Vistra (NYSE:VST) Stock Price Down 2.7% Following Analyst Downgrade

Key Points

• Vistra shares fell 2.7% to $138.88 after Zacks Research downgraded the stock from Strong Buy to Hold, despite the broader analyst consensus remaining “Moderate Buy” with a $226 price target.
• Vistra’s latest quarterly results missed expectations, reporting $0.76 in EPS versus $1.61 expected and revenue of $4.02 billion versus the $5.46 billion consensus estimate.
• Institutional ownership remains high at 90.88%, while insiders sold 41,588 shares worth approximately $6.74 million over the past three months. The company also maintained its quarterly dividend at $0.23 per share.

Vistra Corp. (NYSE:VST - Get Free Report)'s stock price fell 2.7% on Thursday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $138.33 and last traded at $138.88. 3,724,835 shares were traded during mid-day trading, a decline of 25% from the average session volume of 4,939,123 shares. The stock had previously closed at $142.70.

Several other research firms have also recently weighed in on VST. Morgan Stanley upped their price target on shares of Vistra from $208.00 to $212.00 and gave the company an "overweight" rating in a report on Tuesday, July 28th. JPMorgan Chase & Co. cut their price objective on shares of Vistra from $240.00 to $231.00 and set an "overweight" rating on the stock in a research report on Thursday, April 30th. Wells Fargo & Company reissued an "overweight" rating and issued a $212.00 price target on shares of Vistra in a research note on Monday, August 10th. The Goldman Sachs Group set a $206.00 price objective on Vistra in a research report on Wednesday, August 12th. Finally, TD Cowen dropped their target price on Vistra from $222.00 to $221.00 and set a "buy" rating on the stock in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Vistra presently has a consensus rating of "Moderate Buy" and a consensus price target of $226.00.

Insider Activity at Vistra

In other Vistra news, Director John R. Sult sold 6,500 shares of the company's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $170.00, for a total value of $1,105,000.00. Following the transaction, the director directly owned 70,714 shares in the company, valued at $12,021,380. The trade was a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul M. Barbas sold 244 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $153.00, for a total transaction of $37,332.00. Following the completion of the transaction, the director owned 53,006 shares in the company, valued at approximately $8,109,918. This trade represents a 0.46% 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. In the last three months, insiders sold 41,588 shares of company stock valued at $6,739,227. 0.92% of the stock is owned by company insiders.

Institutional Trading of Vistra

Several large investors have recently modified their holdings of VST. BlackRock Inc. acquired a new position in Vistra in the second quarter valued at $4,610,496,000. Norges Bank acquired a new stake in Vistra during the 4th quarter worth about $746,729,000. Capital World Investors acquired a new stake in Vistra during the 4th quarter worth about $574,499,000. Bank of America Corp DE bought a new position in shares of Vistra in the 2nd quarter worth about $468,354,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Vistra in the 2nd quarter worth about $381,938,000. 90.88% of the stock is owned by institutional investors and hedge funds.

Vistra Price Performance

The company has a market capitalization of $46.61 billion, a price-to-earnings ratio of 23.46 and a beta of 1.41. 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 business has a 50 day moving average price of $154.10 and a 200-day moving average price of $156.11.

Vistra (NYSE:VST - Get Free Report) last issued 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 return on equity of 108.68% and a net margin of 11.55%.The company had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $5.46 billion. Research analysts predict that Vistra Corp. will post 9.23 EPS for the current fiscal year.

Vistra Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be issued a $0.23 dividend. This is a boost from Vistra's previous quarterly dividend of $0.23. This represents a $0.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, September 21st. Vistra's dividend payout ratio is currently 15.54%.

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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