Drax Group (LON:DRX) Share Price Passes Above 200 Day Moving Average - Here's Why

Key Points

• Drax shares rose above their 200-day moving average, reaching GBX 830 before closing at GBX 827.50, compared with the moving average of GBX 808.27.
• Analyst sentiment remains positive overall, with two Buy ratings and one Hold rating producing a consensus rating of “Moderate Buy.” Jefferies cut its target to GBX 870, while Citi lowered its target and maintained a Neutral rating.
• Drax reported quarterly EPS of GBX 29.80, but profitability was modest, with a 0.37% net margin and 1.10% return on equity. Analysts expect full-year EPS of approximately GBX 97.47.

Drax Group plc (LON:DRX - Get Free Report) shares passed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of GBX 808.27 and traded as high as GBX 830. Drax Group shares last traded at GBX 827.50, with a volume of 603,266 shares trading hands.

Analyst Ratings Changes

Several research firms have commented on DRX. Jefferies Financial Group decreased their price target on shares of Drax Group from GBX 920 to GBX 870 and set a "buy" rating for the company in a research report on Wednesday, August 12th. Citigroup cut their price objective on shares of Drax Group from GBX 9,230 to GBX 8,160 and set a "neutral" rating on the stock in a research report on Friday, June 5th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 3,343.33.

Drax Group Price Performance

The company's 50-day moving average is GBX 766.32 and its 200 day moving average is GBX 808.27. The stock has a market capitalization of £2.79 billion, a PE ratio of 97.35, a price-to-earnings-growth ratio of 0.10 and a beta of 0.62. The company has a current ratio of 1.07, a quick ratio of 0.32 and a debt-to-equity ratio of 68.79.

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 (EPS) for the quarter. Drax Group had a net margin of 0.37% and a return on equity of 1.10%. As a group, analysts anticipate that Drax Group plc will post 97.4732006 EPS 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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