Drax Group (LON:DRX) Shares Down 10.4% - Should You Sell?

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.

Shares of Drax Group plc (LON:DRX - Get Free Report) were down 10.4% during trading on Thursday . The stock traded as low as GBX 613.90 ($8.29) and last traded at GBX 630.50 ($8.51). Approximately 45,545,332 shares changed hands during mid-day 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 ($9.50).

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on DRX shares. Citigroup lifted their price objective on shares of Drax Group from GBX 682 to GBX 689 and gave the stock a "neutral" rating in a research report on Wednesday, August 6th. JPMorgan Chase & Co. initiated coverage on Drax Group in a report on Friday, July 4th. They set an "overweight" rating and a GBX 1,000 price objective on the stock. One research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, Drax Group presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 844.50.

Drax Group Trading Down 9.6%

The company has a debt-to-equity ratio of 64.11, a current ratio of 1.26 and a quick ratio of 0.32. The business's 50 day moving average price is GBX 688.81 and its 200-day moving average price is GBX 636.80. The firm has a market capitalization of £2.33 billion, a price-to-earnings ratio of 3.77, a price-to-earnings-growth ratio of 0.10 and a beta of 1.22.

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

Insiders Place Their Bets

In other Drax Group news, insider Will Gardiner sold 150,000 shares of the company's stock in a transaction dated Tuesday, June 3rd. The shares were sold at an average price of GBX 660, for a total transaction of £990,000. 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.

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