Hound Partners LLC Buys 126,510 Shares of Cal-Maine Foods, Inc. $CALM

Key Points

• Hound Partners significantly increased its Cal-Maine Foods position by 163.6% in the first quarter, adding 126,510 shares to own 203,851 shares valued at approximately $16.1 million. Institutional investors collectively own 84.67% of the company.
• Cal-Maine Foods reported a sharp earnings decline, posting a quarterly loss of $0.76 per share versus the $0.08 consensus estimate, while revenue fell 49.9% year over year to $552.6 million.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $94.71, compared with a reported opening price of $90.32.

Hound Partners LLC grew its position in shares of Cal-Maine Foods, Inc. (NASDAQ:CALM - Free Report) by 163.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 203,851 shares of the basic materials company's stock after acquiring an additional 126,510 shares during the quarter. Cal-Maine Foods accounts for approximately 2.0% of Hound Partners LLC's portfolio, making the stock its 15th largest holding. Hound Partners LLC owned about 0.43% of Cal-Maine Foods worth $16,135,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in the company. SummitTX Capital L.P. raised its holdings in shares of Cal-Maine Foods by 29.1% in the first quarter. SummitTX Capital L.P. now owns 20,417 shares of the basic materials company's stock valued at $1,616,000 after purchasing an additional 4,599 shares during the last quarter. Cypress Capital Group boosted its holdings in Cal-Maine Foods by 10.6% during the first quarter. Cypress Capital Group now owns 26,059 shares of the basic materials company's stock worth $2,063,000 after purchasing an additional 2,503 shares during the last quarter. OMERS ADMINISTRATION Corp boosted its holdings in Cal-Maine Foods by 52.1% during the first quarter. OMERS ADMINISTRATION Corp now owns 51,507 shares of the basic materials company's stock worth $4,077,000 after purchasing an additional 17,646 shares during the last quarter. Lombard Odier Asset Management USA Corp bought a new stake in Cal-Maine Foods in the 1st quarter worth about $283,000. Finally, Entropy Technologies LP bought a new stake in Cal-Maine Foods in the 1st quarter worth about $327,000. Institutional investors own 84.67% of the company's stock.

Cal-Maine Foods Stock Performance

CALM opened at $90.32 on Monday. Cal-Maine Foods, Inc. has a fifty-two week low of $71.92 and a fifty-two week high of $117.45. The firm has a 50-day moving average of $80.57 and a 200 day moving average of $80.50. The firm has a market cap of $4.28 billion, a P/E ratio of 13.79 and a beta of 0.25.

Cal-Maine Foods (NASDAQ:CALM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported ($0.76) EPS for the quarter, missing the consensus estimate of $0.08 by ($0.84). The company had revenue of $552.58 million during the quarter, compared to the consensus estimate of $563.83 million. Cal-Maine Foods had a return on equity of 11.79% and a net margin of 10.88%.The business's revenue was down 49.9% on a year-over-year basis. During the same period in the prior year, the firm posted $7.04 EPS.

Wall Street Analyst Weigh In

Several equities analysts have commented on CALM shares. Wall Street Zen cut shares of Cal-Maine Foods from a "hold" rating to a "sell" rating in a research report on Saturday. Wells Fargo & Company set a $100.00 target price on Cal-Maine Foods in a report on Monday, July 13th. Weiss Ratings lowered Cal-Maine Foods from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday. Stephens decreased their price target on Cal-Maine Foods from $90.00 to $85.00 and set an "equal weight" rating for the company in a research report on Tuesday, July 14th. Finally, Royal Bank Of Canada set a $100.00 price target on Cal-Maine Foods in a report on Tuesday, May 26th. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, Cal-Maine Foods presently has a consensus rating of "Hold" and an average target price of $94.71.

Cal-Maine Foods 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.

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