Short Sellers Target Cal-Maine Stock (CALM) as Egg Prices Fall and Insiders Dump Shares

A growing number of short sellers are targeting the stock of Cal-Maine Foods (CALM), the largest U.S. egg producer.

Currently, 17% of Cal-Maine’s shares are sold short, which means that short sellers are betting that the price will decline in the near-term. That short interest is up from around 10% at the start of the year and comes as the price of eggs drops sharply from record highs.

Currently, the price of a dozen eggs in America is right around $3. That’s down from an all-time high of $8.17 reached in March of this year, but still high by historic measures. The record high egg prices have been a boon to Cal-Maine’s stock, which is up nearly 60% in the last 12 months.

Family Sales

With egg prices falling over the past two months, short sellers have ramped up their bets that CALM stock will also decline. In the last month, Cal-Maine’s share price is flat (up 0.89%). Based in Jackson, Mississippi, Cal-Maine is the largest egg producer in the U.S. In 2024, the company’s 40 million egg-laying hens produced more than 13 billion eggs for sale in America and abroad.

The drop in egg prices coincides with news that Cal-Maine insiders are offloading a large chunk of company stock. The four daughters of company founder Fred Adams, Jr. have filed to sell three million shares of CALM stock worth nearly $290 million at current prices. News of the big stock sale has further undermined investor confidence in Cal-Maine, say analysts.

CALM stock offers a big dividend that yields 7.07%. Shareholders of record receive a quarterly distribution from the company of $1.69 per share. The share price has declined 2% this year.

Is CALM Stock a Buy?

The stock of Cal-Maine has a consensus Hold rating based on two Wall Street analysts. That rating is based on two Hold recommendations assigned in the last three months. The average CALM price target of $98.50 implies 2.34% upside from current levels.

Read more analyst ratings on CALM stock