Drax Group (LON:DRX) Trading Down 10.4% - Here's Why

Key Points

• Drax Group's shares fell 10.4% during trading, reaching a low of GBX 613.90 ($8.29) before closing at GBX 630.50 ($8.51), with trading volume significantly increasing by 1,871%.
• Analysts have mixed opinions, with Citigroup upgrading the price objective to GBX 689 and JPMorgan giving an "overweight" rating with a target of GBX 1,000, while the consensus remains a "Moderate Buy" at GBX 844.50.
• Insider Will Gardiner sold 150,000 shares at an average price of GBX 660, raising concerns about insider confidence as Drax Group continues to engage in renewable power generation in the UK.

Drax Group plc (LON:DRX - Get Free Report)'s share price was down 10.4% on Thursday . The company traded as low as GBX 613.90 ($8.32) and last traded at GBX 630.50 ($8.54). Approximately 45,545,332 shares were traded during trading, an increase of 1,871% from the average daily volume of 2,311,119 shares. The stock had previously closed at GBX 703.50 ($9.53).

Wall Street Analyst Weigh In

A number of research analysts have weighed in on DRX shares. Citigroup increased their price target on Drax Group from GBX 682 to GBX 689 and gave the stock a "neutral" rating in a research note on Wednesday, August 6th. JPMorgan Chase & Co. assumed coverage on Drax Group in a research note on Friday, July 4th. They set an "overweight" rating and a GBX 1,000 price target on the stock. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of GBX 844.50.

Drax Group Trading Down 1.7%

The firm has a market capitalization of £2.21 billion, a price-to-earnings ratio of 588.81, a P/E/G 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. The business has a fifty day moving average price of GBX 687.72 and a 200 day moving average price of GBX 636.83.

Drax Group (LON:DRX - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported GBX 65.60 EPS for the quarter. Drax Group had a return on equity of 31.63% and a net margin of 9.42%. As a group, equities analysts forecast that Drax Group plc will post 97.4732006 earnings per share for the current year.

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.