Cal-Maine Foods, Inc. (NASDAQ:CALM) to Issue Quarterly Dividend of $1.37

Key Points

• Cal-Maine Foods, Inc. has announced a quarterly dividend of $1.37 per share, with an annual yield of 6.0%, set to be paid on November 13th to shareholders of record on October 29th.
• The company has a high dividend payout ratio of 426.2%, indicating it currently cannot cover its dividend with earnings and may struggle to do so in the future, especially with expected earnings of $4.69 per share next year.
• Cal-Maine Foods reported earnings of $4.12 EPS for the most recent quarter, which missed analysts' expectations, with significant year-over-year revenue growth of 17.4% despite revenue falling short of forecasts.

Cal-Maine Foods, Inc. (NASDAQ:CALM - Get Free Report) announced a quarterly dividend on Wednesday, October 1st. Shareholders of record on Wednesday, October 29th will be given a dividend of 1.37 per share by the basic materials company on Thursday, November 13th. This represents a c) annualized dividend and a yield of 6.0%. The ex-dividend date of this dividend is Wednesday, October 29th.

Cal-Maine Foods has a dividend payout ratio of 426.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Cal-Maine Foods to earn $4.69 per share next year, which means the company may not be able to cover its $13.98 annual dividend with an expected future payout ratio of 298.1%.

Cal-Maine Foods Price Performance

CALM stock traded down $0.97 during midday trading on Thursday, hitting $91.99. The stock had a trading volume of 546,671 shares, compared to its average volume of 960,775. The firm has a market cap of $4.51 billion, a PE ratio of 3.69 and a beta of 0.22. Cal-Maine Foods has a 12-month low of $75.61 and a 12-month high of $126.40. The company's 50-day moving average price is $107.54 and its 200 day moving average price is $100.30.

Cal-Maine Foods (NASDAQ:CALM - Get Free Report) last released its earnings results on Wednesday, October 1st. The basic materials company reported $4.12 EPS for the quarter, missing the consensus estimate of $4.55 by ($0.43). The firm had revenue of $922.60 million during the quarter, compared to analysts' expectations of $931.62 million. Cal-Maine Foods had a return on equity of 54.81% and a net margin of 28.63%.The firm's revenue was up 17.4% on a year-over-year basis. During the same period in the previous year, the firm posted $3.06 earnings per share. As a group, sell-side analysts anticipate that Cal-Maine Foods will post 15.59 EPS for the current year.

Institutional Trading of Cal-Maine Foods

Institutional investors have recently added to or reduced their stakes in the business. IFP Advisors Inc boosted its position in Cal-Maine Foods by 195.1% during the 2nd 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 period. Financial Management Professionals Inc. acquired a new position in Cal-Maine Foods in the 1st quarter worth $30,000. Investment Management Corp VA ADV lifted its holdings in 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 in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Cal-Maine Foods in the 1st quarter worth $52,000. Finally, AdvisorNet Financial Inc acquired a new position in Cal-Maine Foods in the 2nd quarter worth $54,000. 84.67% of the stock is owned by hedge funds and other institutional investors.

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.

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