Why Cal-Maine Foods Stock Cracked Today
Eggs may be expensive, but this egg stock is going on sale.
Shares of Cal-Maine Foods (NASDAQ: CALM), America's biggest egg producer, dropped 3% through 11:10 a.m. ET this morning -- for reasons that had nothing to do with inflation or the rising price of eggs.
Rather, Cal-Maine stock tumbled because a handful of its biggest shareholders are selling the stock, and Cal-Maine itself is buying back some of that stock at a discount.
Let's start with the selling. Cal-Maine announced this morning that "the four daughters of the Company's late founder, Fred R. Adams, Jr.," as well as his son-in-law, plan to sell just under 3 million shares of Cal-Maine, worth just under $280 million in total at today's prices. These five inside shareholders will sell at a discount, however, charging only $92.75 for their shares.
