The company's fiscal first-quarter report disappointed
The shares of Cal-Maine Foods Inc (NASDAQ:CALM) are gapping lower today, after the egg distributor posted lower-than-expected earnings and revenue in its fiscal first-quarter report. To follow, Stephens threw in a modest price-target cut to $45 from $47.
At last check, CALM was down 7.7% at $43.85, earlier marking a fresh 52-week low of $42.25. Pressure at the $50 region, as well as the security's descending 150-day moving average, kept a lid on price action over the second half of September. In turn, the equity now sports a 19.2% year-to-date deficit.
Cal-Maine Food stock's typically quiet options pits are naturally seeing much more activity today. So far this morning, 1,201 calls and 2,459 puts have been traded, which is already 16 times the average daily options volume. The October 42.50 put is the most popular contract, where new positions are being opened.
It's also worth noting that short interest represents 12.9% of the stock's available float. It would take roughly five days for shorts to cover their positions, at CALM's average pace of trading.