Associated British Foods (LON:ABF) Shares Down 10.4% – What’s Next?
by Teresa Graham · The Cerbat GemAssociated British Foods plc (LON:ABF – Get Free Report)’s stock price dropped 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. Approximately 4,048,014 shares changed hands during trading, a decline of 53% from the average daily 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 regulator to fast‑track the takeover review; the CMA accepted the request to move straight to a Phase 2 investigation, meaning a full, detailed probe rather than a quick clearance — this increases timeline and uncertainty around the transaction. ABF, Hovis ask UK regulator to fast-track takeover review
- Neutral Sentiment: Market commentary notes ABF is underperforming the market amid the news flow, reinforcing downward pressure while liquidity and intraday volume remain elevated. Associated British Foods slips Thursday, underperforms market
- Negative Sentiment: Primark issued a profit warning after weaker holiday trading and a slump in fashion/beauty sales, which directly hit ABF’s near‑term profit outlook and was cited as the main reason for the share move. Primark owner ABF shares slide after profit warning
- Negative Sentiment: Retail sales data from the holiday period show fashion and beauty categories shrinking at peers (e.g., Marks & Spencer and Primark), reinforcing concerns that consumer demand softened over the crucial trading season. Primark, Marks & Spencer See Fashion, Beauty Sales Shrink During Key Holiday Trading Period
- Negative Sentiment: The UK competition watchdog has opened formal scrutiny of ABF’s planned acquisition of Hovis (Kingsmill owner), raising the prospect of remedies, delay or even a blocked deal — an additional overhang for investors assessing transaction value and integration upside. UK competition watchdog to investigate Kingsmill owner’s planned takeover of Hovis
Analysts Set New Price Targets
A number of equities analysts recently commented on ABF shares. Shore Capital reissued a “buy” rating on shares of Associated British Foods in a research note on Tuesday, November 4th. Deutsche Bank Aktiengesellschaft upgraded Associated British Foods to a “hold” rating and reduced their target price for the stock from GBX 2,130 to GBX 2,000 in a report on Wednesday, September 24th. Citigroup raised their target price on Associated British Foods from GBX 1,830 to GBX 1,840 and gave the company a “sell” rating in a research note on Monday, November 10th. Finally, JPMorgan Chase & Co. dropped their price target 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. Two 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 data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of GBX 2,058.75.
Associated British Foods Stock Down 10.4%
The company has a market cap of £13.63 billion, a P/E ratio of 13.61, a P/E/G ratio of 1.51 and a beta of 1.24. The company’s 50-day moving average is GBX 2,149.47 and its two-hundred day moving average is GBX 2,150.33. The company has a debt-to-equity ratio of 32.88, a current ratio of 1.78 and a quick ratio of 0.93.
Associated British Foods (LON:ABF – Get Free Report) last issued its quarterly earnings data on Tuesday, November 4th. The company reported GBX 174.90 EPS for the quarter. Associated British Foods had a return on equity of 13.07% and a net margin of 7.25%. As a group, equities analysts predict that Associated British Foods plc will post 188.0990415 earnings per share for the current fiscal year.
Insider Buying and Selling
In related news, insider George G. Weston sold 43,660 shares of the company’s stock in a transaction on Monday, November 17th. The shares were 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 on Monday, November 17th. The shares were sold at an average price of GBX 2,103, for a total transaction of £732,222.54. 1.50% of the stock is currently owned by corporate insiders.
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.