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Bullish Vistra Corp. (NYSE:VST) insiders were rewarded last week as their US$4.1m investment inflated to US$4.8m

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Insiders who bought Vistra Corp. (NYSE:VST) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$661m as a result of the stock's 7.7% gain over the same period. As a result, the stock they originally bought for US$4.1m is now worth US$4.8m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View 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 purchase was by CEO & Director Curtis Morgan for US$981k worth of shares, at about US$15.89 per share. Even though the purchase was made at a significantly lower price than the recent price (US$19.21), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Vistra insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders at Vistra Have Bought Stock Recently

It's good to see that Vistra insiders have made notable investments in the company's shares. Specifically, Independent Chairman of the Board Scott Helm bought US$90k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Vistra Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Vistra insiders own 0.5% of the company, worth about US$46m. 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 is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Vistra we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Vistra has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.