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Associated British Foods (LON:ABF) Trading Down 13.2% - Should You Sell?

Associated British Foods logo with Consumer Defensive background

Key Points

  • Associated British Foods' stock fell by 13.2% on Wednesday, closing at GBX 1,945.50 ($26.33), after trading as low as GBX 1,928.50 ($26.10).
  • Analyst opinions are mixed, with Shore Capital maintaining a "buy" rating while Deutsche Bank downgraded it to a "sell" with a lower price target of GBX 2,130.
  • The company's current market cap is £13.84 billion, with a notably high PE ratio of 1,097.29, indicating potential concerns about overvaluation.
  • MarketBeat previews the top five stocks to own by October 1st.

Associated British Foods plc (LON:ABF - Get Free Report) dropped 13.2% on Wednesday . The stock traded as low as GBX 1,928.50 ($26.10) and last traded at GBX 1,945.50 ($26.33). 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 ($30.33).

Wall Street Analyst Weigh In

ABF has been the subject of several recent research reports. Shore Capital reaffirmed a "buy" rating on shares of Associated British Foods in a report on Wednesday. Deutsche Bank Aktiengesellschaft downgraded Associated British Foods to a "sell" rating and decreased their price target for the stock from GBX 2,220 to GBX 2,130 in a report on Tuesday, August 26th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of GBX 2,215.

Get Our Latest Analysis on Associated British Foods

Associated British Foods Price Performance

The company has a 50-day simple moving average of GBX 2,197.56 and a 200-day simple moving average of GBX 2,080.26. The stock has a market cap of £13.84 billion, a PE ratio of 1,097.29, a PEG ratio of 1.51 and a beta of 1.24. 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 Buying and Selling at Associated British Foods

In other news, insider Eoin Tonge sold 16,741 shares of the firm's stock in a transaction on Thursday, July 3rd. The stock was sold at an average price of GBX 2,070, for a total value of £346,538.70. 1.49% of the stock is currently owned by corporate insiders.

Associated British Foods Company Profile

(Get Free Report)

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.

Further Reading

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