Drax Group (LON:DRX) Shares Down 7.5% - Here's Why

Key Points

• Drax Group's stock price fell by 7.5%, trading as low as GBX 613.90 before closing at GBX 650.50.
• Analysts have mixed ratings for Drax Group, with a "Moderate Buy" average rating and a consensus price target of GBX 844.50.
• Insider transactions include a notable sale where CEO Will Gardiner sold 150,000 shares at an average price of GBX 660.

Drax Group plc (LON:DRX - Get Free Report)'s share price was down 7.5% during trading on Friday . The company traded as low as GBX 613.90 ($8.29) and last traded at GBX 650.50 ($8.78). Approximately 3,214,309 shares changed hands during mid-day trading, an increase of 56% from the average daily volume of 2,056,113 shares. The stock had previously closed at GBX 703.50 ($9.50).

Analyst Ratings Changes

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

Drax Group Price Performance

The company has a market cap of £2.27 billion, a price-to-earnings ratio of 605.26, a price-to-earnings-growth ratio of 0.10 and a beta of 1.22. The company has a fifty day moving average price of GBX 688.23 and a two-hundred day moving average price of GBX 636.68. The company has a current ratio of 1.26, a quick ratio of 0.32 and a debt-to-equity ratio of 64.11.

Drax Group (LON:DRX - Get Free Report) last issued its earnings results 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 research analysts anticipate that Drax Group plc will post 97.4732006 EPS for the current fiscal year.

Insider Activity at Drax Group

In other 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, for a total transaction of £990,000. Insiders own 1.17% 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.