Associated British Foods (LON:ABF) Stock Price Down 10.4% – Time to Sell?

Associated British Foods plc (LON:ABF)’s share price traded down 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 traded hands during 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 Stories Impacting Associated British Foods

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

A number of equities analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft raised shares of Associated British Foods to a “hold” rating and cut their price objective for the company from GBX 2,130 to GBX 2,000 in a research report on Wednesday, September 24th. Citigroup boosted their price target on Associated British Foods from GBX 1,830 to GBX 1,840 and gave the company a “sell” rating in a report on Monday, November 10th. Shore Capital restated a “buy” rating on shares of Associated British Foods in a report on Tuesday, November 4th. Finally, JPMorgan Chase & Co. lowered their price objective on Associated British Foods from GBX 2,215 to GBX 2,095 and set a “neutral” rating for the company in a research report on Wednesday, November 5th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of GBX 2,058.75.

Associated British Foods Stock Performance

The company has a market cap of £13.08 billion, a PE ratio of 13.06, a P/E/G ratio of 1.51 and a beta of 1.24. The stock’s 50 day simple moving average is GBX 2,141.56 and its two-hundred day simple moving average is GBX 2,148.77. The company has a quick ratio of 0.93, a current ratio of 1.78 and a debt-to-equity ratio of 32.88.

Associated British Foods (LON:ABF) last released 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, research analysts anticipate that Associated British Foods plc will post 188.0990415 earnings per share for the current year.

Insider Activity

In other news, insider Eoin Tonge sold 34,818 shares of the business’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. Also, insider George G. Weston sold 43,660 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of GBX 2,103, for a total transaction of £918,169.80. Corporate 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.