Drax Group (LON:DRX) Shares Down 9.6% - Here's Why

Key Points

• Drax Group plc experienced a significant drop in stock price, falling by 9.6% during mid-day trading, with shares trading as low as GBX 613.90 ($8.29).
• Analysts are mixed on the stock, with Citigroup raising its price goal to GBX 689, while JPMorgan initiated coverage with an "overweight" rating and a target of GBX 1,000.
• The company maintains a market cap of £2.32 billion and reported earnings per share of GBX 65.60 in its last quarterly results.

Shares of Drax Group plc (LON:DRX - Get Free Report) traded down 9.6% during trading on Thursday . The company traded as low as GBX 613.90 ($8.32) and last traded at GBX 636.25 ($8.62). 45,639,664 shares were traded during trading, an increase of 1,874% from the average session volume of 2,311,687 shares. The stock had previously closed at GBX 703.50 ($9.53).

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. 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 report on Wednesday, August 6th. JPMorgan Chase & Co. began coverage on shares of Drax Group in a research note on Friday, July 4th. They issued an "overweight" rating and a GBX 1,000 price target on the stock. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of GBX 844.50.

Drax Group Stock Down 1.7%

The stock has a market cap 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 quick ratio of 0.32 and a current ratio of 1.26. The company's 50-day moving average price is GBX 687.72 and its 200 day moving average price is GBX 636.83.

Drax Group (LON:DRX - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported GBX 65.60 EPS for the quarter. Drax Group had a net margin of 9.42% and a return on equity of 31.63%. As a group, analysts forecast that Drax Group plc will post 97.4732006 EPS for the current fiscal 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.