Cavco Industries (NASDAQ:CVCO) Shares Gap Down After Earnings Miss

Cavco Industries, Inc. (NASDAQ:CVCO)’s stock price gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $617.50, but opened at $548.60. Cavco Industries shares last traded at $522.70, with a volume of 64,144 shares trading hands.

The construction company reported $5.58 earnings per share for the quarter, missing the consensus estimate of $6.00 by ($0.42). Cavco Industries had a net margin of 9.18% and a return on equity of 19.13%. The firm had revenue of $580.99 million during the quarter, compared to analyst estimates of $593.37 million.

Analysts Set New Price Targets

A number of analysts have weighed in on CVCO shares. CJS Securities upgraded Cavco Industries to a “strong-buy” rating in a research note on Thursday, December 11th. Zacks Research cut Cavco Industries from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 16th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Cavco Industries in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $550.00.

Insider Activity

In other news, Director Richard A. Kerley sold 500 shares of Cavco Industries stock in a transaction on Friday, November 7th. The shares were sold at an average price of $568.99, for a total value of $284,495.00. Following the transaction, the director directly owned 6,669 shares of the company’s stock, valued at $3,794,594.31. The trade was a 6.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. State Street Corp boosted its stake in shares of Cavco Industries by 6.1% during the second quarter. State Street Corp now owns 380,682 shares of the construction company’s stock worth $165,380,000 after buying an additional 21,837 shares during the period. Boston Partners grew its stake in shares of Cavco Industries by 82.8% in the 3rd quarter. Boston Partners now owns 369,177 shares of the construction company’s stock valued at $213,866,000 after purchasing an additional 167,230 shares during the last quarter. Ameriprise Financial Inc. increased its holdings in shares of Cavco Industries by 0.7% in the third quarter. Ameriprise Financial Inc. now owns 147,036 shares of the construction company’s stock valued at $85,388,000 after purchasing an additional 963 shares during the period. Schroder Investment Management Group raised its stake in shares of Cavco Industries by 76.9% during the second quarter. Schroder Investment Management Group now owns 130,106 shares of the construction company’s stock worth $56,522,000 after purchasing an additional 56,578 shares during the last quarter. Finally, Handelsbanken Fonder AB lifted its holdings in shares of Cavco Industries by 6.8% during the third quarter. Handelsbanken Fonder AB now owns 81,786 shares of the construction company’s stock worth $47,496,000 after purchasing an additional 5,200 shares during the period. 95.56% of the stock is currently owned by institutional investors and hedge funds.

Cavco Industries Stock Performance

The stock has a market capitalization of $4.12 billion, a PE ratio of 21.57 and a beta of 1.31. The business’s 50-day moving average is $618.04 and its two-hundred day moving average is $551.27.

About Cavco Industries

Cavco Industries, Inc is a leading designer, manufacturer and retailer of factory-built homes and modular structures. The company produces a range of HUD-code manufactured homes, modular buildings, park model RVs and cabins through its network of production facilities. Its offerings cater to both residential and commercial markets, including customizable single- and multi-section homes, workforce and affordable housing solutions, educational and healthcare modules, as well as specialty lodging products for the recreational vehicle and hospitality industries.

Since its founding in 1967, Cavco has grown through strategic investments and acquisitions, expanding its footprint across the United States and into parts of Canada and Mexico.