Have Insiders Sold Vistra Shares Recently?

We wouldn't blame Vistra Corp. (NYSE:VST) shareholders if they were a little worried about the fact that Scott Helm, the Independent Chairman of the Board recently netted about US$3.1m selling shares at an average price of US$157. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.2%.

We've discovered 2 warning signs about Vistra. View them for free.

The Last 12 Months Of Insider Transactions At Vistra

The Executive VP, Stephanie Moore, made the biggest insider sale in the last 12 months. That single transaction was for US$6.2m worth of shares at a price of US$162 each. So we know that an insider sold shares at around the present share price of US$155. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 1.84k shares worth US$220k. On the other hand they divested 161.13k shares, for US$21m. In total, Vistra insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Vistra

I will like Vistra better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Vistra Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Vistra insiders own about US$527m worth of shares (which is 1.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Vistra Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Vistra, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Vistra makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Vistra has 2 warning signs we think you should be aware of.

But note: Vistra may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.