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Top Insiders Sold Vistra Stock, Now What?
Stock Analysis & Ideas

Top Insiders Sold Vistra Stock, Now What?

Story Highlights
  • Vistra stock gained over 58% in one year.
  • Top insiders, including the CEO, sold Vistra stock.
  • It continues to execute well and could benefit from higher power prices.

Vistra Energy (NYSE: VST) is in the utility business. It generates and sells electricity and natural gas to retail, commercial, and industrial customers. 

Its integrated business model, comprehensive hedging strategy, strong balance sheet, favorable energy commodities market, and robust demand have supported the uptrend in its stock. Thanks to these positives, VST stock has risen about 58% in one year. Further, it’s up about 13% on a year-to-date basis. 

While VST stock has trended higher, its top insiders have sold its stock. Per the recent SEC (Securities and Exchange Commission) filings and TipRanks’ Insider Trading Activity tool, Vistra’s outgoing CEO, Curtis Morgan, sold shares worth $27.1 million. 

Meanwhile, VST’s EVP and chief admin officer, Kirby Carrie Lee, and another EVP and General Counsel, Stephanie Zapata Moore, sold shares worth approximately $0.5 million and $4.2 million, respectively. 

Now What?

Along with top insiders, hedge funds and retail investors have also lowered their exposure to Vistra stock. 

According to TipRanks’ Hedge Fund Trading Activity tool, hedge funds decreased their holdings by 5.5M shares. Meanwhile, 0.8% of the investors holding portfolios on TipRanks have reduced their holdings in VST stock. 

The negative indicators from insiders, hedge funds, and retail investors aren’t a good sign. However, Vistra continues to execute well and is on course to capitalize on the power price increases through its hedging strategy and retail business. Moreover, it continues to enhance its shareholders’ returns through share buybacks and dividend increases.

Further, Vistra’s focus on energy transition opportunities, completion of its two solar power facilities, and focus on strengthening its balance sheet through reduction of debt augur well for growth. 

Bottom Line 

Vistra’s integrated business model, which includes power generation and retail, as well as an active hedging strategy, ensures stable and predictable cash flows. Further, its diversified portfolio, favorable pricing environment, green shift, and debt reduction bode well for future growth. Moreover, its share repurchases and higher dividend payments are positives. 

Vistra stock sports a Strong Buy consensus rating on TipRanks, based on six unanimous Buy recommendations. Moreover, the average price target of $30.67 represents 20.4% upside potential

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