It was reported on November 26, that Robert M. Wolfe as attorney-in-fact, Managing Director at Vertiv Hldgs VRT executed a significant insider sell, according to an SEC filing.

What Happened: attorney-in-fact’s decision to sell 284,965 shares of Vertiv Hldgs was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $40,105,001.

At Wednesday morning, Vertiv Hldgs shares are down by 1.52%, trading at $129.74.

Get to Know Vertiv Hldgs Better

Vertiv Holdings Co brings together hardware, software, analytics and ongoing services to ensure its customers vital applications run continuously, perform optimally and grow with their business needs. The company solves the important challenges faced by data centers, communication networks and commercial and industrial facilities with a portfolio of power, cooling and IT infrastructure solutions and services that extends from the cloud to the edge of the network. Its services include critical power, thermal management, racks and enclosures, monitoring and management, and other services. Its three business segments include the Americas, Asia Pacific; and Europe, Middle East & Africa.

Vertiv Hldgs’s Financial Performance

Revenue Growth: Vertiv Hldgs’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 18.99%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 36.48%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Vertiv Hldgs’s EPS reflects a decline, falling below the industry average with a current EPS of 0.47.

Debt Management: With a high debt-to-equity ratio of 1.72, Vertiv Hldgs faces challenges in effectively managing its debt levels, indicating potential financial strain.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 87.83 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 6.79 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 45.12, Vertiv Hldgs demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Vertiv Hldgs’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.