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

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) dropped 9.6% during mid-day trading on Thursday . The company traded as low as GBX 613.90 ($8.29) and last traded at GBX 636.25 ($8.59). Approximately 45,639,664 shares were traded during trading, an increase of 1,874% from the average daily volume of 2,311,687 shares. The stock had previously closed at GBX 703.50 ($9.50).

Analyst Upgrades and Downgrades

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

Drax Group Stock Down 0.2%

The firm's 50-day simple moving average is GBX 688.23 and its 200 day simple moving average is GBX 636.65. The company has a market cap of £2.26 billion, a P/E ratio of 602.71, a PEG 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.

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 net margin of 9.42% and a return on equity of 31.63%. On average, research analysts forecast that Drax Group plc will post 97.4732006 earnings per share for the current fiscal year.

Insider Activity at Drax Group

In other Drax Group news, insider Will Gardiner sold 150,000 shares of the company's stock in a transaction on 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.

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.