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

Shares of Associated British Foods plc (LON:ABF) fell 10.4% during mid-day trading on Thursday . The company traded as low as GBX 1,844 and last traded at GBX 1,926.58. 4,048,014 shares traded 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.

Key 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

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on ABF. Citigroup upped their price target 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. JPMorgan Chase & Co. dropped their target price on Associated British Foods from GBX 2,215 to GBX 2,095 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Deutsche Bank Aktiengesellschaft raised Associated British Foods to a “hold” rating and cut their price target for the stock from GBX 2,130 to GBX 2,000 in a research note on Wednesday, September 24th. Finally, Shore Capital reiterated a “buy” rating on shares of Associated British Foods in a report on Tuesday, November 4th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Associated British Foods currently has a consensus rating of “Hold” and a consensus price target of GBX 2,058.75.

Associated British Foods Stock Performance

The firm has a market cap of £13.63 billion, a price-to-earnings ratio of 13.61, a price-to-earnings-growth ratio of 1.51 and a beta of 1.24. The firm’s 50 day moving average is GBX 2,149.47 and its 200-day moving average is GBX 2,150.33. The company has a debt-to-equity ratio of 32.88, a quick ratio of 0.93 and a current ratio of 1.78.

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

Insider Transactions at Associated British Foods

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