VAN JAN DOKKUM At Vertiv Hldgs Decides to Exercises Options Worth $4.55M

A large exercise of company stock options by VAN JAN DOKKUM, Board Member at Vertiv Hldgs VRT was disclosed in a new SEC filing on November 26, as part of an insider exercise.

What Happened: The latest Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission uncovered DOKKUM, Board Member at Vertiv Hldgs, exercising stock options for 38,647 shares of VRT. The total transaction was valued at $4,547,573.

During Wednesday's morning session, Vertiv Hldgs shares down by 1.53%, currently priced at $129.72. Considering the current price, DOKKUM's 38,647 shares have a total value of $4,547,573.

About Vertiv Hldgs

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: Financial Performance Dissected

Revenue Growth: Vertiv Hldgs displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 18.99%. This indicates a notable 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 36.48%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Vertiv Hldgs's EPS is below the industry average. The company faced challenges with a current EPS of 0.47. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.72, caution is advised due to increased financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 87.83, Vertiv Hldgs's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.79 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Vertiv Hldgs's EV/EBITDA ratio stands at 45.12, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Uncovering the Importance of Insider Activity

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Exploring Key Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

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

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