Drax Group (LON:DRX) Share Price Breaks Below Two Hundred Day Moving Average - What's Next?

Key Points

• Drax Group shares fell below their 200-day moving average of GBX 820.83, trading as low as GBX 805.45 before closing at GBX 807.50.
• Jefferies cut its price target from GBX 920 to GBX 870 but maintained a “buy” rating. Overall, analysts rate the stock “Moderate Buy,” with two Buys and one Hold.
• Drax reported quarterly earnings of GBX 29.80 per share, while profitability remained modest, with a 0.37% net margin and 1.10% return on equity.

Drax Group plc (LON:DRX - Get Free Report) crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of GBX 820.83 and traded as low as GBX 805.45. Drax Group shares last traded at GBX 807.50, with a volume of 153,563 shares traded.

Wall Street Analysts Forecast Growth

Separately, Jefferies Financial Group dropped their price target on shares of Drax Group from GBX 920 to GBX 870 and set a "buy" rating on the stock in a research note on Wednesday, August 12th. Two equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Drax Group currently has an average rating of "Moderate Buy" and an average target price of GBX 3,343.33.

Drax Group Stock Performance

The stock has a market cap of £2.72 billion, a price-to-earnings ratio of 95.00, a PEG ratio of 0.10 and a beta of 0.62. The company has a debt-to-equity ratio of 68.79, a quick ratio of 0.32 and a current ratio of 1.07. The company's 50 day simple moving average is GBX 796.06 and its 200 day simple moving average is GBX 820.83.

Drax Group (LON:DRX - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported GBX 29.80 earnings per share for the quarter. Drax Group had a net margin of 0.37% and a return on equity of 1.10%. On average, equities research analysts anticipate that Drax Group plc will post 97.47 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. The Customers segment supplies electricity and gas to non-domestic customers. The company owns and operates Drax Power Station located in Selby, North Yorkshire; Cruachan Power Station, a pumped storage hydro station, with an installed capacity of 440 megawatts (MW) located in Argyll and Bute; and Lanark and Galloway hydro-electric power stations with an installed capacity of 126 MW located in southwest Scotland.

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