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

Shares of Associated British Foods plc (LON:ABF) were down 10.4% on Thursday . The stock traded as low as GBX 1,844 and last traded at GBX 1,926.58. Approximately 486,813,688 shares changed hands during trading, an increase of 363% from the average daily volume of 105,192,828 shares. The stock had previously closed at GBX 2,151.

Key Associated British Foods News

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

• Neutral Sentiment: ABF and Hovis formally asked the UK regulator to fast-track the takeover review, a move that seeks quicker clarity on competition concerns but does not remove the risk of intervention. ABF, Hovis ask UK regulator to fast-track takeover review
• Neutral Sentiment: ABF is underperforming the broader market this session as investors re-price near-term earnings risk following multiple trading updates. Associated British Foods slips Thursday, underperforms market
• Negative Sentiment: Primark issued a profit warning after weaker holiday trading and slower apparel demand, prompting analysts and investors to cut near-term earnings expectations and triggering a sharp share decline. Associated British Foods Shares Plunge as Primark Weakness Weighs on Outlook
• Negative Sentiment: The Competition and Markets Authority has accepted a request to move the ABF/Hovis review straight to a phase 2 investigation, meaning deeper scrutiny and a longer, more uncertain timeline for closing the takeover. That raises execution risk and potential remedial requirements. CMA accepts joint ABF/Hovis request to fast-track merger investigation
• Negative Sentiment: Broader retail weakness: Primark and peers (e.g., Marks & Spencer) reported shrinking fashion and beauty sales in the key holiday period, suggesting sector-wide margin pressure and slower recovery in discretionary spending. Primark, Marks & Spencer See Fashion, Beauty Sales Shrink During Key Holiday Trading Period
• Negative Sentiment: The Guardian reports the UK competition watchdog will investigate ABF’s planned takeover of Hovis — another confirmation of regulatory risk that could delay or alter the terms of the deal. UK competition watchdog to investigate Kingsmill owner’s planned takeover of Hovis

Analyst Upgrades and Downgrades

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

Associated British Foods Price Performance

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 business’s 50-day simple moving average is GBX 2,149.47 and its two-hundred day simple moving average is GBX 2,150.33. The firm 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 released its earnings results on Tuesday, November 4th. The company reported GBX 174.90 earnings per share (EPS) for the quarter. Associated British Foods had a net margin of 7.25% and a return on equity of 13.07%. As a group, research analysts expect that Associated British Foods plc will post 188.0990415 EPS for the current fiscal year.

Insiders Place Their Bets

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