Steve W. Sanders, a director at Cal-Maine Foods Inc. (NASDAQ:CALM), has recently sold a portion of his holdings in the company. According to a recent SEC filing, Sanders sold 750 shares of common stock on January 14 at a price of $109.97 per share, totaling approximately $82,477. The sale occurred as CALM trades near its 52-week high of $114.06, with the stock delivering an impressive 115.7% return over the past year. InvestingPro analysis suggests the stock is currently slightly undervalued. Following this transaction, Sanders now holds 25,420 shares directly.
In addition to the sale, Sanders acquired 982 shares of restricted stock as part of a grant. These shares were acquired at no cost and are set to vest on the third anniversary of the grant date. This acquisition brings his total direct ownership to 26,402 shares.
In other recent news, Cal-Maine Foods reported robust second-quarter earnings and revenue, surpassing analyst expectations. The company announced an adjusted earnings per share (EPS) of $4.48, significantly higher than the projected $4.25 by Stephens and $4.05 consensus estimate. Adjusted EBITDA also exceeded expectations, reaching $325.4 million, surpassing the predicted $282.4 million by Stephens and $303.7 million consensus estimate. These results were driven by increased sales and reduced selling, general and administrative expenses, though counterbalanced by a lower gross margin.
Additionally, Cal-Maine Foods revealed plans to invest approximately $60 million in new capital projects to expand cage-free egg production capacity. This expansion is expected to add capacity for about 1.1 million cage-free layer hens by late summer 2025. The company also declared a quarterly dividend of $1.49 per share.
Following these developments, Stephens maintained an Equal Weight rating on Cal-Maine Foods shares and raised its price target from $88 to $97. Analysts at Stephens project that the company is poised for continued significant earnings growth, especially considering the ongoing impact of the Highly Pathogenic Avian Influenza (HPAI) and the current high pricing levels for eggs in the third fiscal quarter. These are the most recent developments in the company's performance and outlook.
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