Drax Group (LON:DRX) Trading 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.

Shares of Drax Group plc (LON:DRX - Get Free Report) dropped 9.7% during trading on Thursday . The stock traded as low as GBX 613.90 ($8.29) and last traded at GBX 635.15 ($8.57). 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 ($9.50).

Analysts Set New Price Targets

Several research firms recently weighed in on DRX. Citigroup increased their price target on shares of 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. assumed coverage on shares of Drax Group in a research report on Friday, July 4th. They set an "overweight" rating and a GBX 1,000 target price for the company. 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, the company currently has a consensus rating of "Moderate Buy" and an average target price of GBX 844.50.

Drax Group Trading Down 9.6%

The firm has a market capitalization of £2.33 billion, a P/E ratio of 3.77, a price-to-earnings-growth ratio of 0.10 and a beta of 1.22. The company has a quick ratio of 0.32, a current ratio of 1.26 and a debt-to-equity ratio of 64.11. The firm's 50-day simple moving average is GBX 688.81 and its 200-day simple moving average is GBX 636.80.

Drax Group (LON:DRX - Get Free Report) last posted 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%. Analysts anticipate that Drax Group plc will post 97.4732006 EPS for the current year.

Insider Transactions at Drax Group

In other Drax Group news, insider Will Gardiner sold 150,000 shares of the business'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 0.67% 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.

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