Associated British Foods (LON:ABF) Trading Down 10.4% – Here’s What Happened

Associated British Foods plc (LON:ABF) shares were down 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.

Associated British Foods News Summary

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

• Neutral Sentiment: Market note that ABF shares underperformed the market amid the news flow; this is a snapshot of market reaction rather than new fundamental guidance. Associated British Foods slips Thursday, underperforms market
• Neutral Sentiment: Broader retail context: Primark and other UK retailers (Marks & Spencer) reported weaker fashion/beauty sales over the key holiday period, underscoring sector-wide demand softness that weighs on Primark’s outlook. Primark, Marks & Spencer See Fashion, Beauty Sales Shrink During Key Holiday Trading Period
• Neutral Sentiment: ABF and Hovis requested the UK regulator fast-track the takeover review — an attempt to accelerate clearance that signals the deal is a priority but does not guarantee outcome. ABF, Hovis ask UK regulator to fast-track takeover review
• Negative Sentiment: The CMA has accepted ABF and Hovis’s request to skip straight to Phase 2 of its merger investigation, meaning a more detailed probe and increased risk the deal could be blocked or subject to remedies. CMA accepts joint ABF/Hovis request to fast-track merger investigation
• Negative Sentiment: The UK competition watchdog is launching an investigation into the Kingsmill owner’s planned takeover of Hovis, adding another layer of regulatory uncertainty for the acquisition. UK competition watchdog to investigate Kingsmill owner’s planned takeover of Hovis
• Negative Sentiment: Primark weakness prompted a profit warning that directly reduced ABF’s near-term outlook, triggering a sharp share sell-off. Associated British Foods Shares Plunge as Primark Weakness Weighs on Outlook
• Negative Sentiment: Multiple reports note ABF shares plunged/slide after the Primark profit warning and sales slump during the key trading period, reflecting investor concern over margin and sales momentum. Primark owner ABF shares slide after profit warning
• Negative Sentiment: Additional headlines show shares fell more than 10% on the profit warning, underscoring the market’s negative re-pricing of ABF while investors digest earnings risk and takeover uncertainty. Associated British Foods shares plummet by over 10% after Primark profit warning
• Negative Sentiment: Coverage reiterates that Primark sales slump is the operational driver while the Hovis takeover faces heightened regulatory scrutiny — a combination that is pressuring the stock. Associated British Foods shares slide after Primark sales slump

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Shore Capital reaffirmed 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 cut their price target for the company from GBX 2,130 to GBX 2,000 in a research note on Wednesday, September 24th. JPMorgan Chase & Co. lowered their target price on shares of Associated British Foods from GBX 2,215 to GBX 2,095 and set a “neutral” rating for the company in a report on Wednesday, November 5th. Finally, Citigroup boosted their price objective 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. Two investment 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. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of GBX 2,058.75.

Associated British Foods Price Performance

The stock has a market capitalization of £13.63 billion, a P/E ratio of 13.61, a price-to-earnings-growth ratio of 1.51 and a beta of 1.24. The firm has a 50-day moving average price of GBX 2,149.47 and a 200 day moving average price of 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 quarterly earnings results on Tuesday, November 4th. The company reported GBX 174.90 earnings per share (EPS) for the quarter. Associated British Foods had a net margin of 7.25% and a return on equity of 13.07%. On average, analysts expect that Associated British Foods plc will post 188.0990415 EPS for the current year.

Insiders Place Their Bets

In related news, insider George G. Weston sold 43,660 shares of Associated British Foods 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 company’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of GBX 2,103, for a total transaction of £732,222.54. Company 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.