Vistra’s CEO Bought $1.17 Million of Stock After the Selloff. Is AI Power Demand Mispriced?

Vistra Corp. (VST) stock fell 6.2% over three months due to hedging losses and ERCOT uncertainty, despite a 30% rise in Q2 adjusted EBITDA to $1.77B. CEO Jim Burke bought 8,665 shares near $135. Analysts' mean target is $217, 51% above current price, with 15 buys, 4 outperforms, 1 underperform, and 1 sell.

Scottish Mortgage Investment Trust, known for its SpaceX investment, has acquired Vistra Corp (VST) shares, which have fallen 31% in a year. Vistra, a major U.S. power generator, benefits from AI-driven electricity demand, with strong Q2 earnings and long-term contracts with Meta and AWS. The stock trades at 13.3x next year's earnings, offering a potential entry point for investors.

Vistra (VST) has partnered with KKR and NVIDIA to form Helix Digital Infrastructure and signed 20-year nuclear power agreements with Amazon Web Services and Meta Platforms, totaling nearly 4,000 megawatts. These deals aim to create durable, contracted cash flows in data center and clean energy markets. Vistra projects $26.5 billion revenue and $3.9 billion earnings by 2029, with some analysts predicting higher figures. However, investors should consider elevated leverage and potential risks in T

Vistra (VST) management expects Cogentrix and Meta PPAs to add $700M to 2027 EBITDA, with $1.2B in buyback authorization. Guggenheim predicts 120% returns, citing growth potential. Peers Constellation (CEG), NRG (NRG), and Talen (TLN) also fell. VST trades at a forward P/E of 16, with 19/20 analysts rating it Buy/Strong Buy.

Vistra (VST), a major U.S. power producer, reports growing electricity demand driven by data centers, EVs, and oil field electrification. Despite a 37% stock drop from its 52-week high, its Q2 adjusted EBITDA rose 31% YoY to $1.77B. The company has long-term power purchase agreements with Amazon and Meta, ensuring revenue visibility. Vistra's forward P/E ratio is about 13, and it expects strong free cash flow.

Vistra (VST) shares fell 2% after reporting a $472M hedging loss, despite a 31% rise in adjusted EBITDA to $1.77B. Analysts' price targets range from $106 to $305, with a consensus at $217.42. The company maintained its 2026 EBITDA forecast and has repurchased $6.5B in shares since 2021.