Associated British Foods (LON:ABF) Share Price Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Associated British Foods shares rose above their 200-day moving average, reaching GBX 2,130 and last trading at GBX 2,117.67, compared with a 200-day average of GBX 1,904.69.
• Analyst sentiment remains cautious: four analysts rate the stock “Hold” and three rate it “Sell,” producing a consensus “Reduce” rating and an average price target of GBX 1,788.57.
• ABF reported quarterly EPS of GBX 174.90 on revenue of GBX 1,945.90 billion, while its key financial metrics included a 4.89% net margin and 8.44% return on equity.

Associated British Foods plc (LON:ABF - Get Free Report) shares crossed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of GBX 1,904.69 and traded as high as GBX 2,130. Associated British Foods shares last traded at GBX 2,117.67, with a volume of 1,128,743 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on ABF shares. Citigroup cut their target price on Associated British Foods from GBX 1,450 to GBX 1,410 and set a "sell" rating on the stock in a research report on Tuesday, June 16th. Shore Capital Group reiterated a "hold" rating and issued a GBX 2,010 price target on shares of Associated British Foods in a research report on Thursday, July 2nd. UBS Group reissued a "neutral" rating and issued a GBX 2,050 price target on shares of Associated British Foods in a research note on Friday, June 26th. JPMorgan Chase & Co. cut their price objective on Associated British Foods from GBX 1,780 to GBX 1,700 and set a "neutral" rating on the stock in a report on Friday, July 3rd. Finally, Royal Bank Of Canada lowered shares of Associated British Foods to an "underperform" rating and reduced their price objective for the company from GBX 2,050 to GBX 1,850 in a research note on Monday, April 13th. Four investment analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus price target of GBX 1,788.57.

Associated British Foods Price Performance

The stock has a fifty day moving average price of GBX 1,963.24 and a 200-day moving average price of GBX 1,904.69. The company has a market cap of £14.75 billion, a PE ratio of 15.81, a price-to-earnings-growth ratio of 1.51 and a beta of 0.81. The company has a debt-to-equity ratio of 32.63, a current ratio of 1.51 and a quick ratio of 0.93.

Associated British Foods (LON:ABF - Get Free Report) last issued its earnings results on Wednesday, June 17th. The company reported GBX 174.90 EPS for the quarter. Associated British Foods had a return on equity of 8.44% and a net margin of 4.89%.The business had revenue of GBX 1,945.90 billion during the quarter. On average, equities analysts expect that Associated British Foods plc will post 188.0990415 earnings per share for the current year.

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.

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