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

Shares of Associated British Foods plc (LON:ABF) traded down 10.4% during trading on Thursday . The stock 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 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

Wall Street Analyst Weigh In

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

Associated British Foods Price Performance

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 has a fifty day moving average of GBX 2,149.47 and a 200 day moving average of GBX 2,150.33. The stock has a market cap of £13.63 billion, a PE 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 EPS 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 year.

Insider Activity 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 value 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 value of £732,222.54. Insiders own 1.50% of the company’s stock.

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.