Associated British Foods (LON:ABF) Trading Down 10.4% – Should You Sell?

Associated British Foods plc (LON:ABF)’s stock price fell 10.4% during mid-day trading 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.

Associated British Foods News Roundup

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

ABF has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft upgraded Associated British Foods to a “hold” rating and decreased their price objective for the company from GBX 2,130 to GBX 2,000 in a report on Wednesday, September 24th. Citigroup boosted their price target on shares of 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. JPMorgan Chase & Co. dropped their price objective 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. Finally, Shore Capital reissued a “buy” rating on shares of Associated British Foods in a research 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 company. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of GBX 2,058.75.

Associated British Foods Stock Down 10.4%

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 stock has a market capitalization of £13.63 billion, a PE ratio of 13.61, a P/E/G ratio of 1.51 and a beta of 1.24. The stock’s fifty day simple moving average is GBX 2,149.47 and its 200-day simple moving average is GBX 2,150.33.

Associated British Foods (LON:ABF) last announced its earnings results 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%. As a group, sell-side analysts forecast that Associated British Foods plc will post 188.0990415 EPS for the current fiscal year.

Insider Buying and Selling

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 on Monday, November 17th. The stock was sold at an average price of GBX 2,103, for a total value of £918,169.80. 1.50% of the stock is owned by insiders.

About Associated British Foods

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.