Drax Group (LON:DRX) Trading Down 7.5% – Time to Sell?

Drax Group plc (LON:DRX) shares were down 7.5% during trading on Friday . The company traded as low as GBX 613.90 ($8.29) and last traded at GBX 650.50 ($8.78). Approximately 3,214,309 shares were traded during trading, an increase of 56% from the average daily volume of 2,056,113 shares. The stock had previously closed at GBX 703.50 ($9.50).

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on DRX shares. JPMorgan Chase & Co. started coverage on Drax Group in a research note on Friday, July 4th. They set an “overweight” rating and a GBX 1,000 price objective for the company. Citigroup upped their price objective on Drax Group from GBX 682 to GBX 689 and gave the stock a “neutral” rating in a research note on Wednesday, August 6th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 844.50.

Drax Group Stock Down 0.2%

The company has a current ratio of 1.26, a quick ratio of 0.32 and a debt-to-equity ratio of 64.11. The stock has a 50-day simple moving average of GBX 688.23 and a 200-day simple moving average of GBX 636.65. The company has a market cap of £2.26 billion, a price-to-earnings ratio of 602.71, a price-to-earnings-growth ratio of 0.10 and a beta of 1.22.

Drax Group (LON:DRX) last announced its quarterly earnings results on Thursday, July 31st. The company reported GBX 65.60 earnings per share (EPS) for the quarter. Drax Group had a return on equity of 31.63% and a net margin of 9.42%. As a group, analysts predict that Drax Group plc will post 97.4732006 EPS for the current year.

Insider Activity at Drax Group

In related news, insider Will Gardiner sold 150,000 shares of the firm’s stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of GBX 660, for a total transaction of £990,000. 1.17% of the stock is owned by corporate insiders.

About Drax Group

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.