BlackRock Inc. Makes New $4.61 Billion Investment in Vistra Corp. $VST

Key Points

• BlackRock acquired 29.1 million Vistra shares worth approximately $4.61 billion during the second quarter, giving it an 8.62% stake. Institutional investors collectively own 90.88% of the company.
• Analysts remain broadly optimistic, with an average “Buy” rating and a consensus price target of $228.56, although some firms recently lowered or reduced their ratings.
• Vistra reported weaker-than-expected quarterly results, with EPS of $0.76 versus $1.61 expected and revenue of $4.02 billion versus $5.46 billion estimated. The company maintained its quarterly dividend at $0.23 per share, representing a 0.7% annualized yield.

BlackRock Inc. bought a new position in Vistra Corp. (NYSE:VST - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 29,064,465 shares of the company's stock, valued at approximately $4,610,496,000. BlackRock Inc. owned approximately 8.62% of Vistra at the end of the most recent quarter.

Other large investors also recently bought and sold shares of the company. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in Vistra in the 4th quarter worth about $25,000. Mcguire Capital Advisors Inc. bought a new position in shares of Vistra during the fourth quarter valued at approximately $28,000. Kemnay Advisory Services Inc. purchased a new stake in Vistra in the 4th quarter valued at about $30,000. Strive Financial Group LLC purchased a new position in shares of Vistra during the fourth quarter worth approximately $33,000. Finally, Salomon & Ludwin LLC increased its holdings in Vistra by 74.8% during the 4th quarter. Salomon & Ludwin LLC now owns 215 shares of the company's stock worth $35,000 after purchasing an additional 92 shares during the period. Institutional investors own 90.88% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the stock. Sanford C. Bernstein set a $187.00 price objective on shares of Vistra and gave the stock an "outperform" rating in a research report on Tuesday, June 16th. Seaport Research Partners reissued a "buy" rating and issued a $230.00 price objective on shares of Vistra in a report on Monday, June 15th. Scotiabank increased their target price on shares of Vistra from $293.00 to $298.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 15th. Weiss Ratings lowered shares of Vistra from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, August 13th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Vistra from $240.00 to $231.00 and set an "overweight" rating on the stock in a research note on Thursday, April 30th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and one has given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $228.56.

Insider Buying and Selling

In other Vistra news, Director Paul M. Barbas sold 244 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $153.00, for a total value of $37,332.00. Following the completion of the sale, the director owned 53,006 shares of the company's stock, valued at $8,109,918. This trade represents a 0.46% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scott B. Helm sold 25,000 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $160.00, for a total transaction of $4,000,000.00. Following the sale, the director directly owned 232,200 shares of the company's stock, valued at approximately $37,152,000. The trade was a 9.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 41,588 shares of company stock worth $6,739,227 in the last 90 days. 0.92% of the stock is owned by insiders.

Vistra Price Performance

Shares of NYSE:VST opened at $140.39 on Wednesday. Vistra Corp. has a one year low of $132.66 and a one year high of $219.82. The company has a 50-day simple moving average of $154.02 and a 200-day simple moving average of $156.25. The company has a debt-to-equity ratio of 5.87, a quick ratio of 0.87 and a current ratio of 0.97. The stock has a market capitalization of $47.12 billion, a price-to-earnings ratio of 23.71 and a beta of 1.41.

Vistra (NYSE:VST - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The company reported $0.76 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.61 by ($0.85). Vistra had a net margin of 11.55% and a return on equity of 108.68%. The company had revenue of $4.02 billion for the quarter, compared to analyst estimates of $5.46 billion. On average, analysts predict that Vistra Corp. will post 9.23 EPS for the current year.

Vistra Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be given a dividend of $0.23 per share. This is a positive change from Vistra's previous quarterly dividend of $0.23. The ex-dividend date of this dividend is Monday, September 21st. This represents a $0.92 dividend on an annualized basis and a yield of 0.7%. Vistra's dividend payout ratio is currently 15.54%.

About Vistra

Vistra NYSE: VST is an integrated power company that develops, owns and operates electricity generation and retail businesses in the United States. The company's operations span wholesale power production—through a diversified fleet of thermal and lower‑carbon generation assets—and retail electricity supply to residential, commercial and industrial customers. Vistra serves organized wholesale markets and competitive retail markets, with a notable presence in Texas and other regional U.S. power markets.

Vistra's core activities include the ownership and operation of generation facilities, the commercial dispatch and optimization of those assets into wholesale markets, and the sale of electricity and related services to end-use customers through its retail brands.

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