Drax Group (LON:DRX) Stock Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Drax Group shares crossed above their 200-day moving average, reaching GBX 828.50 before last trading at GBX 815.50 on heavy volume.
• Analyst sentiment remains positive overall, with two Buy ratings and one Hold rating, resulting in a “Moderate Buy” consensus; however, Jefferies and Citigroup recently lowered their price targets.
• The company reported quarterly EPS of GBX 29.80, but profitability remained modest, with a 1.10% return on equity and a 0.37% net margin.

Drax Group plc (LON:DRX - Get Free Report)'s share price crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of GBX 805.83 and traded as high as GBX 828.50. Drax Group shares last traded at GBX 815.50, with a volume of 32,538,307 shares traded.

Wall Street Analysts Forecast Growth

DRX has been the subject of a number of recent analyst reports. 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 report on Wednesday, August 12th. Citigroup dropped their price objective on Drax Group from GBX 9,230 to GBX 8,160 and set a "neutral" rating on the stock in a research note on Friday, June 5th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of GBX 3,343.33.

Drax Group Price Performance

The company has a market cap of £2.75 billion, a price-to-earnings ratio of 95.94, 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. The company has a fifty day moving average price of GBX 770.75 and a two-hundred day moving average price of GBX 805.83.

Drax Group (LON:DRX - Get Free Report) last issued its earnings results 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, equities research analysts anticipate 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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