Vertiv Holdings Co. [VRT] is 53.13% higher this YTD. Is it still time to buy?

Vertiv Holdings Co. [NYSE: VRT] traded at a high on 08/05/20, posting a 11.12 gain after which it closed the day’ session at $16.89. The company report on August 5, 2020 that Vertiv Delivers Strong Second Quarter Operating Performance.

Vertiv Holdings Co (NYSE: VRT), a global provider of critical digital infrastructure and continuity solutions, reported second quarter 2020 net sales of $1,006 million, a decline of $128 million or 11.3% – 8.8% organically – from last year’s second quarter. This sales decline was primarily driven by negative COVID-19 impacts and the year-over-year timing of larger projects in the Americas and EMEA. Net sales were relatively flat in APAC, but up 4% organically – indicative of that region’s continued transition from negative effects of the epidemic. Second quarter net income of $26 million increased $45 million from last year primarily driven by $49 million lower interest expense and a $37 million reduction in selling, general and administrative expenses, partially offset by $20 million lower gross profit driven by lower net sales, a $12 million impairment charge for capitalized software and an $8 million increase in foreign currency losses. Lower selling, general and administrative expenses were primarily due to a $30 million benefit from COVID-19 fixed cost actions initiated at the beginning of the second quarter. Adjusted EBITDA of $145 million declined only $2 million from last year despite a $128 million reduction in net sales as adjusted EBITDA margin of 14.4% increased 150 basis points from last year’s second quarter primarily driven by COVID-19 fixed cost actions and the continued benefit from purchasing and pricing initiatives. Orders in the second quarter were up over 2% – up 5% organically – from the second quarter of 2019, and backlog was a record high $1.8 billion at the end of June. Backlog continues to build, driven by strong orders from colocation, hyperscale and telecommunication providers which typically have larger projects with longer lead times for deployment.

“I’m pleased with the positive operational strides we made during the second quarter as we continue to navigate the on-going and unpredictable global COVID-19 pandemic. Our second quarter results, in part, reflect the benefits of the early actions we took to mitigate the impact of the pandemic,” said Rob Johnson, Vertiv Chief Executive Officer. “In the quarter, we continued to see high demand on data centers and telecommunication networks – driven by applications such as video and on-line education, business models shifting online, increasing digital healthcare needs and the exponential growth in the use of digital entertainment. We are well positioned to be the partner-of-choice for those data centers who need a broad range of products and ongoing services to maintain their operations under increased demand.

The results of the trading session contributed to over 4644400 shares changing hands. Over the past one week, the price volatility of Vertiv Holdings Co. stands at 4.13% while the volatility over the past one month is 3.04%.

The market cap for VRT stock reached $5.74 billion, with 240.66 million shares outstanding and 148.78 million shares in the current float. Compared to the average trading volume of 2.92M shares, VRT reached a trading volume of 4644400 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Vertiv Holdings Co. [VRT]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for VRT shares is $17.33 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on VRT stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

The Average True Range (ATR) for Vertiv Holdings Co. is set at 0.60, with the Price to Sales ratio for VRT stock in the period of the last 12 months amounting to 6.39. The Price to Book ratio for the last quarter was 12.24.

How has VRT stock performed recently?

Vertiv Holdings Co. [VRT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 20.64. With this latest performance, VRT shares gained by 24.01% in over the last four-week period, additionally plugging by 32.06% over the last 6 months – not to mention a rise of 65.91% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for VRT stock in for the last two-week period is set at 77.31, with the RSI for the last a single of trading hit 87.61, and the three-weeks RSI is set at 74.09 for Vertiv Holdings Co. [VRT]. The present Moving Average for the last 50 days of trading for this stock 13.86, while it was recorded at 15.17 for the last single week of trading, and 11.47 for the last 200 days.

Vertiv Holdings Co. [VRT]: Deeper insight into the fundamentals

Vertiv Holdings Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.50.

Insider trade positions for Vertiv Holdings Co. [VRT]

There are presently around $4,293 million, or 82.60% of VRT stock, in the hands of institutional investors. The top three institutional holders of VRT stocks are: PLATINUM EQUITY ADVISORS, LLC/DE with ownership of 118,261,955, which is approximately New of the company’s market cap and around 0.30% of the total institutional ownership; EMINENCE CAPITAL, LP, holding 17,793,587 shares of the stock with an approximate value of $300.53 million in VRT stocks shares; and GOLDMAN SACHS GROUP INC, currently with $269.68 million in VRT stock with ownership of nearly New of the company’s market capitalization.

89 institutional holders increased their position in Vertiv Holdings Co. [NYSE:VRT] by around 226,608,421 shares. Additionally, 52 investors decreased positions by around 36,158,463 shares, while 5 investors held positions by with 8,584,628 shares. The mentioned changes placed institutional holdings at 254,182,256 shares, according to the latest SEC report filing. VRT stock had 66 new institutional investments in for a total of 201,215,219 shares, while 33 institutional investors sold positions of 13,528,301 shares during the same period.

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