Drax Group (LON:DRX) Stock Price Down 8.7% - What's Next?

Key Points

• Drax Group's stock price declined by 8.7%, reaching a low of GBX 613.90 ($8.29) during mid-day trading on Thursday.
• Despite the recent drop, analysts maintain a consensus rating of "Moderate Buy" with a target price of GBX 844.50, with JPMorgan Chase recently issuing an "overweight" rating and a price objective of GBX 1,000.
• Insider Will Gardiner sold 150,000 shares at a price of GBX 660, totalizing £990,000, highlighting potential concerns over insider sentiment amidst the stock’s volatility.

Drax Group plc (LON:DRX - Get Free Report)'s share price fell 8.7% during mid-day trading on Thursday . The company traded as low as GBX 613.90 ($8.29) and last traded at GBX 642.17 ($8.67). 45,221,309 shares changed hands during mid-day trading, an increase of 1,858% from the average session volume of 2,309,167 shares. The stock had previously closed at GBX 703.50 ($9.50).

Wall Street Analysts Forecast Growth

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

Drax Group Stock Down 10.6%

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 firm has a market cap of £2.31 billion, a PE ratio of 3.73, a price-to-earnings-growth ratio of 0.10 and a beta of 1.22. The stock has a fifty day simple moving average of GBX 688.81 and a two-hundred day simple moving average of GBX 636.80.

Drax Group (LON:DRX - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported GBX 65.60 earnings per share for the quarter. Drax Group had a return on equity of 31.63% and a net margin of 9.42%. As a group, sell-side analysts expect 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 Drax Group stock in a transaction dated Tuesday, June 3rd. The stock was sold at an average price of GBX 660, for a total transaction of £990,000. 0.67% of the stock is owned by insiders.

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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