Associated British Foods (LON:ABF) Stock Price Down 10.4% After Analyst Downgrade

Associated British Foods plc (LON:ABF) was down 10.4% during mid-day trading on Thursday after Deutsche Bank Aktiengesellschaft lowered their price target on the stock from GBX 2,100 to GBX 1,925. Deutsche Bank Aktiengesellschaft currently has a hold rating on the stock. Associated British Foods traded as low as GBX 1,844 and last traded at GBX 1,926.58. Approximately 4,048,014 shares traded 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.

Several other research analysts also recently weighed in on ABF. Shore Capital downgraded shares of Associated British Foods to a “hold” rating in a research report on Friday. JPMorgan Chase & Co. decreased their target price on Associated British Foods from GBX 2,095 to GBX 1,940 and set a “neutral” rating on the stock in a report on Friday. Jefferies Financial Group reiterated an “underperform” rating and set a GBX 1,650 target price on shares of Associated British Foods in a research report on Friday. Finally, Citigroup upped their price target on Associated British Foods from GBX 1,830 to GBX 1,840 and gave the stock a “sell” rating in a research report on Monday, November 10th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce” and an average target price of GBX 1,931.

Insider Activity

In related news, insider Eoin Tonge sold 34,818 shares of the firm’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 £732,222.54. Also, insider George G. Weston sold 43,660 shares of Associated British Foods 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. 1.50% of the stock is owned by insiders.

Associated British Foods News Roundup

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

• Neutral Sentiment: CMA has accepted ABF and Hovis’s request to jump to Phase 2 of the merger investigation — this speeds the formal review process but confirms the takeover will face detailed competition scrutiny. 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 — demonstrates the parties want to shorten uncertainty, but it also signals a higher probability of a contested/complex review. ABF, Hovis ask UK regulator to fast-track takeover review
• Negative Sentiment: Primark issued a profit warning and reported weaker fashion & beauty holiday sales, driving the initial sell?off — Primark is a major earnings driver for ABF, so deterioration in its trading meaningfully lowers near?term profit visibility. Associated British Foods Shares Plunge as Primark Weakness Weighs on Outlook
• Negative Sentiment: Shares plunged roughly double?digits after the Primark profit warning; that sharp move has triggered analyst re?ratings and momentum selling. Associated British Foods (LON:ABF) Stock Price Down 10.4% – Here’s Why
• Negative Sentiment: Jefferies reaffirmed an “underperform” stance and set a GBX 1,650 target — a clear bearish signal from a major broker. Jefferies underperform / PT GBX 1,650
• Negative Sentiment: JPMorgan cut its price target from GBX 2,095 to GBX 1,940 and moved to “neutral”, and Deutsche Bank lowered its PT from GBX 2,100 to GBX 1,925 (now “hold”) — these cuts reduce analyst support and can pressure the stock further. JPMorgan & Deutsche price target cuts
• Negative Sentiment: Shore Capital downgraded ABF to “hold”, adding to the wave of less?constructive broker views. Shore Capital downgrade

Associated British Foods Stock 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 company has a market capitalization of £13.15 billion, a PE ratio of 13.13, a PEG ratio of 1.51 and a beta of 1.24. The firm’s 50-day simple moving average is GBX 2,132.80 and its 200-day simple moving average is GBX 2,147.53.

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

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.