Associated British Foods (LON:ABF) Shares Down 13.2% - Here's Why

Key Points

• Associated British Foods shares fell by 13.2%, trading as low as GBX 1,928.50 ($26.09), significantly dropping from its previous close of GBX 2,241 ($30.32).
• Analyst ratings have been mixed, with Shore Capital maintaining a "buy" rating while Deutsche Bank downgraded the stock to "sell" and reduced its target price to GBX 2,130.
• The company has a market cap of £13.84 billion and has seen insider selling, with over 16,000 shares sold by Eoin Tonge at an average price of GBX 2,070.

Associated British Foods plc (LON:ABF - Get Free Report) was down 13.2% during mid-day trading on Wednesday . The company traded as low as GBX 1,928.50 ($26.15) and last traded at GBX 1,945.50 ($26.38). Approximately 2,909,437 shares were traded during trading, a decline of 24% from the average daily volume of 3,829,985 shares. The stock had previously closed at GBX 2,241 ($30.39).

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on ABF shares. Deutsche Bank Aktiengesellschaft downgraded shares of Associated British Foods to a "sell" rating and decreased their price objective for the stock from GBX 2,220 to GBX 2,130 in a report on Tuesday, August 26th. Shore Capital reiterated a "buy" rating on shares of Associated British Foods in a research report on Wednesday, September 10th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Associated British Foods currently has an average rating of "Hold" and an average price target of GBX 2,215.

Associated British Foods Price Performance

The company has a quick ratio of 0.93, a current ratio of 1.78 and a debt-to-equity ratio of 32.88. The stock has a market cap of £13.96 billion, a P/E ratio of 1,106.32, a price-to-earnings-growth ratio of 1.51 and a beta of 1.24. The business's 50-day simple moving average is GBX 2,190.23 and its two-hundred day simple moving average is GBX 2,082.86.

Insider Activity at Associated British Foods

In other news, insider Eoin Tonge sold 16,741 shares of the firm's stock in a transaction that occurred on Thursday, July 3rd. The shares were sold at an average price of GBX 2,070, for a total value of £346,538.70. Company insiders own 1.49% 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.