Investors Buy Large Volume of Call Options on Vistra (NYSE:VST)

Key Points

• Unusually heavy call option buying hit Vistra, with investors purchasing 36,868 call contracts on Wednesday, about 38% above normal volume.
• The stock fell 5.2% to $138.59, despite the company recently reporting strong quarterly results that beat analyst expectations on both earnings and revenue.
• Vistra also raised its quarterly dividend to $0.229 per share, while analysts remain broadly positive with a consensus rating of “Buy” and an average price target of $233.33.

Vistra Corp. (NYSE:VST - Get Free Report) was the recipient of unusually large options trading on Wednesday. Investors bought 36,868 call options on the company. This represents an increase of 38% compared to the typical volume of 26,669 call options.

Vistra Trading Down 5.2%

Shares of VST stock traded down $7.63 on Wednesday, hitting $138.59. The stock had a trading volume of 2,598,854 shares, compared to its average volume of 5,126,474. The company has a current ratio of 0.90, a quick ratio of 0.79 and a debt-to-equity ratio of 5.51. Vistra has a twelve month low of $132.66 and a twelve month high of $219.82. The company has a fifty day moving average price of $153.91 and a two-hundred day moving average price of $160.70. The firm has a market cap of $46.73 billion, a P/E ratio of 23.23 and a beta of 1.40.

Vistra (NYSE:VST - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $2.87 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.32 by $1.55. The firm had revenue of $5.64 billion during the quarter, compared to analysts' expectations of $5.22 billion. Vistra had a return on equity of 105.64% and a net margin of 11.52%. As a group, analysts forecast that Vistra will post 9.3 earnings per share for the current fiscal year.

Vistra Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be paid a dividend of $0.229 per share. This represents a $0.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. This is a positive change from Vistra's previous quarterly dividend of $0.23. Vistra's dividend payout ratio (DPR) is currently 15.24%.

Insiders Place Their Bets

In other news, CAO Margaret Montemayor sold 4,600 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $160.00, for a total value of $736,000.00. Following the transaction, the chief accounting officer owned 9,760 shares of the company's stock, valued at approximately $1,561,600. This trade represents a 32.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 0.92% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in VST. Pine Valley Investments Ltd Liability Co lifted its position in Vistra by 779.5% in the 1st quarter. Pine Valley Investments Ltd Liability Co now owns 11,425 shares of the company's stock valued at $1,718,000 after acquiring an additional 10,126 shares in the last quarter. Parallel Advisors LLC raised its stake in shares of Vistra by 15.4% in the 1st quarter. Parallel Advisors LLC now owns 5,472 shares of the company's stock valued at $823,000 after purchasing an additional 730 shares during the period. Glenmede Trust Co. NA raised its stake in shares of Vistra by 6.0% in the 1st quarter. Glenmede Trust Co. NA now owns 20,709 shares of the company's stock valued at $3,113,000 after purchasing an additional 1,172 shares during the period. Segall Bryant & Hamill LLC bought a new stake in shares of Vistra in the first quarter valued at about $4,323,000. Finally, GKV Capital Management Co. Inc. boosted its position in shares of Vistra by 191.2% during the first quarter. GKV Capital Management Co. Inc. now owns 3,669 shares of the company's stock worth $552,000 after buying an additional 2,409 shares during the period. Institutional investors and hedge funds own 90.88% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have commented on VST shares. TD Cowen dropped their target price on shares of Vistra from $253.00 to $230.00 and set a "buy" rating for the company in a research report on Monday, May 4th. Morgan Stanley reaffirmed an "overweight" rating and set a $212.00 price objective on shares of Vistra in a research note on Thursday, May 21st. Jefferies Financial Group reiterated a "buy" rating and issued a $190.00 price objective on shares of Vistra in a report on Thursday, May 21st. Weiss Ratings raised Vistra from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, May 11th. Finally, BMO Capital Markets restated an "outperform" rating and set a $241.00 target price on shares of Vistra in a research report on Monday, March 2nd. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus target price of $233.33.

Vistra Company Profile

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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