Solel Partners LP initiated a new position in Cal-Maine Foods (CALM +2.56%), acquiring 181,700 shares in the fourth quarter for an estimated $14.46 million, according to a February 17, 2026, SEC filing.
What happened
Solel Partners LP disclosed a new stake of 181,700 shares in Cal-Maine Foods during the fourth quarter, as detailed in its SEC filing dated February 17, 2026. This addition contributed a $14.46 million increase in quarter-end position value.
What else to know
- This is a new position for Solel Partners LP and accounts for 2.34% of its reportable 13F AUM.
- Top fund holdings after the filing:
- NYSE: UNH: $68.18 million (11.0% of AUM)
- NYSE: SYF: $61.65 million (10.0% of AUM)
- NYSE: CVS: $47.12 million (7.6% of AUM)
- NASDAQ: BRZE: $43.62 million (7.1% of AUM)
- NYSE: BRSL: $43.27 million (7.0% of AUM)
- As of February 17, 2026, CALM shares were priced at $81.23, down 3.0% over the past year and trailing the S&P 500 by 19.12 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $4.21 billion |
| Net Income (TTM) | $1.15 billion |
| Dividend Yield | 9.74% |
| Price (as of market close 2/17/26) | $81.23 |
Company snapshot
- Cal-Maine produces, grades, packages, markets, and distributes shell eggs, including specialty eggs such as cage-free, organic, and nutritionally enhanced varieties under brands like Egg-Land's Best and Land O' Lakes.
- The company operates an integrated business model focused on large-scale egg production and distribution, generating revenue primarily through the sale of shell eggs and specialty egg products.
- It serves national and regional grocery store chains, club stores, independent supermarkets, and foodservice distributors across the southwestern, southeastern, mid-western, and mid-Atlantic United States.
The company’s scale, operational efficiency, and focus on specialty egg products position it as a key supplier to major retail and foodservice customers. Its strategy emphasizes product diversity and broad market reach to maintain a competitive edge in the consumer defensive sector.
What this transaction means for investors
Staples exposure changes the risk profile of a portfolio heavy on healthcare and fintech. With top holdings in UnitedHealth, Synchrony, CVS and Braze, adding a scaled food producer introduces a different earnings driver that is less tied to credit cycles or software multiples.
Cal-Maine’s latest quarter shows why that matters. Second quarter net sales were $769.5 million, down 19.4% as egg prices normalized, and diluted EPS fell to $2.13, down a steep 52.3%. Yet the business still generated $102.8 million in quarterly net income (though it was down 53%) and nearly $95 million in operating cash flow.
More importantly, the mix is shifting. Specialty eggs accounted for 44% of shell egg sales in the quarter, and prepared foods sales surged to $71.7 million. Management is investing $36 million to expand prepared foods capacity by over 30% in the next two years. Long-term investors should watch that evolution closely. Commodity swings will persist, but a higher value mix could make earnings less volatile over time.
