The Cal-Maine Foods Inc. (CALM) shares are trading at higher $43.71 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $47.25.
To add more color to this target, the company’s high over the last year is $46.65 and the low is $30.74. Over the last 52 weeks, CALM is down -6.30% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CALM reported a profit of $49.83 million. Cal-Maine Foods Inc. also saw revenues increase to $345.59 million. In addition, CALM has free cash flow of -$131.05 million as of 02-2020 The company’s EBITDA came in at $20.55 million which compares well with its peers.
CALM booked profit margins of -5.20%, its Return on Equity (ROE) is -6.50%, and its Return on Assets is -5.50%. All told, it is clear that, CALM needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CALM has a short ratio of 5.10 and outstanding shares of 48.47M.
CALM has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.36 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.28. Cal-Maine Foods Inc. CALM also noted assets of $1.12 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CALM has historically followed its peers on positive news.
All told, Cal-Maine Foods Inc. CALM has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CALM represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Cal-Maine Foods Inc. CALM is now commanding a market cap of 2.16B and a float of 30.31M. CALM is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CALM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in CALM, either long or short, and we have not been compensated for this article.