Cal-Maine Foods (NASDAQ:CALM) Shares Gap Down on Disappointing Earnings

Shares of Cal-Maine Foods, Inc. (NASDAQ:CALM) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $94.10, but opened at $87.00. Cal-Maine Foods shares last traded at $92.62, with a volume of 584,624 shares traded.

The basic materials company reported $4.12 EPS for the quarter, missing analysts’ consensus estimates of $4.55 by ($0.43). The firm had revenue of $922.60 million for the quarter, compared to analysts’ expectations of $931.62 million. Cal-Maine Foods had a net margin of 28.63% and a return on equity of 54.81%. The firm’s quarterly revenue was up 17.4% on a year-over-year basis. During the same period in the prior year, the company earned $3.06 EPS.

Cal-Maine Foods Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 19th. Shareholders of record on Monday, August 4th were issued a dividend of $3.46 per share. This represents a $13.84 annualized dividend and a yield of 14.9%. This is a boost from Cal-Maine Foods’s previous quarterly dividend of $1.49. The ex-dividend date of this dividend was Monday, August 4th. Cal-Maine Foods’s payout ratio is currently 37.76%.

Analyst Ratings Changes

Several equities analysts have recently weighed in on CALM shares. The Goldman Sachs Group began coverage on shares of Cal-Maine Foods in a research note on Thursday, August 14th. They issued a “neutral” rating and a $110.00 target price for the company. Stephens raised their price objective on shares of Cal-Maine Foods from $108.00 to $115.00 and gave the stock an “equal weight” rating in a report on Thursday, July 24th. Wall Street Zen lowered shares of Cal-Maine Foods from a “buy” rating to a “hold” rating in a research note on Saturday, August 23rd. Finally, BMO Capital Markets increased their target price on Cal-Maine Foods from $100.00 to $105.00 and gave the stock a “market perform” rating in a research report on Thursday, July 24th. Three equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $110.00.

Institutional Trading of Cal-Maine Foods

Large investors have recently modified their holdings of the business. IFP Advisors Inc increased its position in shares of Cal-Maine Foods by 195.1% in the second quarter. IFP Advisors Inc now owns 239 shares of the basic materials company’s stock worth $25,000 after purchasing an additional 158 shares during the last quarter. Financial Management Professionals Inc. bought a new position in shares of Cal-Maine Foods in the 1st quarter worth $30,000. Investment Management Corp VA ADV increased its holdings in shares of Cal-Maine Foods by 172.2% in the 1st quarter. Investment Management Corp VA ADV now owns 392 shares of the basic materials company’s stock worth $36,000 after buying an additional 248 shares during the last quarter. AdvisorNet Financial Inc purchased a new stake in shares of Cal-Maine Foods during the 2nd quarter valued at $54,000. Finally, Caitong International Asset Management Co. Ltd bought a new stake in shares of Cal-Maine Foods during the 1st quarter worth $52,000. Institutional investors own 84.67% of the company’s stock.

Cal-Maine Foods Stock Down 1.2%

The company has a market capitalization of $4.56 billion, a PE ratio of 3.73 and a beta of 0.22. The firm’s 50-day moving average is $107.54 and its 200-day moving average is $100.30.

About Cal-Maine Foods

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.