Cal-Maine Foods (NASDAQ:CALM) Trading Down 5.5% – Should You Sell?

Cal-Maine Foods, Inc. (NASDAQ:CALM)’s share price was down 5.5% on Thursday . The stock traded as low as $77.62 and last traded at $78.7490. Approximately 259,546 shares traded hands during trading, a decline of 79% from the average daily volume of 1,213,039 shares. The stock had previously closed at $83.36.

Cal-Maine Foods News Summary

Here are the key news stories impacting Cal-Maine Foods this week:

• Positive Sentiment: Company beat consensus on EPS and showed resilient margins and bottom?line performance, which prompted an initial rally after results. Why Cal?Maine Foods Stock Won Big on Wednesday
• Positive Sentiment: Management highlights expanding specialty eggs and prepared?foods segments that are reshaping the company’s earnings mix and helping to cushion swings in commodity egg pricing. Cal Maine Foods Deepens Integration As Specialty Eggs Reshape Earnings Profile
• Positive Sentiment: Board strengthened with the addition of an experienced independent director, a governance move investors view as supportive for strategy and capital allocation. Cal?Maine Foods Welcomes Dudley D. Wooley to Board
• Neutral Sentiment: Wall Street reaction is mixed across food names after earnings; analysts see Cal?Maine as a relative bright spot but the sector backdrop remains uncertain. What Wall Street Expects From These 3 Food Giants After Mixed Earnings
• Negative Sentiment: Sales plunged (~53% YoY) as conventional egg prices collapsed from last year’s highs, a top?line hit that constrains upside despite the EPS beat. Cal?Maine Foods Sales Sink on Lower Egg Prices
• Negative Sentiment: Coverage notes a pricing collapse that severely pressured revenue and year?ago EPS (which was much higher), underscoring earnings volatility tied to commodity egg prices. Pricing Collapse Crushes EPS, But Diversifying Limits Damage
• Negative Sentiment: Context pieces show conventional egg prices tumbled as much as ~70% into Easter, pressuring industry revenue and likely prompting some investor profit?taking after the post?earnings pop. Just in time for Easter: Egg prices tumbled 70%

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on CALM shares. Weiss Ratings restated a “hold (c+)” rating on shares of Cal-Maine Foods in a research note on Friday, March 27th. Benchmark reiterated a “buy” rating on shares of Cal-Maine Foods in a research report on Tuesday, March 3rd. BMO Capital Markets reduced their price target on shares of Cal-Maine Foods from $85.00 to $80.00 and set a “market perform” rating for the company in a research report on Wednesday, March 25th. Finally, Stephens lifted their price objective on shares of Cal-Maine Foods from $85.00 to $90.00 and gave the company an “equal weight” rating in a research note on Wednesday, March 18th. One analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $93.00.

Cal-Maine Foods Trading Down 6.2%

The firm has a 50-day simple moving average of $83.65 and a two-hundred day simple moving average of $86.16. The company has a market capitalization of $3.72 billion, a price-to-earnings ratio of 3.30 and a beta of 0.26.

Cal-Maine Foods (NASDAQ:CALM) last issued its quarterly earnings data on Wednesday, April 1st. The basic materials company reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.17. Cal-Maine Foods had a return on equity of 44.55% and a net margin of 27.37%.The business had revenue of $666.95 million during the quarter, compared to analysts’ expectations of $655.82 million. During the same quarter in the previous year, the firm posted $10.39 EPS. The company’s revenue for the quarter was down 53.0% on a year-over-year basis. Equities research analysts anticipate that Cal-Maine Foods, Inc. will post 15.59 EPS for the current year.

Cal-Maine Foods Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, February 12th. Shareholders of record on Wednesday, January 28th were given a $0.72 dividend. This represents a $2.88 annualized dividend and a yield of 3.7%. The ex-dividend date was Wednesday, January 28th. Cal-Maine Foods’s dividend payout ratio is currently 12.21%.

Hedge Funds Weigh In On Cal-Maine Foods

Several institutional investors have recently made changes to their positions in CALM. Wedge Capital Management L L P NC increased its position in shares of Cal-Maine Foods by 1,085.8% during the third quarter. Wedge Capital Management L L P NC now owns 259,445 shares of the basic materials company’s stock worth $24,414,000 after purchasing an additional 237,566 shares in the last quarter. Principal Financial Group Inc. boosted its stake in Cal-Maine Foods by 6.5% during the 3rd quarter. Principal Financial Group Inc. now owns 268,026 shares of the basic materials company’s stock worth $25,221,000 after purchasing an additional 16,251 shares during the last quarter. Range Financial Group LLC boosted its stake in Cal-Maine Foods by 1,274.2% during the 3rd quarter. Range Financial Group LLC now owns 30,122 shares of the basic materials company’s stock worth $2,834,000 after purchasing an additional 27,930 shares during the last quarter. CX Institutional purchased a new stake in shares of Cal-Maine Foods during the third quarter worth $6,488,000. Finally, New York State Common Retirement Fund grew its holdings in shares of Cal-Maine Foods by 42.2% during the third quarter. New York State Common Retirement Fund now owns 33,051 shares of the basic materials company’s stock worth $3,110,000 after buying an additional 9,805 shares in the last quarter. 84.67% of the stock is owned by hedge funds and other institutional investors.

Cal-Maine Foods Company Profile

Cal-Maine Foods, Inc, together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs. The company offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, free-range, pasture-raised, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, Sunups, Sunny Meadow, and 4Grain brand names. It sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, foodservice distributors, and egg product consumers primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States.