Vistra (NYSE:VST) Shares Up 1.6% - Here's What Happened

Key Points

• Vistra shares rose 1.6% to $133.34, while trading volume was 21% below its average.
• The company beat quarterly expectations, reporting EPS of $3.23 versus estimates of $2.98 and revenue of $6.35 billion versus $6.03 billion. Management also outlined plans for substantial free-cash-flow growth.
• Vistra increased its quarterly dividend and authorized a $1.5 billion share-repurchase plan. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $202.48.

Vistra Corp. (NYSE:VST - Get Free Report) was up 1.6% during trading on Wednesday. The stock traded as high as $136.73 and last traded at $133.34. 4,223,980 shares were traded during mid-day trading, a decline of 21% from the average session volume of 5,313,869 shares. The stock had previously closed at $131.18.

Recent Vistra Headlines

Here are a few of the latest headlines about VST:

• Positive Sentiment: Management outlined a goal of approximately 70% growth in free cash flow without relying on an AI-related build-out. Separately, the earnings-call recap cites stronger cash flow per share through 2030, supported by the Cogentrix acquisition, power contracts, and buybacks. These plans may strengthen the investment case if delivered. Vistra Sees Approximately 70% Growth in Free Cash Flow Vistra Q3 Earnings Call Highlights Cash Flow Plans and Demand Risks
• Positive Sentiment: Scotiabank initiated or reiterated a Buy view on VST, offering additional analyst support. The provided report does not include the firm’s price target or detailed rationale. Vistra Gets a Buy from Scotiabank
• Neutral Sentiment: A comparison in coverage of rival Constellation Energy put Vistra near 13 times forward earnings, below Constellation’s roughly 21 times. That valuation gap may appeal to investors, but the comparison is not a new Vistra-specific catalyst. Can Constellation Energy’s Contracts Power a Stock Rebound?

Analyst Ratings Changes

Several equities analysts have recently issued reports on VST shares. The Goldman Sachs Group set a $206.00 price target on Vistra and gave the company a "buy" rating in a research note on Wednesday, August 12th. TD Cowen lowered their price objective on Vistra from $222.00 to $221.00 and set a "buy" rating for the company in a research report on Wednesday, August 19th. UBS Group set a $176.00 price objective on Vistra in a report on Wednesday, October 21st. JPMorgan Chase & Co. cut their target price on shares of Vistra from $231.00 to $228.00 in a research report on Tuesday, October 27th. Finally, Canadian Imperial Bank of Commerce cut their target price on shares of Vistra from $201.00 to $181.00 and set an "outperformer" rating on the stock in a research report on Wednesday, October 28th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Vistra currently has a consensus rating of "Moderate Buy" and a consensus price target of $202.48.

Vistra Stock Performance

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 market cap of $44.75 billion, a price-to-earnings ratio of 18.02 and a beta of 1.37. The stock has a 50 day moving average price of $143.69 and a two-hundred day moving average price of $152.37.

Vistra (NYSE:VST - Get Free Report) last released its quarterly earnings data on Friday, November 6th. The company reported $3.23 EPS for the quarter, beating analysts' consensus estimates of $2.98 by $0.25. Vistra had a return on equity of 123.66% and a net margin of 13.15%. The business had revenue of $6.35 billion during the quarter, compared to the consensus estimate of $6.03 billion. Analysts predict that Vistra Corp. will post 8.74 EPS for the current year.

Vistra Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 22nd will be given a dividend of $0.2310 per share. This represents a $0.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Tuesday, December 22nd. This is an increase from Vistra's previous quarterly dividend of $0.23. Vistra's dividend payout ratio is presently 12.43%.

Vistra announced that its Board of Directors has approved a share repurchase plan on Friday, November 6th that authorizes the company to repurchase $1.50 billion in shares. This repurchase authorization authorizes the company to buy up to 3.3% of its stock through open market purchases. Share repurchase plans are usually an indication that the company's board of directors believes its shares are undervalued.

Insider Transactions at Vistra

In other news, CEO James A. Burke purchased 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 transaction, the chief executive officer directly owned 1,146,352 shares of the company's stock, valued at approximately $155,044,108. The trade was a 0.39% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, EVP Scott Hudson sold 22,222 shares of Vistra stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $160.14, for a total transaction of $3,558,631.08. Following the transaction, the executive vice president directly owned 308,915 shares in the company, valued at $49,469,648.10. The trade was a 6.71% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.92% of the company's stock.

Hedge Funds Weigh In On Vistra

Several institutional investors and hedge funds have recently made changes to their positions in VST. BlackRock Inc. bought a new position in Vistra during the second quarter worth about $4,610,496,000. State Street Corp increased its holdings in shares of Vistra by 0.5% in the second quarter. State Street Corp now owns 16,850,452 shares of the company's stock worth $2,672,987,000 after acquiring an additional 79,972 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Vistra by 1.0% in the first quarter. Dimensional Fund Advisors LP now owns 3,436,880 shares of the company's stock worth $516,616,000 after acquiring an additional 32,982 shares in the last quarter. Bank of America Corp DE acquired a new position in shares of Vistra in the 2nd quarter valued at approximately $468,354,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Vistra in the 2nd quarter valued at approximately $381,938,000. Institutional investors and hedge funds own 90.88% of the company's stock.

Vistra Company Profile

Vistra Corp. is an integrated energy company that generates and sells electricity and provides related services to residential, commercial and industrial customers. Its retail businesses offer electricity plans and energy services through brands that include TXU Energy and Ambit Energy. The company owns and operates a diverse generation fleet, including natural gas, nuclear, coal and solar facilities, as well as battery energy storage systems. Its operations serve customers and wholesale power markets across multiple U.S. regions, including Texas and the eastern and central United States.

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