Cavco Industries, Inc. (NASDAQ:CVCO) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts rate Cavco a "Moderate Buy" — five brokerages give a consensus of Moderate Buy (three holds, one buy, one strong buy) with an average 12‑month target of $550.
• Cavco missed its most recent quarter, reporting $5.58 EPS versus a $6.00 estimate and $580.99M revenue versus a $593.37M estimate, while the stock trades near $540 with a market cap of about $4.19B and a P/E of 23.46.
• Insiders have been buying shares recently — CEO William Boor purchased 1,000 shares at $495 and a director bought 300 shares — and institutional investors own roughly 95.56% of the stock.

Shares of Cavco Industries, Inc. (NASDAQ:CVCO - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the five brokerages that are presently covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a hold recommendation, one has issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $550.00.

CVCO has been the topic of several recent research reports. Weiss Ratings lowered Cavco Industries from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, February 26th. Zelman & Associates raised Cavco Industries to an "outperform" rating in a research report on Thursday, February 5th. Finally, Zacks Research raised Cavco Industries from a "strong sell" rating to a "hold" rating in a research report on Friday, April 3rd.

Cavco Industries Price Performance

NASDAQ CVCO opened at $539.94 on Tuesday. Cavco Industries has a fifty-two week low of $393.53 and a fifty-two week high of $713.01. The stock's 50-day moving average is $526.50 and its two-hundred day moving average is $562.51. The firm has a market cap of $4.19 billion, a P/E ratio of 23.46 and a beta of 1.33.

Cavco Industries (NASDAQ:CVCO - Get Free Report) last posted its earnings results on Thursday, January 29th. 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 8.37% and a return on equity of 17.84%. The company had revenue of $580.99 million for the quarter, compared to the consensus estimate of $593.37 million. On average, equities analysts expect that Cavco Industries will post 23.86 EPS for the current year.

Insider Activity

In other Cavco Industries news, CEO William C. Boor purchased 1,000 shares of the stock in a transaction dated Wednesday, February 4th. The shares were bought at an average cost of $495.00 per share, with a total value of $495,000.00. Following the completion of the transaction, the chief executive officer owned 48,022 shares in the company, valued at $23,770,890. This trade represents a 2.13% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Steven W. Moster purchased 300 shares of the stock in a transaction dated Monday, February 2nd. The stock was acquired at an average cost of $456.23 per share, for a total transaction of $136,869.00. Following the completion of the transaction, the director owned 2,976 shares of the company's stock, valued at $1,357,740.48. The trade was a 11.21% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders have acquired 1,800 shares of company stock valued at $866,592. 1.60% of the stock is owned by insiders.

Institutional Investors Weigh In On Cavco Industries

Hedge funds and other institutional investors have recently made changes to their positions in the business. Salomon & Ludwin LLC acquired a new stake in shares of Cavco Industries in the third quarter valued at about $31,000. Aster Capital Management DIFC Ltd acquired a new stake in Cavco Industries during the fourth quarter worth about $46,000. Kemnay Advisory Services Inc. acquired a new stake in Cavco Industries during the fourth quarter worth about $50,000. Los Angeles Capital Management LLC bought a new position in Cavco Industries during the fourth quarter valued at about $54,000. Finally, Danske Bank A S acquired a new position in Cavco Industries in the 3rd quarter valued at approximately $58,000. 95.56% of the stock is owned by institutional investors and hedge funds.

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.

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