XTX Topco Reduces Stake in Cal-Maine Foods by 19.1%

XTX Topco Ltd has reduced its stake in Cal-Maine Foods, Inc. by 19.1% during the second quarter of 2023, according to data from Holdings Channel. The firm now holds 8,347 shares following the sale of 1,974 shares during this period. As of the end of the most recent reporting cycle, XTX Topco’s investment in Cal-Maine Foods was valued at approximately $832,000.

Other institutional investors have also adjusted their positions in the company. Notably, Truist Financial Corp increased its holdings by 3.5%, now owning 3,541 shares valued at $353,000 after acquiring an additional 121 shares. Evergreen Capital Management LLC reported a 2.5% increase, bringing its total to 5,898 shares worth $536,000. Sequoia Financial Advisors LLC expanded its stake by 6.1%, resulting in ownership of 2,664 shares valued at $265,000, while Unison Advisors LLC raised its holdings by 1.6% to 9,941 shares, valued at $990,000. IFP Advisors Inc notably lifted its stake by 195.1%, now owning 239 shares worth $25,000. Currently, institutional investors hold 84.67% of Cal-Maine Foods’ stock.

Analysts Adjust Price Targets for Cal-Maine Foods

Recent evaluations by analysts indicate a variety of outlooks for Cal-Maine Foods. Wall Street Zen downgraded the stock from a “buy” rating to a “hold” rating on August 23, 2023. Conversely, Benchmark initiated coverage with a “buy” rating and a target price of $100.00. The Goldman Sachs Group revised its price target down from $110.00 to $98.00, maintaining a “neutral” rating. Weiss Ratings reaffirmed a “buy (b-)” rating, while BMO Capital Markets lowered its target from $105.00 to $97.00 with a “market perform” rating. In total, two analysts have rated the stock as a buy, while three assigned a hold rating. Data from MarketBeat.com shows a consensus rating of “hold” with an average target price of $101.40.

Cal-Maine Foods’ shares opened at $83.63 on October 3, 2023. The company, which has a market capitalization of $4.06 billion, reports a price-to-earnings ratio of 3.22 and a beta of 0.21. The stock has fluctuated between a 12-month low of $79.55 and a high of $126.40. Its 50-day moving average stands at $90.22, while the 200-day moving average is at $99.34.

Quarterly Earnings Report and Dividend Declaration

Cal-Maine Foods released its quarterly earnings on October 1, 2023, reporting earnings per share (EPS) of $4.12, which fell short of analysts’ expectations of $4.55 by $0.43. The company’s revenue reached $922.60 million, slightly under the anticipated $931.62 million. The firm recorded a net margin of 28.86% and a return on equity of 52.31%, with revenue up by 17.4% compared to the previous year.

Additionally, Cal-Maine Foods declared a quarterly dividend of $1.37, which was paid on November 13, 2023. The dividend was distributed to investors of record on October 29, 2023, resulting in an annualized dividend of $5.48 and a yield of 6.6%. The current dividend payout ratio is 21.18%.

In other developments, insider Keira L. Lombardo acquired 2,800 shares of the company on October 2, 2023, at an average price of $92.36 per share, totaling approximately $258,608. Following this transaction, Lombardo holds 3,738 shares, reflecting a significant increase of 298.51% in her ownership. This transaction was disclosed in a filing with the Securities and Exchange Commission.

Cal-Maine Foods, Inc., along with its subsidiaries, specializes in the production, grading, packaging, marketing, and distribution of shell eggs. The company offers a range of specialty shell eggs, including nutritionally enhanced, cage-free, organic, free-range, and pasture-raised options under various brand names such as Egg-Land’s Best and Land O’ Lakes.