On May 15, 2023, Russell Investments Group Ltd. announced a substantial increase in its stake in Cal-Maine Foods, Inc (NASDAQ:CALM). The investment group reportedly raised its holdings by 44.7% during the fourth quarter of the previous financial year. According to disclosures made to the Securities and Exchange Commission (SEC), Russell Investments Group acquired an additional 40,115 shares of CALM’s basic materials amidst what is shaping up to be a challenging period for essential commodities like food.
This move was not unexpected as investors continue to look for secure ventures that can weather challenging market environments. With its long-term outlook, Cal-Maine’s stock has demonstrated resilience by offering investors steady returns even in uncertain times.
The acquisition brings Russell Investments Group’s total ownership of CALM to around 0.27%, worth approximately $6,899,000 based on the most recent SEC filings. This marks a firm commitment from Russell Investments Group towards increasing its exposure to resilient and established businesses. Despite fluctuations in commodity prices and political instability, many essential services remain resilient investments.
In another development at the company, an executive vice president at Cal-Maine Foods has sold off some of their personal holdings in their company’s stock. Charles Jeff Hardin took advantage of a brief spike in CALM’s value this past quarter by selling off 1,201 shares for $72,240, giving him profit on his initial investment.
Despite fears over inflation and global supply chain challenges facing Cal-Maine Foods stockholders this year, investing analysts still have high hopes for it based on strong prospects for steady growth over the next decade.
Cal-Maine Foods had been trading between $43.96 and $65.32 until recently when it opened at $47.05 due to rising uncertainty surrounding resources globally amid fears of economic recession among other issues such as political turmoil in certain countries which can lead to sanctions or severe export limitations.
Furthermore, CALM’s 50-day simple moving average stands at $53.78, while its 200-day average is $55.84; indicating short-term volatility and mild resistance to sharp changes in large holdings in the company
The company’s market capitalisation currently stands at $2.30 billion, a price-to-earnings ratio of 3.03, and a price-to-earning growth rate of 0.19; hence calling for more scrutiny from investors intending to invest or divest up their portfolio with this stock.
In conclusion, buying into stocks that provide reliable investments and demonstrate stability during economic downturns can be a wise investment strategy for investors. This move by Russell Investments Group Ltd., coupled with Mr Hardin’s sale of some of his shares, highlights efforts to seek more secure investments amidst tumultuous times while insisting on rolling over losses and relying on data-driven methods to maximize profit growth potential for both investors and the companies they back up long-term.
Updated on: 15/05/2023
Debt to equity ratio: Neutral
Price to earnings ratio: Buy
Price to book ratio: Strong Buy
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| Ben Bienvenu
Shareholder Shifts and Dividend Increases: A Look at Cal-Maine Foods Inc.
Cal-Maine Foods Inc, a NASDAQ-traded basic materials firm, has seen movement in its shareholdership over the past few quarters. Hedge funds and institutional investors have been buying up shares, such as Hodges Capital Management Inc. acquiring $3.5 million worth of shares during Q4 2022. Other companies with newly acquired positions include Healthcare of Ontario Pension Plan Trust Fund, whose position was estimated to be around $3.9 million; Quadrature Capital Ltd purchased an additional 1,094 shares during the last quarter while Great West Life Assurance Co bought an extra 4,544 shares after acquiring its initial position in Q3 2022.
In addition to these investments, Nisa Investment Advisors LLC grew its holdings by more than 2,000% from the third quarter of 2022 to the fourth quarter when the firm purchased an additional 87,362 shares for a total of $4.9 million. As at today’s date of May 15th, institutional investors and hedge funds now own close to 89% of Cal-Maine Foods’ stock.
Moving on to analyst reports on Cal-Maine Foods Inc., Stephens recently downgraded the company from “overweight” to “equal weight”. StockNews.com has rated Cal-Maine Foods as a “buy” which suggests good prospects for future growth.
The company’s EVP Charles Jeff Hardin recently sold off some of his stock in March this year despite achieving admirable earnings data for Q1 which beat analysts’ consensus estimate by way of recording $6.62 EPS against a prediction of $5.09 EPS per share.
Finally, shareholders received some welcome news last week when Cal-Maine Foods increased its quarterly dividend payout from $1.35 per share to $2.20 per share. The dividend was paid on May 11th and represented an annualized yield boost from approximately 14% to just over 18%. Overall, Cal-Maine Foods remains poised for growth and is firmly establishing itself as a favorite within the basic materials sector.
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Russell Investments Group Increases Stake in Cal-Maine Foods Despite Uncertain Times for Food Commodities
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