Hudson (NYSE:HUD) Scott A, Executive Vice President and President of Vistra Retail at Vistra Corp. (NYSE:VST), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Scott sold a total of 115,000 shares of Vistra Corp. common stock on November 25, 2024, for a total transaction value of approximately $18.88 million. The shares were sold at prices ranging from $164.154 to $165.234 per share.
In a related transaction, Scott exercised 115,000 stock options at a price of $19.68 per share, amounting to a total of $2,263,200. Following these transactions, Scott's direct ownership stands at 254,932 shares.
These transactions reflect Scott's ongoing management of his equity stake in Vistra Corp., a leading provider of electric services headquartered in Irving, Texas.
In other recent news, Vistra Corp announced significant developments in its financial strategy and leadership team. The company's Executive Vice President, Stephen J. Muscato, is set to retire in 2025 after more than 25 years of service. Meanwhile, Vistra Corp has launched a private offering of senior secured notes due in 2026 and 2034, aiming to raise $1.25 billion. This move is geared towards general corporate purposes, including refinancing existing debts.
Vistra Corp also reported solid Q3 earnings, meeting expectations with a revenue of $1.444 billion. The company has raised its EBITDA guidance for 2024 to between $5.0 billion and $5.2 billion. BMO Capital Markets has maintained its Outperform rating on Vistra, increasing the stock's price target.
In other developments, Vistra has announced an upcoming annual tax payment of $392,481 due to record holders of certain rights. The company has also revealed plans for at least $3.25 billion in share repurchases from 2024 to 2026 and an availability of $1.5 billion in incremental capital for allocation through the end of 2026. For 2025, Vistra has projected EBITDA ranging from $5.5 billion to $6.1 billion, and free cash flow between $3.0 billion and $3.6 billion. The company also plans to allocate $700 million in capital for growth initiatives over the next two years, focusing on solar projects for major clients like Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT).
InvestingPro Insights
The recent insider sale by Hudson Scott A comes at a time when Vistra Corp. (NYSE:VST) is experiencing significant market momentum. According to InvestingPro data, VST has seen an impressive 362.86% price total return over the past year, with a staggering 325.84% return year-to-date. This strong performance is reflected in the stock trading near its 52-week high, with the current price at 96.44% of that peak.
InvestingPro Tips highlight that VST has been aggressively buying back shares, which could be seen as a sign of management's confidence in the company's value. Additionally, the company has raised its dividend for 6 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a dividend yield of 0.54% and a dividend growth of 7.52% over the last twelve months.
While the P/E ratio stands at 30.18, which might seem high at first glance, it's important to note that VST is trading at a low P/E ratio relative to its near-term earnings growth, as indicated by another InvestingPro Tip. This suggests potential undervaluation despite the recent price surge.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for Vistra Corp., providing deeper insights into the company's financial health and market position.
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