Associated British Foods (LON:ABF) Trading Down 10.4% – Time to Sell?

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

More Associated British Foods News

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 Analyst Weigh In

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

Associated British Foods Trading Down 10.4%

The company has a debt-to-equity ratio of 32.88, a current ratio of 1.78 and a quick ratio of 0.93. The business’s 50-day moving average price is GBX 2,149.47 and its two-hundred day moving average price is GBX 2,150.33. The company has a market capitalization of £13.63 billion, a P/E ratio of 13.61, a PEG ratio of 1.51 and a beta of 1.24.

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

Insider Activity

In related news, insider George G. Weston sold 43,660 shares of the firm’s 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. Also, insider Eoin Tonge sold 34,818 shares of Associated British Foods 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. Corporate 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.