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) shares traded down 8.7% during mid-day trading on Thursday . The company traded as low as GBX 613.90 ($8.32) and last traded at GBX 642.17 ($8.70). 45,221,309 shares changed hands during 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 ($9.53).

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. JPMorgan Chase & Co. started coverage on shares of Drax Group in a research note on Friday, July 4th. They set an "overweight" rating and a GBX 1,000 price objective on the stock. Citigroup lifted their price target on Drax Group from GBX 682 to GBX 689 and gave the stock a "neutral" rating in a report on Wednesday, August 6th. One investment 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 has a consensus rating of "Moderate Buy" and an average target price of GBX 844.50.

Drax Group Price Performance

The company has a market capitalization of £2.21 billion, a PE ratio of 588.81, a price-to-earnings-growth ratio of 0.10 and a beta of 1.22. 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 stock's 50 day simple moving average is GBX 687.72 and its 200-day simple moving average is GBX 636.83.

Drax Group (LON:DRX - Get Free Report) last announced 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%. As a group, equities analysts forecast that Drax Group plc will post 97.4732006 earnings per share 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.