It has been a whirlwind of activity in the financial world, with some big players making significant moves. ExodusPoint Capital Management LP, a well-known institutional investor, recently cut its position in Cal-Maine Foods, Inc. (NASDAQ:CALM). The company disclosed that it had reduced its position by a staggering 54.7% during the fourth quarter of 2022, according to their recent filing with the Securities & Exchange Commission (SEC). This news raised eyebrows across the industry.
Before the move by ExodusPoint Capital Management LP, they owned 26,510 shares of Cal-Maine Foods’ stock. However, following the shedding of 32,004 shares during this period, they only owned 0.05% of the company’s shares worth $1,443,000 as of their most recent SEC filing. The drastic reduction indicates that there may have been some challenges that led to ExodusPoint Capital Management LP’s drastic decision.
In contrast to the sell-off story from ExodusPoint Capital Management LP is Cal-Maine Foods’ increase in dividend payout ratio. They recently announced that they had upped their quarterly dividend payments to shareholders from $1.35 per share to $2.20 per share, marking a considerable positive change for investors who rely on such income streams. Stockholders of record on Wednesday, April 26th received this dividend payment while those who bought after Tuesday 25th missed out on this windfall.
Cal-Maine Foods currently boasts an annualized dividend of $8.80 and at today’s share price offers investors an eye-watering yield of 17.81%. This definitely presents itself as an exciting opportunity for existing and potential stakeholders alike.
However impressive Cal-Maine’s earnings might be looking right now – EVP Charles Jeff Hardin recently sold over a thousand shares worth $72k – which at face-value seems like a red flag signaling growing unrest within rank-and-file staff in return for the prospects of an ever-higher dividend. Another questionably concerning figure from this same filing detailed that corporate insiders now own 13.49% of the company’s stock, which became accessible through a recent SEC link.
It remains to be seen what strategy ExodusPoint Capital Management LP is pursuing with its significant reduction of position in Cal-Maine Foods. The sudden move leaves investors and industry analysts curious about what might potentiate an institutional investor like them to make such large decisions during a time when everyone else seems to be piling into Cal-Maine Foods’ shares. However, one thing is clear – Cal-Maine Foods looks like it could be an excellent investment potential for anyone who needs their portfolio diversified beyond the regular mix-and-match options typically available on the market today.
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Analysts Divided on Investment Potential of Cal-Maine Foods Amidst Recent Share Ownership Changes and Dividend Increase
Cal-Maine Foods, a basic materials company, has seen recent changes in its share ownership by large investors. As of the third quarter, Healthcare of Ontario Pension Plan Trust Fund acquired a new position in Cal-Maine Foods shares worth approximately $3,947,000. Hodges Capital Management Inc. and Quadrature Capital Ltd also added to their stakes, while Citigroup Inc. and Nisa Investment Advisors LLC increased theirs significantly.
Equities research analysts have weighed in on Cal-Maine Foods’ performance. StockNews.com gave the company a “buy” rating, while Stephens downgraded it to an “equal weight” rating and lowered its stock price objective from $67 to $60.
Cal-Maine Foods recently announced an increase in its quarterly dividend from $1.35 to $2.20 per share, resulting in an annualized dividend yield of 17.81%. The company’s payout ratio is currently at 56.74%.
Shares of NASDAQ:CALM opened at $49.41 on June 11th, with a 1-year low of $43.96 and a high of $65.32 as part of a market capitalization of $2.42 billion. The business has a P/E ratio of 3.19 and a beta value of -0.04 with analysts predicting EPS growth for the current year.
Despite changes in share ownerships and earnings report showing positive growth for the company last year, analysts are divided on whether or not Cal-Maine Foods is generally conducive for investment in today’s market climate; only time will tell whether or not the power-house dependent on egg production will continue to sustainably drive profits for its stakeholders throughout this volatile period in modern history.