Core Viewpoint - Wolf Haldenstein Adler Freeman & Herz LLP is investigating potential claims on behalf of investors of Cal-Maine Foods Inc. following a civil investigative demand from the Department of Justice regarding possible Antitrust Law violations [1]. Group 1 - The investigation was initiated after Cal-Maine Foods submitted a Form 10-Q to the SEC on April 8, 2025, which disclosed the DOJ's investigation [1]. - The potential violations of Antitrust Laws could have significant adverse effects on investor interests [1]. Group 2 - Wolf Haldenstein is committed to protecting shareholder interests and pursuing corporate accountability and transparency [2]. - The firm has a long history, founded in 1888, and aims to seek justice for investors who have suffered financial harm due to misrepresented statements [2].

Core Insights - Cal-Maine Foods, Inc. (CALM) has experienced improved financial results and share price gains due to elevated egg prices and strong sales volumes, despite a recent decline in egg prices as reported by the Consumer Price Index [1][2][3] Industry Overview - The highly pathogenic avian influenza (HPAI) has significantly impacted U.S. poultry farms, leading to the depopulation of 40.2 million birds in 2024 and an additional 32.9 million in 2025, creating a supply crunch that drove egg prices to record highs [2][3] - The U.S. Department of Agriculture (USDA) has implemented a $1 billion strategy to combat HPAI and stabilize egg prices, with recent reports indicating fewer outbreaks at commercial poultry operations [3][4] Company Performance - Cal-Maine Foods reported earnings per share of $10.38 for the third quarter of fiscal 2025, a substantial increase from $3.00 in the same quarter the previous year, with sales rising 102% year over year to $1.42 billion [9] - The net average selling price of shell eggs has increased, and total dozens sold have also risen, contributing to the company's strong financial performance [5][9] Stock Performance - CALM's stock has surged 62.5% over the past year, outperforming the industry, which saw a decline of 10.8%, and the Basic Materials sector, which dropped 10.2% [10][13] - The stock is currently trading above its 50-day and 200-day moving averages, indicating strong upward momentum and positive market sentiment [15] Valuation Metrics - Cal-Maine Foods is trading at a forward 12-month P/E ratio of 14.45X, compared to the industry average of 10.27X, suggesting a premium valuation [19] - The company's return on equity (ROE) stands at 48.72%, significantly higher than the industry average of 11.98% and the S&P 500's 31.94% [22][25] Analyst Sentiment - The Zacks Consensus Estimate for Cal-Maine's earnings has increased by 45.80% for 2025 and 21.75% for 2026 over the past 60 days, reflecting positive analyst sentiment [26] Strategic Initiatives - Cal-Maine Foods is investing in expanding its cage-free egg production capacity, with plans to complete $60 million in capital projects by the end of the year, adding capacity for 1.1 million cage-free layer hens [28] - Recent acquisitions, including ISE America's assets and Deal-Rite Feeds, are expected to enhance production capacity and lower costs [29][30] - The company is diversifying its product offerings by investing in value-added egg products, including agreements to acquire Echo Lake Foods, which will allow entry into the ready-to-eat egg products market [31][32]

Group 1 - GeneDx Holdings Corp. has seen a 12.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - NatWest Group plc has experienced a 5.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Herbalife Nutrition Ltd. has recorded a 9.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Cal-Maine Foods, Inc. has seen a significant 46.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Euroseas Ltd. has experienced an 8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Group 1: Herbalife Nutrition Ltd. (HLF) - Herbalife Nutrition has a Zacks Rank of 1 and a 9.8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 3.83, compared to the industry average of 5.20 [1] - Herbalife possesses a Value Score of A [1] Group 2: Cal-Maine Foods, Inc. (CALM) - Cal-Maine Foods also carries a Zacks Rank of 1, with a significant 46.2% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - The company has a P/E ratio of 4.08, lower than the industry average of 5.50 [2] - Cal-Maine holds a Value Score of A [2] Group 3: Euroseas Ltd. (ESEA) - Euroseas has a Zacks Rank of 1 and an 8% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - The company’s P/E ratio stands at 2.24, significantly lower than the industry average of 6.20 [3] - Euroseas also possesses a Value Score of A [3]

Core Insights - The article emphasizes the importance of identifying underappreciated companies that can provide value to investors through a contrarian investment philosophy [1]. Group 1: Author's Background - The author has 20 years of experience in foreign policy research and over 25 years in investment analysis, focusing on deep-discount value plays [1]. - The author began analyzing securities during college and has contributed to various reputable publications, including Forbes and Seeking Alpha [1]. Group 2: Investment Philosophy - The investment approach is centered around finding micro-cap stocks that are undervalued, with a focus on returning value to investors [1]. - The author has been influenced by the contrarian investment philosophy of David Dreman, which prioritizes value over momentum investing [1].

Core Viewpoint - Cal-Maine Foods' stock price dropped due to major shareholders selling shares and the company buying back some at a discount, but this is ultimately positive for shareholders. Group 1: Selling of Shares - The four daughters of the late founder Fred R. Adams, Jr., along with his son-in-law, plan to sell just under 3 million shares, valued at nearly $280 million at current prices, at a discount of $92.75 per share [2]. Group 2: Buying of Shares - Cal-Maine will purchase 551,876 shares from the insiders for $50 million, utilizing funds from its existing $500 million stock buyback program [3]. Group 3: Implications for Shareholders - The share buyback reduces the number of shares outstanding, concentrating earnings among fewer shares, which is beneficial for shareholders [4]. - The conversion of Class A stock to ordinary common stock eliminates supermajority voting rights, reducing insider control over the company [5]. - Buying back shares at a discount is advantageous for Cal-Maine, akin to purchasing eggs on sale [5].

Core Viewpoint - Cal-Maine Foods (CALM) is showing potential for investment due to its recent technical breakout and positive earnings revisions [1][2][3] Technical Analysis - CALM has recently broken above the 50-day moving average, indicating a short-term bullish trend [1] - The stock has increased by 17.1% over the past four weeks, suggesting upward momentum [2] Earnings Estimates - There has been one upward revision in earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment [3] - The consensus earnings estimate has also increased, further supporting the bullish outlook for CALM [3] Investment Rating - CALM is currently rated as a Zacks Rank 1 (Strong Buy), suggesting strong potential for continued price appreciation [2]

Group 1 - Cal-Maine Foods (CALM) has surpassed resistance at the 20-day moving average, indicating a potential short-term bullish trend [1][4] - The stock has moved 7.1% higher over the last four weeks, suggesting a possible upcoming rally [4] - CALM is currently rated as a Zacks Rank 1 (Strong Buy), supported by positive earnings estimate revisions [4][5] Group 2 - The 20-day simple moving average is a popular trading tool that helps smooth out short-term price trends and signals trend reversals [2] - A stock price above the 20-day moving average indicates a positive trend, while a price below suggests a downward trend [2]

Core Insights - Cal-Maine Foods, the largest egg producer in the U.S., reported earnings below expectations while announcing an acquisition of Echo Lake Foods, a breakfast food manufacturer [1][2][3] - The company's fiscal third quarter earnings were $10.38 per share, significantly up from $3 per share a year ago but below the anticipated $10.90 per share [2] - Quarterly sales reached $1.42 billion, a 102% increase year-over-year, yet fell short of expectations by $10 million [3] Financial Performance - The company experienced a volatile trading day, with shares initially falling 8%, then rising as much as 6%, and closing up about 3% [1] - Over the past year, Cal-Maine shares have increased by 48%, although they are down 20% from their peak [4] - The company offers a 4.6% dividend yield and has announced a $500 million share repurchase agreement, making it an attractive option for investors seeking growth and income [5] Acquisition Details - Cal-Maine announced plans to acquire Echo Lake Foods for $258 million, which generated sales of $240 million in 2024 [3] - CEO Sherman Miller highlighted the company's ability to maximize production during high demand while maintaining biosecurity measures [3]

Core Viewpoint Cal-Maine Foods, Inc. (CALM) has reported significant financial improvements in the third quarter of fiscal 2025, driven by high demand and elevated egg prices, despite challenges posed by avian influenza outbreaks affecting supply. Financial Performance - Earnings per share (EPS) reached $10.38, a substantial increase from $3.00 in the same quarter last year [1] - Total sales surged to $1.42 billion, reflecting a 102% year-over-year increase due to higher net average selling prices and increased volumes sold [3] - Gross profit was approximately $716 million, marking a 228% increase from the previous year, with a gross margin of 50.5%, up from 31.1% [7] Pricing and Sales Volume - The net average selling price per dozen eggs was $4.06, an 80.7% increase year-over-year, with conventional eggs seeing a 121.5% rise to $4.766 per dozen [4] - Cal-Maine sold a record 331.4 million dozen shell eggs, a 10% increase from the previous year, with conventional egg sales up 11% and specialty egg sales up 9% [5] Cost and Margin Analysis - Farm production costs per dozen decreased by 5.7% year-over-year, while feed costs per dozen fell by 9.6% [6] - Operating profit was reported at $636 million, compared to $163 million in the prior year, with an operating margin of 44.8% [8] Cash Position and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $1.24 billion, up from $812 million at the end of fiscal 2024 [9] - A $500 million share repurchase program was approved, and a cash dividend of $3.46 per share was declared [9][10] Industry Challenges - Ongoing outbreaks of highly pathogenic avian influenza (HPAI) have led to significant depopulation of commercial laying hens, impacting overall supply [12] - The USDA reported the table-egg layer flock at approximately 285 million as of March 1, 2025, the lowest level since September 2015 [12] Growth Initiatives - Cal-Maine is investing $60 million in capital projects to expand cage-free capacity, including the addition of new layer houses [14] - The company is acquiring Echo Lake Foods for $258 million, which is expected to enhance its presence in the value-added food segment [16][17] Stock Performance - Cal-Maine shares have increased by 44.7% over the past year, contrasting with a 19.8% decline in the industry [18]