Cal-Maine Foods Stock Pops After Quarterly Win

BofA Global Research hiked its price target in reponse

Deputy Editor
Jul 20, 2022 at 9:41 AM
facebook twitter linkedin

The shares of Cal-Maine Foods Inc (NASDAQ:CALM) were last seen up 2.2% at $53.50, after the egg producer reported fiscal fourth-quarter earnings of $2.25 per share, compared to the profits of $1.84 cents per share analysts anticipated. Cal-Maine also reported a revenue beat, with results bolstered by higher egg prices, though an increase in feed costs is expected to continue in fiscal 2023. 

In response to the upbeat report, BofA Global Research hiked its price target on CALM to $50 from $44. Of the two analysts in coverage, one recommends a "strong buy," and the other a "sell."

Short sellers are making a break for the exits, with short interest down 15.3% in the two most recent reporting periods. However, the 4.66 million shares sold short still make up 12.4% of Cal-Maine Foods stock's available float, or over one week's worth of pent-up buying power.

The options pits for CALM are overwhelmingly bearish. This is per the security's 50-day put/call volume ratio of 3.43 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 95th percentile of its annual range. This means puts are being picked up at a much faster-than-usual clip.

On the charts, Cal-Maine Foods stock is climbing back toward its roughly seven-year highs in April. The equity bounced off of the $44 level with help from the 160-day moving average in early June, while a pre-earnings pullback was yesterday captured by the 20-day trendline. Longer term, Cal-Maine stock carries a 50.4% year-over-year lead. 


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Stock Pick Report


Special Offers from Schaeffer's Trading Partners