, bringing its total to 7,754,347 shares worth approximately $880.97 million. State Street Corp also expanded its position by 4.2%, now owning 7,635,081 shares valued at $759.61 million after an additional purchase of 308,704 shares. Moreover, Geode Capital Management LLC increased its stake by 1.7%, owning 6,050,965 shares valued at about $688.26 million. Notably, 89.92% of Vertiv's shares are held by institutional investors.

About Vertiv

Vertiv Holdings Co, along with its subsidiaries, specializes in designing, manufacturing, and servicing essential digital infrastructure technologies and lifecycle services for data centers, communication networks, as well as commercial and industrial environments across various regions, including the Americas, Asia-Pacific, Europe, the Middle East, and Africa.

Should You Invest $1,000 in Vertiv Right Now?

Before making investment decisions regarding Vertiv, it is important to consider a broader perspective. Market analysts keep track of high-performing stocks that they recommend to their clients daily. Currently, MarketBeat has pointed out five stocks that top analysts believe are better buys than Vertiv.

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