Cal-Maine Foods (NASDAQ:CALM) Reaches New 1-Year Low - Here's Why

Key Points

• Cal-Maine Foods shares hit a new 52-week low, falling to $63.34 and trading below both their 50-day and 200-day moving averages.
• The company’s latest quarterly results missed expectations: EPS was a loss of $1.26 versus an estimated loss of $0.77, while revenue fell 41.5% year over year to $539.61 million.
• Analyst sentiment is cautious, with an overall “Hold” rating, five Hold recommendations, one Buy, and a consensus price target of $84.17; Goldman Sachs set the lowest cited target at $60.

Shares of Cal-Maine Foods, Inc. (NASDAQ:CALM - Get Free Report) reached a new 52-week low on Tuesday. The stock traded as low as $63.34 and last traded at $63.40, with a volume of 1765460 shares. The stock had previously closed at $64.99.

Analyst Ratings Changes

A number of brokerages recently commented on CALM. Wall Street Zen lowered Cal-Maine Foods from a "sell" rating to a "strong sell" rating in a research note on Saturday, September 26th. Wells Fargo & Company set a $100.00 price target on shares of Cal-Maine Foods in a research note on Monday, July 13th. BMO Capital Markets reissued a "market perform" rating and set a $75.00 target price (down from $83.00) on shares of Cal-Maine Foods in a research note on Thursday, September 24th. The Goldman Sachs Group set a $60.00 price target on Cal-Maine Foods in a research report on Thursday. Finally, Weiss Ratings downgraded shares of Cal-Maine Foods from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $84.17.

Cal-Maine Foods Price Performance

The company's 50 day moving average price is $78.04 and its two-hundred day moving average price is $78.86. The stock has a market capitalization of $2.97 billion, a PE ratio of 54.19 and a beta of 0.25.

Cal-Maine Foods (NASDAQ:CALM - Get Free Report) last posted its earnings results on Wednesday, September 30th. The basic materials company reported ($1.26) EPS for the quarter, missing analysts' consensus estimates of ($0.77) by ($0.49). The company had revenue of $539.61 million during the quarter, compared to analyst estimates of $561.57 million. Cal-Maine Foods had a net margin of 2.32% and a return on equity of 2.21%. The company's quarterly revenue was down 41.5% compared to the same quarter last year. During the same period in the previous year, the company earned $4.12 EPS.

Institutional Trading of Cal-Maine Foods

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Pinnacle Holdings LLC purchased a new position in Cal-Maine Foods in the 2nd quarter valued at approximately $31,000. Versant Capital Management Inc boosted its holdings in shares of Cal-Maine Foods by 257.7% during the third quarter. Versant Capital Management Inc now owns 626 shares of the basic materials company's stock worth $43,000 after purchasing an additional 451 shares during the last quarter. CoreCap Advisors LLC grew its holdings in Cal-Maine Foods by 13.5% in the 2nd quarter. CoreCap Advisors LLC now owns 1,153 shares of the basic materials company's stock valued at $93,000 after buying an additional 137 shares during the period. Himension Capital Singapore PTE. LTD. acquired a new position in Cal-Maine Foods during the first quarter worth approximately $111,000. Finally, Compass Financial Management LLC purchased a new position in shares of Cal-Maine Foods in the 2nd quarter worth $153,000. Hedge funds and other institutional investors own 84.67% of the company's stock.

Cal-Maine Foods Company Profile

Cal-Maine Foods, Inc is a major producer and distributor of shell eggs in the United States. The company supplies eggs to grocery retailers, foodservice operators, food distributors and institutional customers under both its own brands and private-label programs.

Its product portfolio includes conventional eggs as well as specialty products such as cage-free, organic, free-range, brown, pasture-raised and nutritionally enhanced eggs. Cal-Maine also markets hard-boiled eggs and other value-added egg products, and sells eggs through a network of production, processing, packaging and distribution facilities.

Founded in 1969 and headquartered in Jackson, Mississippi, Cal-Maine serves customers throughout the United States and has expanded through acquisitions and investments in production capacity.

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