Recently, &HRT Financial LP reported a 50.3% decrease in its holdings of Cal-Maine Foods, Inc. In its latest filing with the Securities & Exchange Commission, the company revealed that it sold 64,419 shares of the basic materials company’s stock in Q4. As a result, HRT Financial LP now owns approximately 0.13% of Cal-Maine Foods worth $3,463,000 by the end of this quarter.
Apart from this, Cal-Maine Foods also announced its quarterly dividend on May 11th for stockholders who were recorded on April 26th. The amount equated to $2.20 per share at an annualized basis and a yield of 18.21%. This is an increase from the previous quarter’s dividend payout ratio of $1.35.
Several equities research analysts have shared their opinions on CALM stocks lately. For instance, Stephens downgraded Cal-Maine Foods’ rating from overweight to equal weight and lowered their pricing estimate from $67 to $60 based on findings from April-end research notes. Meanwhile, StockNews.com released a buy rating in responding coverage note back in May.
While there are clear influences influencing Cal-Maine Foods’ shareholder value recently such as hold sell-offs and upgraded dividends – one must watch closely how upcoming developments may impact them going forward in both territory and partnership perspective alike.
Mississippi egg producer, Cal-Maine Foods, buoyed by fresh investment and solid Q3 results
Cal-Maine Foods, the Mississippi-based egg producer, has been buoyed by fresh investment from several institutional investors. Signaturefd LLC added 253 shares to its stake in Cal-Maine while Quadrant Capital Group LLC boosted its holding by more than 500 shares. Guardian Wealth Advisors purchased a new stake worth $35,000 while Strs Ohio bought a $38,000 investment. Finally, Parallel Advisors increased its stake by 41%, purchasing an additional 244 shares at a value of $46,000. Altogether, institutional investors now own almost 89% of the company’s stock.
However, there has been some insider selling at the egg producer. EVP Charles Jeff Hardin sold 1,201 shares for about $72k in March and now owns a total of 4,194 of company stock worth approximately $252k. Insiders hold around 13.49% of Cal-Maine Foods’ shares.
Despite this mix of ownership movements and sales activity on NASDAQ:CALM shares – which opened yesterday at $48.33 – the third-quarter results for Cal-Maine showed solid earnings growth and exceeded analyst estimates. The company reported earnings per share (EPS) of $6.62 for Q3 and revenue came in at just under $1bn for the quarter.
Significantly higher than the expected revenue figures as predicted earlier by analysts measuring approximately USD898mn; it is no wonder that CALM beat all expectations previously held up against it as regards reaching overall market performance set goals coupled with maintaining consumer satisfaction levels resultant from product offerings and services provision respectively.
This marks an impressive turnaround for the company which battled through difficulties throughout 2017 following an oversupply crisis within the egg production industry that affected many firms’ profits.
Cal-Maine’s strong performance in Q3 led to a hike in quarterly dividends paid out to shareholders last month compared to December’s $1.35 dividend. On 11 May, Cal-Maine paid out a dividend of $2.20 to stockholders who were in possession of shares by close of play on 26 April.
As the company moves forward in 2018, it remains to be seen how the ongoing trade disputes between China and the US will ultimately affect egg production prices and demand. However, having rebounded from 2017’s oversupply difficulties, Cal-Maine Foods looks set to adopt an agile attitude as it navigates a potentially tricky future for its core product offerings.
Despite this uncertainty, short-term projections suggest that Cal-Maine has weathered recent storms well with many analysts predicting that earnings per share will plateau at around 16.25 over the current fiscal year. Meanwhile, CALM’s high – yet stable – dividend yields indicate that investors are likely to remain loyal to one of America’s leading egg producers for years to come.
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