Cal-Maine Foods Stock Slides on Surprise Quarterly Losses

Year-over-year, the security has already shed over 20%

Digital Content Manager
Jul 19, 2021 at 10:43 AM
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The shares of Cal-Maine Foods Inc (NASDAQ:CALM) are down 3.1% at $35.08 at last check, after the egg producer reported surprise fiscal fourth-quarter losses of 9 cents per share, compared to the profits of 18 cents per share analysts anticipated. Cal-Maine also noted the average sale price of shell eggs fell to $1.32 per dozen, as opposed to $1.58 for the same period last year, as more people opted to to dine out amid easing Covid-19 restrictions.

Cal-Maine stock has been on a downward trend since surging to the $43 level in March. In fact, the 60-day moving average emerged as a ceiling in April, pressuring CALM shares to a July 7, annual low of $34.42. Longer term, Cal-Maine stock carries a 20.8% year-over-year deficit.

Analysts are split towards Cal-Maine Foods stock. Of the two in coverage, one sports a "strong buy" rating, while the other calls it a "sell." Meanwhile, the 12-month consensus target price of $41.67 is an 18.9% premium to current levels, indicating price-target cuts may be on the horizon. 

The options pits for Cal-Maine stock are overwhelmingly bullish, however, with calls popular. This is per CALM's 50-day call/put volume ratio of 9.43 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 84th percentile of its annual range. This means calls are being picked up at a faster-than-usual clip.

Drilling down to today's options activity, 304 calls and 29 puts have crossed the tape so far, or seven times the intraday average. Most popular is the August 37.50 call, followed by the 35 put in the same series.






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