Why Cal-Maine Foods, Inc. Stock Dropped Today

Cal-Maine Foods gapped open lower Monday and fell during the first 45 minutes of trade.

Cal-Maine Foods, Inc. (CALM) is trading at $55.23 at a volume of 284,696 shares. The business’s revenue for the quarter was up 70.9% on a year-over-year basis. For each quarter when Cal-Maine reports net income, the company pays a cash dividend equal to one-third of that income.

Analysts surveyed by Thomson Reuters had forecast for earnings of $3.14 per share on revenue of $599.94 million for the fiscal first quarter. “There have been no positive tests for AI at any of the Cal-Maine Foods locations; however, we have strengthened our biosecurity measures at all of our facilities”. The firm has a 50 day moving average price of $53.59 and a 200-day moving average price of $49.82.

Nonetheless, the rise in earnings, to the equivalent of $2.95 per share, was a little short of market expectations of a $3.14-per-share result.

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 12th. For the 2016 fiscal year, analysts are looking for $11.83 in EPS and $2.39 billion in revenues. Four equities research analysts have rated the stock with a buy rating and two have assigned a strong buy rating to the stock. Stockholders of record on Wednesday, October 28th will be given a dividend of $0.983 per share. DA Davidson began coverage on shares of Cal-Maine Foods in a research report on Friday, June 26th. Finally, BB&T Corp. raised shares of Cal-Maine Foods from a hold rating to a buy rating and set a $62.00 price objective on the stock in a report on Monday, August 31st. Cal-Maine Foods now has a consensus rating of “Buy” and an average target price of $64.40. Southern Company (SO)’s weekly performance is 1.61% and compared to their 52 week low, they are up 8.44% with a dividend yield of 4.92%. Its primary business is the production, grading, packaging, marketing and distribution of shell eggs. The Company markets its shell eggs through its distribution network to a group of customers, including national and regional grocery store chains, club stores, foodservice distributors and egg product manufacturers. While there have been no further reported outbreaks of AI, we continue to closely monitor the situation and are working with egg industry associations and government officials to identify ways to mitigate the risk of future outbreaks. “With a full complement of conventional, nutritionally enhanced, cage-free and organic eggs, we are well positioned to capitalize on additional opportunities to market and sell specialty eggs in fiscal 2016”.