Waverly Advisors LLC Raises Stake in Vistra Corp. $VST

Key Points

• Waverly Advisors increased its Vistra stake by 296.3% in the second quarter, bringing its holdings to 9,591 shares valued at approximately $1.52 million. Institutional investors collectively own 90.88% of the company.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $223.53, although one firm downgraded the stock to “Hold.” Vistra shares recently traded near $148, well below the consensus target.
• Vistra’s latest quarter fell short of expectations, reporting $0.76 in adjusted earnings per share versus the $1.61 estimate and revenue of $4.02 billion versus $5.46 billion expected. The company declared a quarterly dividend of $0.23 per share, while its high debt-to-equity ratio of 5.87 remains a risk.

Waverly Advisors LLC grew its stake in Vistra Corp. (NYSE:VST - Free Report) by 296.3% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 9,591 shares of the company's stock after acquiring an additional 7,171 shares during the quarter. Waverly Advisors LLC's holdings in Vistra were worth $1,521,000 as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of VST. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in shares of Vistra in the fourth quarter valued at about $25,000. Mcguire Capital Advisors Inc. purchased a new position in Vistra during the fourth quarter worth about $28,000. Kemnay Advisory Services Inc. acquired a new position in Vistra in the 4th quarter valued at about $30,000. Strive Financial Group LLC acquired a new position in Vistra in the 4th quarter valued at about $33,000. Finally, IFC & Insurance Marketing Inc. acquired a new position in Vistra in the 4th quarter valued at about $35,000. Hedge funds and other institutional investors own 90.88% of the company's stock.

Analyst Ratings Changes

A number of analysts have recently issued reports on VST shares. Seaport Research Partners restated a "buy" rating and set a $230.00 price target on shares of Vistra in a report on Monday, June 15th. Morgan Stanley upped their price objective on Vistra from $212.00 to $227.00 and gave the company an "overweight" rating in a report on Friday, August 21st. Zacks Research lowered Vistra from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 18th. Sanford C. Bernstein set a $187.00 target price on Vistra and gave the stock an "outperform" rating in a research note on Tuesday, June 16th. Finally, Mizuho began coverage on Vistra in a research report on Monday, August 24th. They issued an "outperform" rating and a $169.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $223.53.

Insider Transactions at Vistra

In related news, EVP Scott Hudson sold 44,444 shares of the business's 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 sale, the executive vice president owned 331,137 shares in the company, valued at approximately $50,273,219.34. The trade was a 11.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO James A. Burke bought 4,465 shares of the firm's stock in a transaction that occurred on Tuesday, September 1st. The shares were purchased at an average cost of $135.25 per share, for a total transaction of $603,891.25. Following the purchase, the chief executive officer owned 1,146,352 shares in the company, valued at $155,044,108. This represents a 0.39% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders sold 75,944 shares of company stock valued at $11,852,488. Corporate insiders own 0.92% of the company's stock.

Vistra Price Performance

Vistra stock opened at $148.12 on Monday. The company's 50 day simple moving average is $148.81 and its 200-day simple moving average is $153.94. The company has a debt-to-equity ratio of 5.87, a quick ratio of 0.87 and a current ratio of 0.97. Vistra Corp. has a 1 year low of $132.66 and a 1 year high of $219.82. The company has a market capitalization of $49.71 billion, a price-to-earnings ratio of 25.02 and a beta of 1.40.

Vistra (NYSE:VST - Get Free Report) last posted its quarterly earnings data on Friday, August 7th. The company reported $0.76 earnings per share for the quarter, missing analysts' consensus estimates of $1.61 by ($0.85). The company had revenue of $4.02 billion for the quarter, compared to analysts' expectations of $5.46 billion. Vistra had a return on equity of 108.68% and a net margin of 11.55%. As a group, equities research analysts expect that Vistra Corp. will post 9.21 earnings per share for the current year.

Vistra Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be given a dividend of $0.23 per share. This is an increase from Vistra's previous quarterly dividend of $0.23. This represents a $0.92 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Monday, September 21st. Vistra's dividend payout ratio (DPR) is 15.54%.

More Vistra News

Here are the key news stories impacting Vistra this week:

• Positive Sentiment: Vistra priced $850 million of Series A and $650 million of Series B junior subordinated notes due 2057. Proceeds will support general corporate purposes and could be used to redeem outstanding preferred stock, potentially improving the capital structure. Vistra Prices Registered Offering of $1.5 Billion of Junior Subordinated Notes
• Positive Sentiment: Analysts remain optimistic about Vistra’s growth prospects. Hedging, long-term power contracts, its diversified generation portfolio and rising electricity demand from data centers, industrial activity and electrification support earnings visibility. The Cogentrix acquisition and long-term nuclear agreements with Meta and Amazon Web Services are additional potential catalysts. Vistra: Cogentrix and Meta Can Offset a Softer ERCOT Outlook
• Positive Sentiment: Wall Street’s consensus view remains favorable, with a Moderate Buy rating and price targets generally well above the recent trading range. Commentators cite improving EBITDA expectations and potential upside to management’s outlook. Vistra Receives Consensus Recommendation of Moderate Buy
• Neutral Sentiment: Executive Vice President Scott Hudson sold 44,444 shares worth approximately $6.75 million. Because the transaction was executed under a pre-arranged Rule 10b5-1 plan, it is a limited signal of management’s current outlook. SEC Insider Transaction Filing
• Negative Sentiment: The notes increase Vistra’s financing obligations while the company already has substantial leverage, reflected in a debt-to-equity ratio of 5.87. Investors may also be concerned about softer ERCOT conditions and the additional leverage associated with the Cogentrix acquisition. VST Stock Outperforms Industry in the Past Three Months

Vistra Profile

Vistra Corp. is an integrated energy company headquartered in Irving, Texas. The company operates electricity generation and retail energy businesses, serving residential, commercial, industrial and wholesale customers primarily across the United States.

Vistra's generation portfolio includes natural gas, nuclear, coal, solar and battery energy storage facilities. Through its retail operations, the company provides electricity, natural gas and renewable energy plans under brands that include TXU Energy, Dynegy, Homefield Energy and Ambit Energy.

The company was established in 2016 following the separation of Energy Future Holdings' competitive energy businesses.

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