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

Key Points

• Associated British Foods' shares dropped 13.2% on Wednesday, reaching a low of GBX 1,928.50 ($26.09) before closing at GBX 1,945.50 ($26.32).
• Several analysts have mixed ratings on the stock, with Shore Capital maintaining a "buy" rating while Deutsche Bank lowered its target price and issued a "sell" rating.
• The company has a market capitalization of £13.84 billion and operates in 53 countries, focusing on food and retail.

Shares of Associated British Foods plc (LON:ABF - Get Free Report) dropped 13.2% during trading on Wednesday . The stock traded as low as GBX 1,928.50 ($26.19) and last traded at GBX 1,945.50 ($26.42). Approximately 2,909,437 shares traded hands 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 ($30.43).

Analyst Upgrades and Downgrades

ABF has been the topic of several research analyst reports. Shore Capital reaffirmed a "buy" rating on shares of Associated British Foods in a research report on Wednesday. Deutsche Bank Aktiengesellschaft cut shares of Associated British Foods to a "sell" rating and reduced their price target for the stock from GBX 2,220 to GBX 2,130 in a research report on Tuesday, August 26th. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Associated British Foods presently has a consensus rating of "Hold" and an average target price of GBX 2,215.

Associated British Foods Stock Up 0.7%

The firm's 50 day simple moving average is GBX 2,192.67 and its 200 day simple moving average is GBX 2,079.50. The company has a market cap of £13.87 billion, a price-to-earnings ratio of 1,099.53, a price-to-earnings-growth ratio of 1.51 and a beta of 1.24. The company has a quick ratio of 0.93, a current ratio of 1.78 and a debt-to-equity ratio of 32.88.

Insider Activity at Associated British Foods

In related 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 transaction of £346,538.70. 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.