Vistra (NYSE:VST) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Vistra from “hold” to “strong sell,” despite the broader analyst consensus remaining “Moderate Buy,” with 16 Buy ratings and an average price target of $217.61.
• Vistra shares opened at $154.26, while the company’s latest quarterly results missed expectations: EPS was $0.76 versus the $1.61 consensus, and revenue was $4.02 billion versus estimates of $5.46 billion.
• Analysts continue to view Vistra’s generation assets as a potential beneficiary of rising electricity demand from AI and data centers, but the stock’s high leverage and valuation may limit near-term upside.

Vistra (NYSE:VST - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Wednesday, Zacks reports.

Several other equities research analysts have also recently commented on the company. TD Cowen cut their price target on Vistra from $222.00 to $221.00 and set a "buy" rating for the company in a report on Wednesday, August 19th. Weiss Ratings lowered Vistra from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, August 13th. Mizuho began coverage on Vistra in a research note on Monday, August 24th. They set an "outperform" rating and a $169.00 price objective on the stock. Scotiabank upped their target price on Vistra from $293.00 to $298.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Finally, Morgan Stanley raised their target price on Vistra from $212.00 to $227.00 and gave the stock an "overweight" rating in a research note on Friday, August 21st. Sixteen equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $217.61.

Vistra Stock Up 1.6%

Shares of NYSE VST opened at $154.26 on Wednesday. Vistra has a 12-month low of $132.66 and a 12-month high of $217.10. The stock has a market cap of $51.78 billion, a PE ratio of 26.06 and a beta of 1.38. The company has a current ratio of 0.97, a quick ratio of 0.87 and a debt-to-equity ratio of 5.87. The company has a 50-day moving average of $144.84 and a 200 day moving average of $151.28.

Vistra (NYSE:VST - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported $0.76 EPS for the quarter, missing analysts' consensus estimates of $1.61 by ($0.85). The business had revenue of $4.02 billion during the quarter, compared to analyst estimates of $5.46 billion. Vistra had a net margin of 11.55% and a return on equity of 108.68%. As a group, sell-side analysts predict that Vistra will post 9.04 EPS for the current fiscal year.

Insider Activity at Vistra

In other news, EVP Scott A. Hudson sold 44,444 shares of Vistra stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $151.82, for a total value of $6,747,488.08. Following the completion of the sale, the executive vice president directly owned 331,137 shares of the company's stock, valued at approximately $50,273,219.34. The trade was a 11.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO James Burke bought 4,465 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The shares were acquired at an average cost of $135.25 per share, for a total transaction of $603,891.25. Following the completion of the purchase, the chief executive officer owned 1,146,352 shares in the company, valued at $155,044,108. This trade represents a 0.39% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.92% of the company's stock.

Hedge Funds Weigh In On Vistra

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Premier Financial Group acquired a new stake in shares of Vistra in the second quarter valued at $34,000. Brown Lisle Cummings Inc. raised its holdings in Vistra by 141.2% in the first quarter. Brown Lisle Cummings Inc. now owns 246 shares of the company's stock valued at $37,000 after acquiring an additional 144 shares in the last quarter. Stonehage Fleming Financial Services Holdings Ltd acquired a new stake in Vistra in the second quarter valued at approximately $37,000. Silicon Valley Capital Partners acquired a new stake in Vistra in the second quarter valued at approximately $39,000. Finally, Physician Wealth Advisors Inc. lifted its stake in Vistra by 46.6% in the first quarter. Physician Wealth Advisors Inc. now owns 302 shares of the company's stock worth $45,000 after acquiring an additional 96 shares during the last quarter. Hedge funds and other institutional investors own 90.88% of the company's stock.

Trending Headlines about Vistra

Here are the key news stories impacting Vistra this week:

• Positive Sentiment: Federal loan supports capacity expansion: The Department of Energy announced a $4.2 billion loan to Vistra to modernize its power fleet and expand generation. The financing could help the company benefit from rising electricity demand from AI and data centers, particularly in markets where Vistra already operates. Vistra Stock Surged Following Its $4.2 Billion Federal Loan
• Positive Sentiment: Redemption of Series A preferred stock: Vistra announced the redemption of all one million outstanding Series A preferred shares for $1.0 billion. Eliminating the 8% preferred security could reduce costly preferred financing and simplify the capital structure, though it will require a substantial cash outlay. Vistra Announces Redemption of All Outstanding Series A Preferred Stock
• Positive Sentiment: AI-related power demand remains a growth theme: Coverage highlighted record power demand across the Mid-Atlantic, Midwest and Texas, reinforcing the investment case for Vistra’s generation assets and potential earnings growth from data-center expansion. Stocks Supplying the AI Data Center Power Crunch
• Neutral Sentiment: Shares remain volatile: Vistra declined sharply on October 14 while the broader market also fell, then recovered in the following session. Recent swings occurred without a new earnings report, suggesting positioning and sentiment are contributing to trading activity. Did the Market Read Vistra Stock Right?
• Negative Sentiment: Near-term valuation may limit upside: An analysis found Vistra’s forward valuation near historical averages and viewed Constellation Energy as having a stronger near-term setup. This suggests investors may already be pricing in much of Vistra’s nuclear and data-center opportunity. Why Constellation Energy Has a Near-Term Edge Over Vistra

About Vistra

Vistra Corp. NYSE: VST is an integrated energy company headquartered in Irving, Texas. The company operates electricity generation facilities and provides electricity and related energy services to residential, commercial, and industrial customers. Its portfolio includes natural gas, nuclear, coal, solar, and battery energy storage assets.

Vistra also operates a retail electricity business that offers power plans, renewable energy options, and energy-management services. Its retail brands include TXU Energy, Homefield Energy, Dynegy, and Ambit Energy, serving customers in competitive electricity markets across the United States.

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