Vistra (NYSE:VST) Shares Climb 3.9% - Here's Why

Key Points

• Vistra shares rose 3.9% to about $156.20, supported by favorable analyst sentiment and a consensus “Moderate Buy” rating with a $212.32 target price.
• The company’s growth outlook is being reinforced by a potential $4.2 billion Department of Energy loan commitment for nuclear-fleet upgrades and 20-year agreements to supply Meta with more than 2,600 megawatts of carbon-free nuclear power.
• Despite constructive catalysts, Vistra recently missed quarterly earnings and revenue estimates, while insider activity has been mixed; executives have reported more selling than buying over the past six months.

Shares of Vistra Corp. (NYSE:VST - Get Free Report) were up 3.9% during trading on Wednesday. The stock traded as high as $158.74 and last traded at $156.1950. Approximately 5,069,480 shares were traded during trading, a decline of 1% from the average session volume of 5,117,739 shares. The stock had previously closed at $150.32.

Vistra News Roundup

Here are the key news stories impacting Vistra this week:

• Positive Sentiment: Morgan Stanley maintained an Overweight rating and lowered its price target only slightly, from $227 to $226. The target implies substantial potential upside from recent trading levels, reinforcing the bullish analyst view. Benzinga analyst rating report
• Positive Sentiment: Investors continue to recognize the potential of the U.S. Department of Energy’s conditional loan commitment of up to $4.2 billion for uprates and modernization across Vistra’s Pennsylvania and Ohio nuclear fleet. The financing could support generation growth and improve the long-term economics of the assets. Department of Energy nuclear financing announcement
• Positive Sentiment: Vistra’s 20-year power purchase agreements covering more than 2,600 megawatts of carbon-free nuclear energy for Meta provide greater visibility into future demand, particularly from data centers and other electricity-intensive customers. Vistra and Meta nuclear power agreements
• Positive Sentiment: The recent redemption of all outstanding Series A preferred stock may simplify Vistra’s capital structure and eliminate an expensive layer of financing, potentially improving shareholder value. Vistra preferred-stock redemption announcement
• Neutral Sentiment: VST is trading above its 50-day moving average, supported by rising earnings estimates and strong returns. This is technically constructive, but does not by itself establish a new fundamental catalyst. Zacks technical analysis
• Negative Sentiment: Reported insider activity remains mixed to negative: executives have made considerably more sales than purchases over the past six months. Institutional positioning is also mixed, with large additions from some investors offset by significant reductions from others.

Wall Street Analyst Weigh In

VST has been the subject of a number of recent analyst reports. Sanford C. Bernstein reaffirmed an "outperform" rating and issued a $181.00 price objective on shares of Vistra in a report on Thursday, October 1st. BMO Capital Markets lowered their target price on shares of Vistra from $231.00 to $210.00 and set an "outperform" rating on the stock in a research note on Monday, October 5th. Canadian Imperial Bank of Commerce initiated coverage on Vistra in a research report on Thursday, October 15th. They set an "outperform" rating and a $201.00 target price on the stock. Weiss Ratings cut Vistra from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, August 13th. Finally, The Goldman Sachs Group set a $206.00 price target on Vistra in a research note on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $212.32.

Vistra Price Performance

The company has a quick ratio of 0.87, a current ratio of 0.97 and a debt-to-equity ratio of 5.87. The company has a market capitalization of $52.42 billion, a price-to-earnings ratio of 26.38 and a beta of 1.38. The stock's 50-day simple moving average is $145.31 and its two-hundred day simple moving average is $151.28.

Vistra (NYSE:VST - Get Free Report) last announced its earnings results on Friday, August 7th. The company reported $0.76 earnings per share (EPS) for the quarter, missing the consensus estimate 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 during the quarter, compared to analyst estimates of $5.46 billion. Equities research analysts predict that Vistra Corp. will post 9.04 earnings per share for the current year.

Vistra Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were given a dividend of $0.23 per share. The ex-dividend date was Monday, September 21st. This is a positive change from Vistra's previous quarterly dividend of $0.2290. This represents a $0.92 annualized dividend and a dividend yield of 0.6%. Vistra's dividend payout ratio (DPR) is presently 15.54%.

Insider Buying and Selling at Vistra

In related news, EVP Scott Hudson sold 44,444 shares of the 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 transaction, the executive vice president directly owned 331,137 shares of the company's stock, valued at approximately $50,273,219.34. This represents a 11.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO James A. Burke acquired 4,465 shares of the firm's stock in a transaction on Tuesday, September 1st. The stock was purchased at an average price of $135.25 per share, for a total transaction of $603,891.25. Following the acquisition, the chief executive officer directly 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. 0.92% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Vistra

A number of large investors have recently modified their holdings of VST. BlackRock Inc. acquired a new position in shares of Vistra during the 2nd quarter worth about $4,610,496,000. Envestnet Asset Management Inc. boosted its holdings in Vistra by 16.1% in the second quarter. Envestnet Asset Management Inc. now owns 258,337 shares of the company's stock valued at $40,979,000 after purchasing an additional 35,862 shares in the last quarter. Fifth Third Bancorp boosted its holdings in Vistra by 95.1% in the first quarter. Fifth Third Bancorp now owns 177,199 shares of the company's stock valued at $26,638,000 after purchasing an additional 86,393 shares in the last quarter. Wealth High Governance Capital Ltda purchased a new position in Vistra in the first quarter valued at approximately $10,543,000. Finally, Lazard Asset Management LLC increased its stake in Vistra by 353.5% in the first quarter. Lazard Asset Management LLC now owns 11,690 shares of the company's stock valued at $1,757,000 after purchasing an additional 9,112 shares during the last quarter. Hedge funds and other institutional investors own 90.88% of the company's stock.

Vistra Company Profile

Vistra Corp. NYSE: VST is an integrated energy company based in Irving, Texas. The company operates across electricity generation, power distribution support, energy marketing and retail electricity sales, serving residential, commercial and industrial customers primarily in the United States.

Vistra owns and operates a diverse portfolio of power generation and energy storage facilities. Its assets include natural gas, nuclear, coal and renewable generation, as well as battery storage projects.

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