Yousif Capital Management LLC, a prominent investment firm, has recently reduced its holdings in Cal-Maine Foods, Inc. by 10.7% during the first quarter of this year. This move comes as a surprise to many industry experts, considering the potential growth prospects of the basic materials company.
According to the company’s latest 13F filing with the Securities and Exchange Commission (SEC), Yousif Capital Management LLC now owns 23,070 shares of Cal-Maine Foods’ stock after selling 2,775 shares during the aforementioned quarter. The market value of their holdings amounts to a substantial $1,405,000 at the end of this most recent quarter.
Cal-Maine Foods (NASDAQ:CALM) made big waves in the financial markets when it announced its quarterly earnings results on July 25th. The results far exceeded analysts’ consensus estimates as the company reported an impressive $2.27 earnings per share for the quarter, surpassing expectations by $0.89.
In addition to beating earnings estimates, Cal-Maine Foods also showcased robust financial metrics in terms of net margin and return on equity. The company recorded a net margin of 24.09% and an outstanding return on equity figure of 53.64%. Such remarkable figures highlight Cal-Maine Foods’ ability to generate profits and efficiently allocate capital.
Furthermore, Cal-Maine Foods reported revenue of $688.70 million for the quarter, demonstrating an excellent performance against analyst estimates that predicted it would generate approximately $612.94 million in revenue during this period. When compared to the corresponding quarter in the previous year, where it posted earnings per share of $2.25, it becomes clear that Cal-Maine Foods has made significant strides over time.
The consistent growth in revenue signifies a positive trend for this basic materials company, which operates within the egg production and distribution sector. Cal-Maine Foods aims to satisfy consumers’ preferences by offering a diverse range of specialty shell eggs. These include nutritionally enhanced, cage-free, organic, and brown eggs under its renowned brand names such as Egg-Land’s Best, Land O’ Lakes, Farmhouse Eggs, and 4-Grain.
In addition to their branded offerings, Cal-Maine Foods also manufactures private-label shell eggs for various retailers. This signifies the company’s versatility and ability to cater to a wide range of markets and customer preferences.
Considering the impressive financial results showcased by Cal-Maine Foods in its latest earnings report, analysts remain optimistic about the company’s future prospects. They predict that Cal-Maine Foods will post 4.2 earnings per share for the current fiscal year – a figure that further solidifies confidence in the company’s growth trajectory.
Cal-Maine Foods has proven itself as a formidable player within the egg industry with its commitment to quality products and diverse offerings that meet varying consumer demands. Despite Yousif Capital Management LLC decreasing its holdings in the company, many investors recognize this as an opportunity to invest in a potentially lucrative business that continues to defy expectations.
As we move forward into this new era of economic recovery after unprecedented challenges faced by various industries worldwide, companies such as Cal-Maine Foods exemplify resilience and adaptability. Their ability to generate strong financial performance amidst adversity is commendable and serves as inspiration for other businesses seeking similar success.
In conclusion, Yousif Capital Management LLC reducing its holdings in Cal-Maine Foods should not overshadow the compelling growth opportunities present within this basic materials company. With an exceptional track record of delivering excellent financial results and offering a wide array of specialty shell eggs catering to different consumer preferences, Cal-Maine Foods stands poised for continued success in the years ahead.
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Institutional Investors Show Strong Interest in Cal-Maine Foods as Company Continues to Perform Well in the Market
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”CALM” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]August 2, 2023 – Cal-Maine Foods, Inc., a leading producer and distributor of shell eggs, has seen many institutional investors modify their holdings recently. One such investor is Man Group plc, whose position in Cal-Maine Foods grew by an astounding 3,503.9% during the fourth quarter of the previous year. This increase translates to Man Group now owning 508,724 shares of the company’s stock, valued at approximately $27.7 million.
Not to be outdone, Vanguard Group Inc., another institutional investor, also saw significant growth in their holdings of Cal-Maine Foods. Their position increased by 9.8% during the third quarter, with Vanguard now owning 4,992,618 shares worth around $277.5 million.
Jupiter Asset Management Ltd., yet another institutional investor that holds shares of Cal-Maine Foods, experienced a staggering growth rate as well. Their position increased by an impressive 314.9% during the fourth quarter of the previous year. Jupiter Asset Management now owns 446,799 shares valued at approximately $24.3 million.
Pacer Advisors Inc., a prominent investment management firm, witnessed a substantial increase in their position in Cal-Maine Foods during the first quarter of this year. Their stake grew by an astonishing 117.7%, with Pacer Advisors now holding 598,146 shares valued at around $36.4 million.
Goldman Sachs Group Inc., a renowned investment banking firm and institutional investor in Cal-Maine Foods’ stock market performance also grew significantly during the second quarter with an impressive growth rate of 319.9%. Goldman Sachs Group Inc.’s current ownership stands at 201,271 shares valued at approximately $9.94 million.
Overall, it is worth noting that institutional investors and hedge funds own a significant majority – specifically about 84.74% – of Cal-Maine Foods’ stock.
In terms of market performance, shares of Cal-Maine Foods (NASDAQ: CALM) opened at $45.66 on Wednesday. The company’s stock has seen a range in the past year, with a low of $43.29 and a high of $65.32. As of August 2, 2023, Cal-Maine Foods has a 50-day moving average price of $46.15 and a 200-day moving average price of $51.40.
With regard to the company’s financial standing and valuation metrics, Cal-Maine Foods currently holds a market capitalization of approximately $2.24 billion. Its price-to-earnings (P/E) ratio sits at an impressive 2.94, while the P/E to growth (P/E/G) ratio is pegged at 0.66 – indicating potential value for investors. The company also boasts an intriguing beta of -0.06, suggesting that its stock may not experience significant fluctuations compared to the broader market.
Cal-Maine Foods specializes in producing, grading, packaging, marketing, and distributing shell eggs across its operation network with various brand names such as Egg-Land’s Best, Land O’ Lakes, Farmhouse Eggs, and 4-Grain brand names as well as under private labels including nutritionally enhanced eggs or those that are cage-free or organic.
Furthermore, Cal-Maine Foods recently declared a quarterly dividend that will be paid on Tuesday, August 22nd. Shareholders who are recorded as such on Monday, August 7th will receive a dividend of $0.76 per share owned by them. This dividend represents an annualized rate of $3.04 per share and offers shareholders an attractive yield of 6.66%. The ex-dividend date – the date after which shares bought no longer come with the right to receive an upcoming dividend payment – is slated for Friday , August 4th. Cal-Maine Foods currently has a payout ratio of 56.66%.
Numerous brokerages have shared their assessments of Cal-Maine Foods’ prospects recently as well. StockNews.com, for example, downgraded their rating from “buy” to “hold” in a research report published on June 21st. Moreover, Stephens, a financial services firm, lowered its price target for Cal-Maine Foods from $50.00 to $47.00 in a report released on July 26th.
Additionally, renowned investment banking firm The Goldman Sachs Group also decreased its price target on shares of Cal-Maine Foods from $43.00 to $40.00 in a report issued on July 6th.
As the company continues to capture the attention of institutional investors and garner interest with its extensive product offerings and consistent dividends, it remains poised to navigate the complexities of the market with confidence and deliver value to its stakeholders.
