8. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders as of Q4: 120
Zweig-DiMenna Associates’ Equity Stake: $34.82 Million
Vistra Corp. (NYSE:VST), a Fortune 500 company headquartered in Irving, Texas, is a leading integrated retail electricity and power generation provider. In Q3 2024, the company demonstrated strong financial performance, with revenue surging 54% year-over-year to $6.29 billion. Operating profit saw an even more significant increase of 207%, reaching $2.59 billion, highlighting improved operational efficiency and expanded margins. However, despite these positive results, earnings per share (EPS) came in at $0.11, falling short of analyst projections of $2.24 by 50%.
On February 21, 2025, Vistra Corp. (NYSE:VST)’s board of directors declared a quarterly dividend of $0.22 per share on its common stock, amounting to approximately $75 million in total payouts. Shareholders of record as of March 20, 2025, will receive their dividends on March 31, 2025. Additionally, the company announced a semi-annual dividend of $40.00 per preferred share for its 8.0% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock, payable on April 15, 2025. These consistent dividend payments underscore Vistra’s commitment to returning value to shareholders and maintaining financial stability.
Investors eagerly anticipate Vistra’s upcoming earnings report, scheduled for release on February 27, 2025. Analysts predict the company will report EPS of $1.59, reflecting a remarkable 431.25% year-over-year increase, alongside revenue projections of $4.38 billion, marking a 42.34% rise from the previous year. Despite the recent EPS miss, Vistra Corp. (NYSE:VST) remains a compelling investment due to its strong revenue growth, significant profit expansion, and commitment to shareholder returns. The company’s ability to capitalize on the rising demand for electricity while maintaining operational efficiency positions it well for long-term value creation.
Meridian Hedged Equity Fund stated the following regarding Vistra Corp. (NYSE:VST) in its Q3 2024 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company, primarily serving Texas and the Midwest. We own Vistra because we expect power markets to continue tightening as baseload supply declines, coupled with rising demand from data centers, electric vehicles, and manufacturing reshoring. These factors create a favorable pricing environment for Vistra’s generation fleet, especially its nuclear and gas assets. The stock performed well during the period for three key reasons: tightening energy markets and strengthened pricing in forward-year energy contracts, the continuation of Vistra’s aggressive share repurchase program, and the company’s announced plan to acquire the remaining interest in Vistra Vision at an attractive valuation. Additionally, the company reaffirmed its 2024 guidance, indicating that results are trending toward the upper end of the previously projected range. We took advantage of the stock’s strength this quarter to trim our position.”
