News Scholarship
Share price ForFarmers to lowest level ever
ForFarmers has lost a lot of value on the Amsterdam stock exchange in recent days. The price is at its lowest level ever since the public IPO in 2016. The publication of the half-year figures of the feed group at the end of last week, which CEO Yoram Knoop himself already called 'disappointing', has also not been to the liking of investors. In addition, the APG pension fund has halved its interest in ForFarmers.
The ForFarmers share was still quoted at almost €12 last Thursday, August 5,00. This afternoon (Tuesday) the stock was trading at around €4,40 per share, the lowest level ever. This means that the fund is worth about 12% less than last week. The price has been trending lower since the summer of 2018. Then it topped out at $12. Investors in ForFarmers pieces have since seen more than 60% of their assets evaporate.
Numbers lead to lower price targets
Stock market analysts from a number of companies lowered the price targets for the ForFarmers share in response to the disappointing half-year figures. Analysts at KBC Securities lowered the target price from €6,00 to €5,50, while analysts from Degroof Petercam went a step further and set the target price at €5,20.
In addition, on Monday, the news came that pension fund APG has halved its interest in ForFarmers. In the year of the IPO (2016), the asset manager first reported a stake of 6,71%, which was increased to 2018% in 10,00. In April of this year, the company reported a 9,98% stake. APG has now reduced its interest in ForFarmers to 4,85%, according to the registers of the Netherlands Authority for the Financial Markets. Parties must report here if they have an interest of more than 3% in a listed company.
The news seems to be causing new doubts among investors. The ForFarmers share is trading almost 14.30% lower today (Tuesday) at 4 at approximately €4,41. At the presentation of its half-year results, the company announced that margins are under pressure as a result of fierce competition in the compound feed market and higher purchasing costs, which are difficult to pass on to customers.
Steve Wissink
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
