Vistra (NYSE:VST) Shares Drop 3.6% Following Insider Sales

Shares of Vistra Corp. (NYSE:VST) experienced a 3.6% decline during mid-day trading on Wednesday after an insider sold shares in the company. The stock price reached a low of $155.35 before recovering slightly to close at $156.80. A total of 1,308,796 shares changed hands during this period, marking a significant drop of 81% from the average trading volume of 6,867,301 shares. The previous close for the stock was $162.66.

Recent Insider Transactions

Specifically, Scott A. Hudson, the company’s Executive Vice President, sold 115,000 shares on Monday, November 25th, at an average price of $164.16, totaling $18,878,400. Following this transaction, Hudson holds 254,932 shares valued at approximately $41,849,637. This sale represents a 31.09% reduction in his ownership of Vistra stock. Additionally, another EVP, Stephen J. Muscato, sold 207,100 shares on Friday, November 22nd, at an average price of $161.34 for a total of $33,413,514. Muscato now owns 318,287 shares valued at about $51,352,424. This sale also indicates a notable drop in ownership of 39.42%.

Analyst Ratings Changes

In recent weeks, Vistra has been discussed in several analyst reports. Guggenheim raised its price target from $133.00 to $177.00 and issued a "buy" rating. BMO Capital Markets increased its price target from $146.00 to $147.00 while maintaining an "outperform" rating. Conversely, UBS Group reduced its price objective from $157.00 to $150.00 but still rated the stock as a buy. Royal Bank of Canada increased its target from $105.00 to $141.00 with an outperform rating. BNP Paribas recently started covering Vistra with an outperform rating and set a price target of $231.00. Currently, ten analysts recommend buying the stock, and data from MarketBeat suggests an average target price of $149.10.

Stock Performance Overview

Vistra's stock has a market capitalization of $53.35 billion, a price-to-earnings (P/E) ratio of 29.25, and a price-to-earnings growth (P/E/G) ratio of 1.98. The stock's beta stands at 1.09, indicating some volatility compared to the market. Its 50-day moving average price is $129.97, while the 200-day moving average price is $101.03. The company’s financial metrics include a quick ratio of 0.99, a current ratio of 1.11, and a debt-to-equity ratio of 4.68.

Dividend Information

Vistra also announced a quarterly dividend which will be disbursed on Tuesday, December 31st. Shareholders on record as of December 20th will receive a dividend of $0.221 per share, up from the previous quarterly dividend of $0.22. This equates to an annual dividend of $0.88, giving a yield of 0.56%. Currently, the dividend payout ratio stands at 16.42%. Additionally, Vistra's board approved a share buyback program on November 7th that allows the company to repurchase up to $1.00 billion of its own shares, representing about 2.1% of its total shares. Such buybacks often indicate that leadership believes the stock is undervalued.

Institutional Investor Activity

Several large investors have recently acquired or sold shares of VST. Empire Life Investments Inc. established a new position during the third quarter with an investment of approximately $23 million. Terra Nova Asset Management LLC also purchased a new stake in Vistra valued at around $842,000. Czech National Bank increased its holdings in Vistra by 12.4%, now owning 69,987 shares after acquiring an additional 7,747 shares. CIBC Asset Management Inc. also raised its position by 12.4%, owning 50,380 shares after purchasing 5,575 shares. Viking Fund Management LLC also made a new investment during the third quarter. Overall, institutional investors and hedge funds control around 90.88% of Vistra's stock.

About Vistra Corp.

Vistra Corp. is a comprehensive retail electricity and power generation company operating through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. The company provides electricity and natural gas services to residential, commercial, and industrial clients throughout the United States and the District of Columbia.

Conclusion

Despite recent challenges, analysts maintain a generally positive outlook on Vistra, though insider selling may create apprehension among investors. The company's financial strength, dividend payments, and strategic buyback initiatives, along with strong institutional backing, point to a potentially robust future.

Vistra, Stock, Insider