Drax Group (LON:DRX) Shares Down 9.7% - Here's What Happened

Key Points

• Drax Group's shares fell by 9.7%, trading as low as GBX 613.90 ($8.29) amid a significant increase in trading volume of approximately 45 million shares.
• Analysts have set a new target price with Citigroup raising theirs to GBX 689 and JPMorgan Chase setting a target of GBX 1,000, while the consensus rating is a "Moderate Buy" with an average target of GBX 844.50.
• Insider Will Gardiner sold 150,000 shares at an average price of GBX 660, amounting to a total transaction of £990,000, indicating ongoing insider activity in the company.

Drax Group plc (LON:DRX - Get Free Report)'s share price dropped 9.7% on Thursday . The company traded as low as GBX 613.90 ($8.32) and last traded at GBX 635.15 ($8.60). Approximately 45,383,270 shares were traded during mid-day trading, an increase of 1,865% from the average daily volume of 2,310,143 shares. The stock had previously closed at GBX 703.50 ($9.53).

Analyst Upgrades and Downgrades

DRX has been the topic of a number of analyst reports. Citigroup raised their price target on Drax Group from GBX 682 to GBX 689 and gave the company a "neutral" rating in a research note on Wednesday, August 6th. JPMorgan Chase & Co. initiated coverage on Drax Group in a research report on Friday, July 4th. They set an "overweight" rating and a GBX 1,000 target price on the stock. One investment analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of GBX 844.50.

Drax Group Price Performance

The stock has a market cap of £2.21 billion, a price-to-earnings ratio of 588.81, a PEG ratio of 0.10 and a beta of 1.22. The company has a 50-day moving average of GBX 687.72 and a 200-day moving average of GBX 636.83. 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 quarterly earnings results on Thursday, July 31st. The company reported GBX 65.60 earnings per share (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 research analysts predict that Drax Group plc will post 97.4732006 earnings per share for the current 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.