Vertiv Holdings Co. (NYSE: VRT) – Suitable For Long Term Buy?


    Fidelity Management & Research Co.. recently announced the acquisition of new stake in Vertiv Holdings Co. (NYSE:VRT). The institutional investor has increased its shareholding in the Industrials company by 55.28% to 14.95 million shares with purchase of 5.32 million shares. This fresh investment now brings its stake to 4.55% valued currently at $216.76 million. In addition, The Vanguard Group, Inc. raised its holdings by 14.07 million to 14.07 million shares. And Goldman Sachs & Co. LLC (Private.. has lifted its position by 5.31% or 0.46 million shares – to 9.12 million shares.

    With over 2.55 million Vertiv Holdings Co. (VRT) shares trading Tuesday and a closing price of $16.92 on the day, the dollar volume was approximately $43.21 million. The shares have shown a positive weekly performance of 9.16% and its price on 08/25/20 gained nearly 2.55%. Currently, there are 328.41M common shares owned by the public and among those 265.43M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for VRT have a consensus price objective of $20.80. The analysts have set the share’s price value over the next 12 months at a high of $25.00 and a low of $19.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Vertiv Holdings Co. stock is 1.80 for the next 12 months. The average price target is 14.33% above its last price level and an upside to the estimated low will see the stock gain 10.95% over that period. But an upside of 32.32% will see the stock hit the forecast high price target while mean target price for the stock is $20.00.

    Insiders at the company have transacted a total of 0 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 0 of these insider trades were purchases, accounting for 0 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

    The top 3 mutual fund holders in Vertiv Holdings Co. are Baron Small Cap Fund, Vanguard Total Stock Market Index, and Fidelity Series Large Cap Stock F. Baron Small Cap Fund owns 7.0 million shares of the company’s stock, all valued at over $101.5 million. Vanguard Total Stock Market Index sold 3677.0 shares to see its total holdings shrink to 5.63 million shares valued at over $81.6 million and representing 1.71% of the shares outstanding. Fidelity Series Large Cap Stock F now owns shares totaling to 1.50% of the shares outstanding.

    Shares of Vertiv Holdings Co. (NYSE: VRT) opened at $16.53, up $0.03 from a prior closing price of $16.50. However, the script later closed the day at $16.92, up 2.55%. The company’s stock has a 5-day price change of 9.16% and 35.90% over the past three months. VRT shares are trading 53.40% year to date (YTD), with the 12-month market performance up to 65.07% higher. It has a 12-month low price of $4.75 and touched a high of $17.23 over the same period. Currently, 2.55 million shares have been traded, compared to an average intraday trading volume of 3.27 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 7.70%, 16.44%, and 42.69% respectively.

    Institutional ownership of Vertiv Holdings Co. (NYSE: VRT) shares accounts for 88.70% of the company’s 328.41M shares outstanding. Mutual fund holders own 29.31%, while other institutional holders and individual stakeholders account for 37.58% and 16.12% respectively.

    It has a market capitalization of $5.96B. The earnings-per-share (ttm) stands at -$1.05. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.32% over the week and 3.56% over the month.

    Analysts forecast that Vertiv Holdings Co. (VRT) will achieve an EPS of $0.27 for the current quarter, $0.35 for the next quarter and $1.12 for 2021. The lowest estimate earnings-per-share for the quarter is $0.25 while analysts give the company a high EPS estimate of $0.31. Earnings per share for the fiscal year are expected to decrease by -12.70%, and 49.93% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Vertiv Holdings Co. (VRT) as a “Strong Buy” at a consensus score of 1.80. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 0 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the VRT, a number of firms have released research notes about the stock. BofA Securities stated their Buy rating for the stock in a research note on August 20, 2020, with the firm’s price target at $20.


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