Associated British Foods (LON:ABF) Stock Price Down 12.9% - Here's Why

Key Points

• Associated British Foods' stock price experienced a significant drop of 12.9%, closing at GBX 1,952.50 ($26.41) after reaching a low of GBX 1,928.50 ($26.09).
• Analyst ratings for the company have become mixed, with Deutsche Bank downgrading the stock to a "sell" rating and lowering the price target, while Shore Capital maintained a "buy" rating.
• The company's market capitalization stands at £13.84 billion, with a notably high price-to-earnings ratio of 1,097.29, indicating concerns about its valuation.

Associated British Foods plc (LON:ABF - Get Free Report)'s share price fell 12.9% on Wednesday . The company traded as low as GBX 1,928.50 ($26.09) and last traded at GBX 1,952.50 ($26.41). 26,944,266 shares traded hands during trading, an increase of 579% from the average session volume of 3,967,327 shares. The stock had previously closed at GBX 2,241 ($30.32).

Analyst Ratings Changes

A number of brokerages have recently weighed in on ABF. Shore Capital reaffirmed a "buy" rating on shares of Associated British Foods in a report on Wednesday. Deutsche Bank Aktiengesellschaft cut 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 research report on Tuesday, August 26th. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Associated British Foods presently has a consensus rating of "Hold" and a consensus price target of GBX 2,215.

Associated British Foods Price Performance

The stock has a market capitalization of £13.84 billion, a price-to-earnings ratio of 1,097.29, a PEG ratio of 1.51 and a beta of 1.24. The business's fifty day moving average price is GBX 2,197.56 and its 200-day moving average price is GBX 2,080.26. The company has a debt-to-equity ratio of 32.88, a current ratio of 1.78 and a quick ratio of 0.93.

Insider Activity

In other news, insider Eoin Tonge sold 16,741 shares of Associated British Foods stock in a transaction dated Thursday, July 3rd. The shares were sold at an average price of GBX 2,070, for a total transaction of £346,538.70. 1.49% of the stock is owned by corporate insiders.

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.

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