Cal-Maine Foods Stock Pops After Quarterly Win

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The company reported fiscal fourth-quarter earnings of $2.25 per share

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.