Stock Analysis

Insider Buying: The Vistra Corp. (NYSE:VST) Independent Chairman of the Board Just Bought 6.0% More Shares

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Vistra Corp. (NYSE:VST) shareholders (or potential shareholders) will be happy to see that the Independent Chairman of the Board, Scott Helm, recently bought a whopping US$512k worth of stock, at a price of US$25.59. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 6.0%.

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Vistra Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Curtis Morgan, for US$15m worth of shares, at about US$26.08 per share. That means that an insider was selling shares at around the current price of US$25.50. 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 172.99k shares worth US$4.1m. On the other hand they divested 670.47k shares, for US$17m. 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!

NYSE:VST Insider Trading Volume March 15th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Vistra

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Vistra insiders own 0.7% of the company, worth about US$72m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Vistra Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Vistra insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vistra. Case in point: We've spotted 2 warning signs for Vistra you should be aware of, and 1 of them can't be ignored.

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, but not derivative transactions.

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