River Road Loads Up On Cal-Maine Foods With 1.37 Million Shares in Q1

On April 30, 2026, River Road Asset Management, LLC disclosed a new position in Cal-Maine Foods (NASDAQ:CALM).

What happened

According to a Securities and Exchange Commission (SEC) filing dated April 30, 2026, River Road Asset Management, LLC established a new stake in Cal-Maine Foods by adding 1,369,522 shares. The estimated transaction value is $112.50 million, calculated using the average closing price during the first quarter. As of March 31, the quarter-end position was valued at $108.40 million, reflecting both share purchases and market price changes.

What else to know

• This was a new position, representing 1.23% of River Road’s 13F reportable assets under management as of March 31, 2026.
• Top holdings after the filing:
  • NYSE: BJ: $344.81 million (3.9% of AUM)
  • NYSE: WTM: $264.78 million (3.0% of AUM)
  • NASDAQ: MGRC: $238.30 million (2.7% of AUM)
  • NYSE: BRK-B: $218.25 million (2.5% of AUM)
  • NYSE: MUSA: $195.51 million (2.2% of AUM)
• As of April 29, 2026, shares of Cal-Maine Foods were priced at $75.07, down 15.4% over the past year, underperforming the S&P 500 by 43.68 percentage points.

Company Overview

Metric	Value
Revenue (TTM)	$3.46 billion
Net Income (TTM)	$695.03 million
Dividend Yield	6.28%
Price (as of market close 2026-04-29)	$75.07

Company Snapshot

• Produces, grades, packages, markets, and distributes shell eggs, including specialty varieties such as cage free, organic, and nutritionally enhanced eggs under brands like Egg-Land's Best and Land O' Lakes.
• Operates an integrated supply chain model, generating revenue primarily through the sale of shell eggs to retail and foodservice channels.
• Serves national and regional grocery chains, club stores, independent supermarkets, and foodservice distributors across the southwestern, southeastern, mid-western, and mid-Atlantic United States.

Cal-Maine Foods, Inc., together with its subsidiaries, produces, grades, packages, markets, and distributes shell eggs, including specialty varieties under brands like Egg-Land's Best and Land O' Lakes. Cal-Maine Foods, Inc. offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Land's Best, Land O' Lakes, Farmhouse Eggs, and 4-Grain brand names, as well as under private labels. Cal-Maine Foods, Inc. sells its products to various customers, including national and regional grocery store chains, club stores, independent supermarkets, and foodservice distributors primarily in the southwestern, southeastern, mid-western, and mid-Atlantic regions of the United States.

What this transaction means for investors

Although investors are often reduced to speculation when one sells, purchases are different. Thus, River Road’s $112.5 million investment in Cal-Maine Foods is a clear signal of optimism in this consumer staples stock.

During the quarter, the stock’s price has fallen to its lowest level since 2024. This comes as the company faces a DOJ investigation regarding egg prices. Also, net income fell significantly as high margins came down as supply and demand came into better balance.

Today, egg prices have come down from the peaks in early 2025. Nonetheless, the world could face higher food prices as the conflict in Iran has led to lower fertilizer supplies. While not good for the consumer, that could increase the profitability of the company if food prices rise.

Additionally, its P/E ratio stands at just 5. While Cal-Maine is unlikely to command high multiples, this ultra-low P/E ratio increases the chances that River Road can win by owning more of this stock.TMF Writers add your take here...

Will Healy has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway and Cal-Maine Foods. The Motley Fool recommends McGrath RentCorp and Murphy USA. The Motley Fool has a disclosure policy.