Stock Analysis

Possible bearish signals as Vistra Corp. (NYSE:VST) insiders disposed of US$18m worth of stock

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In the last year, many Vistra Corp. (NYSE:VST) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Vistra

The Last 12 Months Of Insider Transactions At Vistra

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. So we know that an insider sold shares at around the present share price of US$24.96. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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.

Happily, we note that in the last year insiders paid US$2.7m for 117.99k shares. But insiders sold 720.47k shares worth US$18m. Over the last year we saw more insider selling of Vistra shares, than buying. 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 September 6th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insiders At Vistra Have Bought Stock Recently

It's good to see that Vistra insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$2.2m worth of shares. That shows some optimism about the company's future.

Does Vistra Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Vistra insiders own about US$65m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Vistra Insiders?

The recent insider purchases are heartening. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Vistra insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. 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. At Simply Wall St, we found 1 warning sign for Vistra that deserve your attention before buying any shares.

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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Vistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth4
Past Performance0
Financial Health1

Read more about these checks in the individual report sections or in our analysis model.

Very undervalued with reasonable growth potential.