Drax Group (LON:DRX) Stock Price Crosses Above Two Hundred Day Moving Average - What's Next?

Key Points

• Crossed above its 200-day moving average: Drax's shares moved above the 200‑day MA (GBX 824.76) on Friday, trading as high as GBX 869.40 and last at GBX 856.80 on volume of 1,191,008 shares.
• Analysts raising targets and a Buy consensus: Citigroup lifted its target to GBX 923 and Jefferies to GBX 1,120; the stock carries a consensus Buy rating with an average target of GBX 998.25.
• Mixed fundamentals: the company has a market cap of £2.88bn, a high PE ratio of 42.42, low net margin (1.35%) and modest ROE (3.94%) with a debt-to-equity of 67.01, highlighting valuation and profitability considerations despite analyst optimism.

Drax Group plc (LON:DRX - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of GBX 824.76 and traded as high as GBX 869.40. Drax Group shares last traded at GBX 856.80, with a volume of 1,191,008 shares.

Analysts Set New Price Targets

DRX has been the topic of a number of research reports. Citigroup increased their target price on shares of Drax Group from GBX 850 to GBX 923 and gave the stock a "buy" rating in a report on Thursday, February 12th. Jefferies Financial Group increased their target price on shares of Drax Group from GBX 750 to GBX 1,120 and gave the stock a "buy" rating in a report on Wednesday, January 7th. Four equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average target price of GBX 998.25.

Drax Group Stock Down 1.2%

The firm has a market capitalization of £2.88 billion, a PE ratio of 42.42, a price-to-earnings-growth ratio of 0.10 and a beta of 0.68. The company has a quick ratio of 0.32, a current ratio of 1.07 and a debt-to-equity ratio of 67.01. The business's 50-day moving average price is GBX 876 and its 200-day moving average price is GBX 824.76.

Drax Group (LON:DRX - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported GBX 137.70 earnings per share for the quarter. Drax Group had a return on equity of 3.94% and a net margin of 1.35%. As a group, equities research analysts predict that Drax Group plc will post 97.4732006 EPS for the current fiscal year.

Drax Group Company Profile

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. The Customers segment supplies electricity and gas to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in southwest Scotland.

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