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

Key Points

• Drax Group shares fell by 7.5% during mid-day trading, dropping from a previous close of GBX 703.50 to a low of GBX 613.90.
• Analysts have mixed ratings on the stock, with Citigroup raising their target price to GBX 689 and JPMorgan Chase setting a target of GBX 1,000 while maintaining an "overweight" rating.
• Insider Will Gardiner sold 150,000 shares of Drax Group stock at an average price of GBX 660, amounting to a transaction value of £990,000.

Drax Group plc (LON:DRX - Get Free Report) shares fell 7.5% on Friday . The company traded as low as GBX 613.90 ($8.22) and last traded at GBX 650.50 ($8.71). 3,214,309 shares were traded during trading, an increase of 56% from the average session volume of 2,056,113 shares. The stock had previously closed at GBX 703.50 ($9.42).

Analyst Ratings Changes

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

Drax Group Price Performance

The company has a current ratio of 1.26, a quick ratio of 0.32 and a debt-to-equity ratio of 64.11. The stock has a market capitalization of £2.20 billion, a PE ratio of 584.96, a price-to-earnings-growth ratio of 0.10 and a beta of 1.22. The firm has a 50 day moving average price of GBX 687 and a 200 day moving average price of GBX 636.81.

Drax Group (LON:DRX - Get Free Report) last posted 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%. Research analysts anticipate 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.