Drax Group (LON:DRX) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised the price target for Drax Group from GBX 682 to GBX 689, maintaining a "neutral" rating, indicating a potential downside of 2.06% from the stock's previous close.
• JPMorgan Chase initiated coverage on Drax Group with an "overweight" rating and a significantly higher price target of GBX 1,000.
• Drax Group's recent quarterly earnings report showed an EPS of GBX 65.60, with a net margin of 9.42% and a return on equity of 31.63%.

Drax Group (LON:DRX - Get Free Report) had its target price raised by analysts at Citigroup from GBX 682 ($9.17) to GBX 689 ($9.27) in a research report issued to clients and investors on Wednesday, MarketBeat.com reports. The brokerage presently has a "neutral" rating on the stock. Citigroup's price target would indicate a potential downside of 0.21% from the company's current price.

Separately, JPMorgan Chase & Co. initiated coverage on shares of Drax Group in a report on Friday, July 4th. They issued an "overweight" rating and a GBX 1,000 ($13.45) price target for the company.

Drax Group Price Performance

Shares of DRX traded down GBX 0.04 ($0.00) during midday trading on Wednesday, hitting GBX 690.46 ($9.29). 727,706 shares of the company traded hands, compared to its average volume of 2,131,998. The firm has a 50 day moving average of GBX 680.83 and a 200-day moving average of GBX 629.99. Drax Group has a 52 week low of GBX 534.50 ($7.19) and a 52 week high of GBX 727 ($9.78). The stock has a market cap of £2.53 billion, a price-to-earnings ratio of 4.10, a PEG ratio of 0.10 and a beta of 1.22. The company has a debt-to-equity ratio of 64.11, a quick ratio of 0.32 and a current ratio of 1.26.

Drax Group (LON:DRX - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported GBX 65.60 ($0.88) EPS for the quarter. Drax Group had a net margin of 9.42% and a return on equity of 31.63%. On average, analysts forecast that Drax Group will post 97.4732006 EPS for the current fiscal year.

Insider Activity at Drax Group

In other Drax Group news, insider Will Gardiner sold 150,000 shares of the firm's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of GBX 660 ($8.88), for a total value of £990,000 ($1,331,540.01). Insiders own 0.67% of the company's stock.

About Drax Group

Drax Group plc, together with its subsidiaries, engages in renewable power generation in the United Kingdom. It operates through three segments: Pellet Production, Generation, and Customers. The Pellet Production segment produces and sells biomass pellets. The Generation segment provides renewable, dispatchable power, and system support services to the electricity grid.