Here's Why Vertiv Shares Are Soaring Today

Here's Why Vertiv Shares Are Soaring Today
  • Vertiv Holdings Co VRT shareholder and activist investor Starboard disclosed a 7.4% active stake in the company.
  • Vertiv is a supplier of equipment and services for data centers.
  • Starboard is likely seeking operational improvements at Vertiv, Bloomberg reports.
  • Also Read: Activist Investor Starboard Discloses Stake In Salesforce, Shares Soar
  • Starboard had discussions with Vertiv's leadership and appears to support its focus on improving profitability under Chair David Cote and Giordano Albertazzi, who will take over as CEO in 2023.
  • Vertiv, previously a division of Emerson Electric Company  EMR, went public in 2020 via a merger with a SPAC backed by Goldman Sachs Group Inc. and led by Cote.
  • Vertiv's shares had fallen 54% this year through October 19 amid a pullback in spending for data centers, higher costs, and lingering supply chain issues. 
  • In October, Vertiv cut its profit forecast for the fourth quarter, primarily due to foreign exchange headwinds.
  • The company revised its Q4 adjusted operating profit guidance to $220 million - $240 million, down $22.5 million at the mid-point of the prior range.
  • Price Action: VRT shares traded higher by 15.50% at $13.17 on the last check Thursday.

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