Vertiv (VRT) announced a cash dividend of 2.5 cents per share for shareholders (as of Sept. 17), payable on Sept. 26. Its current dividend yield of 0.13%, and its payout ratio is 5%, which we believe is sustainable given VRT's improved liquidity position. As of June 30, 2024, Vertiv's cash balance totaled $579.7 million. Cash flow from operating activities was $378.4 million and free cash flow was $333.4 million for the second quarter. Overall liquidity strengthened to $1.2 billion. VRT Shares Trade at a Pr ...

Vertiv Holdings Co. (VRT) ended the recent trading session at $75.06, demonstrating a -0.19% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.3%. Prior to today's trading, shares of the company had gained 8.56% over the past month. This has outpaced the Computer and Technology sector's gain of 1.63% and the S&P 500's gain of 3 ...

Dean Mouhtaropoulos/Getty Images News Introduction A SPAC (special purpose acquisition company) was touted as a quick road for companies to IPO and that were vetted by institutional investors. Unfortunately, the company founders and anchor investors had the incentive to "exaggerate" projections driving shares to unreasonable valuations and then selling out. The majority of SPACs have nearly disappeared, trading, with luck, down 90% from placement. Some have succeeded and Vertiv Holdings Co (NYSE:VRT) is one ...

1 IF D H HT T 100 - 100 1 i T 1 Pgiam/iStock via Getty Images Seeking Alpha Investment thesis My initial bullish thesis about Vertiv (NYSE:VRT) did not age well. The stock dropped by about 16% since mid-May. Over the same period, the S&P 500 rallied by almost 8%. My analysis suggests that fundamentals are still strong. Therefore, the decline is likely more about market sentiment and the stock's inherent volatility. I think so because the company demonstrates strong performance and the AI momentum for the bu ...

Shares of Vertiv Holdings Co. (VRT) have gained 0.4% over the past four weeks to close the last trading session at $76.78, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $102.30 indicates a potential upside of 33.2%. The mean estimate comprises 10 short-term price targets with a standard deviation of $7.33. While the lowest estimate of $92 indicates a 19.8% increase from the cu ...

Vertiv (VRT) shares have surged 62.4% year to date (YTD), outperforming the broader Zacks Computer & Technology sector's return of 22.1% and the Zacks IT Services industry's gain of 2.4%. Vertiv offers cooling and power management infrastructure technologies primarily addressing data center providers. It is riding on strong AI-driven order growth. The growing focus on thermal management by data center providers bodes well for Vertiv. This has helped VRT outperform its industry peers over the same timeframe, ...

Core Viewpoint - The article discusses the lack of positions held by Parkev Tatevosian, CFA, and The Motley Fool in the mentioned stocks, emphasizing their disclosure policy and potential compensation for promoting services [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool also has no position in any of the stocks mentioned [1] - The disclosure policy of The Motley Fool is highlighted, indicating transparency in their operations [1]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Vertiv Holdings Co. (VRT), and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][3]. Brokerage Recommendations - Vertiv currently has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy, based on recommendations from 11 brokerage firms, all of which are Strong Buy [2][12]. - Despite the Strong Buy recommendation, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often fail to guide investors effectively [3][8]. Analyst Bias - Brokerage analysts tend to exhibit a strong positive bias in their ratings due to vested interests, with five "Strong Buy" recommendations for every "Strong Sell" [4][8]. - This bias can mislead investors, as the ratings are often more favorable than warranted by the underlying research [8]. Zacks Rank Comparison - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [6][9]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not be up-to-date [7][10]. Earnings Estimates for Vertiv - The Zacks Consensus Estimate for Vertiv has increased by 6.1% over the past month to $2.58, indicating growing optimism among analysts regarding the company's earnings prospects [11]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Vertiv, suggesting that the Buy-equivalent ABR may be a useful guide for investors [12].

AI Adjacent Companies and Market Reaction - Vertiv Holdings, Constellation Energy, and NuScale Power surged in Wednesday's trading, with shares up 9 9%, 11 6%, and 6 5% respectively [1] - These companies are considered "AI adjacent" due to their potential to benefit from the increasing power and electricity demands of AI data centers [2] - The recent sell-off in AI-related stocks led to significant pullbacks, with Constellation down 27%, Vertiv down 29%, and NuScale down 44% from their all-time highs [8] Earnings and Commentary Impact - Microsoft and AMD's strong earnings reports and positive AI outlooks alleviated fears of slowing AI growth, boosting AI-adjacent stocks [3][9] - Microsoft CEO Satya Nadella highlighted strong demand for AI-powered products, with CoPilot seats doubling quarter over quarter and continued investment in Azure AI training [10] - AMD exceeded expectations with 115% year-over-year data center growth and raised its 2024 MI300 AI chip sales guidance to $4 5 billion from $4 billion [11] Company-Specific Developments - Vertiv reported strong Q2 results and raised full-year guidance, despite forecasting a sequential decline in Q3 orders, citing strong demand pipeline [5] - Constellation Energy and NuScale Power, both nuclear power-focused companies, saw significant year-to-date gains of 45% and 190% respectively, despite recent sell-offs [6] - NuScale faced a short-seller attack questioning its technology and SEC investigation claims, but the company denied the allegations and stated regulatory inquiries were routine [7] Market Outlook - The recent pullback in AI-related stocks is viewed as a healthy correction rather than the start of a tech crash, with long-term growth prospects remaining intact [12] - The earnings season reinforced the AI growth narrative, suggesting potential entry points for investors with a long-term perspective [12]

sitox/E+ via Getty Images We previously covered Vertiv Holdings (NYSE:VRT) in June 2024, discussing its well-diversified offerings across power management/ storage, thermal management through chilled-water/ liquid cooling solutions, integrated server rack systems, and operating stacks, one that is particularly critical during the ongoing cloud transition and generative AI boom. Combined with its highly strategic partnership with Nvidia (NVDA) and Intel (INTC) for the next-gen AI data center platforms, we ha ...