Cavco Industries (NASDAQ:CVCO) Shares Gap Up on Earnings Beat

Cavco Industries, Inc. (NASDAQ:CVCO) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $547.25, but opened at $613.77. Cavco Industries shares last traded at $619.58, with a volume of 44,051 shares trading hands.

The construction company reported $7.17 earnings per share for the quarter, beating the consensus estimate of $5.52 by $1.65. The business had revenue of $656.38 million for the quarter, compared to analysts’ expectations of $613.12 million. Cavco Industries had a return on equity of 16.51% and a net margin of 7.89%.

Key Stories Impacting Cavco Industries

Here are the key news stories impacting Cavco Industries this week:

• Positive Sentiment: Significant earnings and revenue beat: Cavco reported quarterly EPS of $7.17, well above the $5.52 analyst consensus, while revenue reached $656.4 million versus expectations of $613.1 million. Revenue increased 17.9% year over year, driven by higher home sales volume and average selling prices. Cavco Industries Reports Fiscal 2027 Second Quarter Results
• Positive Sentiment: Constructive analyst outlook: Northland Securities initiated coverage with an “Outperform” rating and a $650 price target. The firm forecasts EPS of $22.49 for fiscal 2027 and $27.71 for fiscal 2028, indicating expectations for continued earnings growth. Northland Securities Initiates Coverage on Cavco Industries
• Positive Sentiment: Analyst consensus remains favorable: Sell-side analysts rate Cavco Industries a “Moderate Buy,” while the current-year consensus EPS estimate is $22.66. Reports also cited rising backlogs and operating scale as support for the company’s longer-term growth prospects. Cavco Industries Stock Rated Moderate Buy by Sell-Side Analysts
• Neutral Sentiment: Northland’s quarterly forecasts call for EPS of $5.52 in fiscal Q2 2027, $5.86 in Q3 and $5.68 in Q4. These estimates reinforce expectations for sustained profitability, although another analyst, Craig Hallum, previously projected lower quarterly EPS of $5.21.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on CVCO. Weiss Ratings raised shares of Cavco Industries from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, September 29th. Zacks Research raised Cavco Industries from a “strong sell” rating to a “hold” rating in a research note on Tuesday, September 29th. Northland Securities initiated coverage on Cavco Industries in a research report on Wednesday. They issued an “outperform” rating and a $650.00 price target for the company. Zelman & Associates cut shares of Cavco Industries from an “outperform” rating to a “neutral” rating in a report on Thursday, August 6th. Finally, Oppenheimer began coverage on shares of Cavco Industries in a report on Wednesday, September 30th. They issued an “outperform” rating and a $720.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $690.00.

Insider Buying and Selling at Cavco Industries

In related news, CAO Paul Bigbee sold 342 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $592.00, for a total value of $202,464.00. Following the transaction, the chief accounting officer owned 736 shares of the company’s stock, valued at approximately $435,712. This trade represents a 31.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 1.70% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Cavco Industries during the second quarter valued at approximately $767,112,000. Jupiter Topco LLC bought a new stake in shares of Cavco Industries during the 2nd quarter valued at $42,954,000. Neumeier Poma Investment Counsel LLC bought a new stake in shares of Cavco Industries during the 2nd quarter valued at $42,826,587. Bessemer Group Inc. raised its position in shares of Cavco Industries by 3.5% during the 1st quarter. Bessemer Group Inc. now owns 59,878 shares of the construction company’s stock valued at $28,998,000 after purchasing an additional 2,008 shares during the period. Finally, Punch & Associates Investment Management Inc. purchased a new position in shares of Cavco Industries during the 2nd quarter valued at $33,133,000. 95.56% of the stock is owned by hedge funds and other institutional investors.

Cavco Industries Trading Up 13.4%

The business’s 50 day moving average is $548.27 and its two-hundred day moving average is $552.38. The company has a market cap of $4.77 billion, a PE ratio of 27.01 and a beta of 1.27.

About Cavco Industries

Cavco Industries, Inc is a manufacturer of factory-built housing and related products. The company designs and produces manufactured homes, modular homes, park model recreational vehicles, and commercial structures for residential, hospitality, and other applications. Its homes are sold through independent retailers, company-owned retail locations, and a network of housing dealers.

Cavco markets its products under several brands, including Cavco, Fleetwood Homes, Palm Harbor Homes, Nationwide Homes, Solitaire Homes, and CountryPlace.