Shares in Drax (DRX.L) have fallen dramatically from recent highs of 334.2p. Will it continue, or is this an opportunity to pick up a bargain?

• This stock is one of the more significant fallers in the period.
• Bargain hunters should be mindful of fundamentals and events, which can influence price action. Check our website and news outlets for updates.
• Is the trend your friend, or is a bounce imminent?
• The market often over-reacts to bad news. Traders should consider whether it is down for good reason, or is this another over-reaction?
• Now trading at 292.8p (at time of writing). A return to previous highs would represent a rise of 14%.
• Shares -29% from 12-month highs; +16% from 12 month lows.

Latest News

19 Nov:  Drax Group, the power generation company,  released plans to improve biomass self-supply capacity to 5m tonnes over the next 8 years. This plan would be implemented to shrink its carbon emissions, as well as costs and supply-chain risks.

28 Oct:  HSBC has upgraded its rating on Drax Group (DRX) to buy (from hold) and increased the target price to 360p (from 320p).

19 Sep:  Jefferies International reiterates its hold rating on Drax Group (DRX) and reduced the target price to 300p (from 400p).

26 Jul:  Andy Skelton, Director, bought 16,250 shares in the firm on the 25th July 2019 at a price of 297.71p. This Director currently has 31,250 shares.

26 Jul:  Citigroup has upgraded its rating on Drax Group (DRX) to neutral (from sell) and reduced the target price to 304p (from 312p).

25 Jul:  RBC Capital Markets reiterates its top pick rating on Drax Group (DRX) and reduced the target price to 420p (from 460p).

24 Jul:  Drax Group announced that it had refinanced an acquisition bridge loan and agreed another two debt facilities with an overall total of £500m.

Source: Bloomberg, Reuters, Alpha Terminal, FT, DJ Newswires

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