Drax Group (LON:DRX) Stock Crosses Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Drax Group shares moved above their 200-day moving average of GBX 810.89, reaching GBX 814 before last trading at GBX 802.23 on volume of about 1.61 million shares.
• Analyst sentiment remains positive overall, with two Buy ratings and one Hold rating; MarketBeat reports a consensus rating of “Moderate Buy.” However, Citigroup and Jefferies recently lowered their price targets.
• Drax reported quarterly EPS of GBX 29.80, but profitability remained modest, with a 1.10% return on equity and a 0.37% net margin. The company operates renewable power generation, biomass pellet production and energy supply businesses in the UK.

Drax Group plc (LON:DRX - Get Free Report)'s share price passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of GBX 810.89 and traded as high as GBX 814. Drax Group shares last traded at GBX 802.23, with a volume of 1,610,598 shares changing hands.

Analyst Ratings Changes

Several research firms recently issued reports on DRX. Citigroup cut their target price on 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. Jefferies Financial Group lowered their price target on Drax Group from GBX 920 to GBX 870 and set a "buy" rating for the company in a research report on Wednesday, August 12th. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of GBX 3,343.33.

Drax Group Stock Performance

The company has a current ratio of 1.07, a quick ratio of 0.32 and a debt-to-equity ratio of 68.79. The firm's fifty day moving average is GBX 758.97 and its 200 day moving average is GBX 810.89. The company has a market cap of £2.70 billion, a PE ratio of 94.38, a price-to-earnings-growth ratio of 0.10 and a beta of 0.62.

Drax Group (LON:DRX - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported GBX 29.80 EPS for the quarter. Drax Group had a return on equity of 1.10% and a net margin of 0.37%. As a group, research analysts predict that Drax Group plc will post 97.4732006 EPS for the current fiscal 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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