Associated British Foods (LON:ABF) Stock Price Passes Above 200 Day Moving Average - Should You Sell?

Key Points

• Associated British Foods shares rose above their 200-day moving average, reaching GBX 2,079 and last trading at GBX 2,063.36, compared with a 200-day average of GBX 1,913.27.
• Analysts remain cautious: the stock has a consensus rating of “Reduce”, with four Hold ratings and three Sell ratings, and an average price target of GBX 1,788.57—well below its recent trading price.
• The company reported quarterly EPS of GBX 174.90 and revenue of GBX 1,945.90 billion, while posting an 8.44% return on equity and a 4.89% net margin.

Associated British Foods plc (LON:ABF - Get Free Report)'s stock price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of GBX 1,913.27 and traded as high as GBX 2,079. Associated British Foods shares last traded at GBX 2,063.36, with a volume of 506,078 shares traded.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on ABF shares. Citigroup dropped their price target 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. Deutsche Bank Aktiengesellschaft decreased their price objective on Associated British Foods from GBX 1,925 to GBX 1,850 and set a "hold" rating for the company in a report on Tuesday, May 26th. Shore Capital Group restated a "hold" rating and issued a GBX 2,010 price objective on shares of Associated British Foods in a research note on Thursday, July 2nd. JPMorgan Chase & Co. lowered their price target on shares of Associated British Foods from GBX 1,780 to GBX 1,700 and set a "neutral" rating on the stock in a research report on Friday, July 3rd. Finally, Jefferies Financial Group restated an "underperform" rating and set a GBX 1,650 price target on shares of Associated British Foods in a research note on Wednesday, July 1st. Four equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average target price of GBX 1,788.57.

Associated British Foods Stock Down 0.1%

The company has a debt-to-equity ratio of 32.63, a quick ratio of 0.93 and a current ratio of 1.51. The firm has a market capitalization of £14.44 billion, a PE ratio of 15.48, a PEG ratio of 1.51 and a beta of 0.81. The company's 50 day simple moving average is GBX 1,991.29 and its 200-day simple moving average is GBX 1,913.27.

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

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.

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