Associated British Foods (LON:ABF) Shares Down 10.4% – Here’s What Happened

Shares of Associated British Foods plc (LON:ABF) fell 10.4% during trading on Thursday . The stock traded as low as GBX 1,844 and last traded at GBX 1,926.58. 4,048,014 shares traded hands during trading, a decline of 53% from the average session volume of 8,639,694 shares. The stock had previously closed at GBX 2,151.

Associated British Foods News Roundup

Here are the key news stories impacting Associated British Foods this week:

• Neutral Sentiment: ABF and Hovis asked the UK competition regulator to fast-track the takeover review by moving straight to a Phase 2 investigation; the CMA has accepted the request, which accelerates the timetable but also means a more detailed probe. CMA accepts joint ABF/Hovis request to fast-track merger investigation
• Neutral Sentiment: ABF and Hovis formally asked the UK regulator to fast-track the takeover review; this is procedural but keeps regulatory risk front of mind for investors as it compresses the review timeline. ABF, Hovis ask UK regulator to fast-track takeover review
• Negative Sentiment: Primark issued a profit warning and downgraded its outlook after weaker trading, triggering a sharp share reaction as investors reprice expectations for ABF’s largest growth engine. Associated British Foods Shares Plunge as Primark Weakness Weighs on Outlook
• Negative Sentiment: Holiday trading showed a slump in apparel and beauty at Primark and peers (Marks & Spencer), signaling softer consumer demand in key categories that hit sales and margins. This supports the view that Primark’s near-term profitability may be weaker than previously forecast. Primark, Marks & Spencer See Fashion, Beauty Sales Shrink During Key Holiday Trading Period
• Negative Sentiment: The UK competition watchdog has opened an investigation into the planned Hovis takeover (Kingsmill owner), adding the risk that the deal faces remedies or could be blocked — a regulatory overhang for ABF while the takeover is resolved. UK competition watchdog to investigate Kingsmill owner’s planned takeover of Hovis

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on ABF shares. Shore Capital reiterated a “buy” rating on shares of Associated British Foods in a research report on Tuesday, November 4th. Citigroup boosted their target price on Associated British Foods from GBX 1,830 to GBX 1,840 and gave the stock a “sell” rating in a research report on Monday, November 10th. JPMorgan Chase & Co. decreased their price target on Associated British Foods from GBX 2,215 to GBX 2,095 and set a “neutral” rating for the company in a research report on Wednesday, November 5th. Finally, Deutsche Bank Aktiengesellschaft raised Associated British Foods to a “hold” rating and dropped their price target for the stock from GBX 2,130 to GBX 2,000 in a research note on Wednesday, September 24th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of GBX 2,058.75.

Associated British Foods Stock Down 10.4%

The business has a fifty day moving average price of GBX 2,149.47 and a two-hundred day moving average price of GBX 2,150.33. The company has a current ratio of 1.78, a quick ratio of 0.93 and a debt-to-equity ratio of 32.88. The company has a market cap of £13.63 billion, a price-to-earnings ratio of 13.61, a P/E/G ratio of 1.51 and a beta of 1.24.

Associated British Foods (LON:ABF) last announced its quarterly earnings data on Tuesday, November 4th. The company reported GBX 174.90 EPS for the quarter. Associated British Foods had a net margin of 7.25% and a return on equity of 13.07%. On average, equities analysts predict that Associated British Foods plc will post 188.0990415 earnings per share for the current year.

Insider Transactions at Associated British Foods

In other Associated British Foods news, insider Eoin Tonge sold 34,818 shares of the company’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of GBX 2,103, for a total value of £732,222.54. Also, insider George G. Weston sold 43,660 shares of Associated British Foods stock in a transaction dated Monday, November 17th. The shares were sold at an average price of GBX 2,103, for a total value of £918,169.80. Insiders own 1.50% of the company’s stock.

Associated British Foods Company Profile

Associated British Foods is a diversified international food, ingredients and retail group with sales of £13.9bn, 128,000 employees and operations in 53 countries across Europe, Africa, the Americas, Asia and Australia.

Our purpose is to provide safe, nutritious, affordable food, and clothing that is great value for money. With the breadth of our business, our brands and global reach, ABF aims to consistently deliver value to its stakeholders.

Our business is split into five segments: Grocery; Sugar; Agriculture; Ingredients; and Retail.