Cavco Industries (NASDAQ:CVCO) Coverage Initiated by Analysts at UBS Group

Key Points

• UBS Group initiated coverage on Cavco Industries with a buy rating and a $700 price target, implying about 27% upside from the stock’s current level.
• Cavco’s latest earnings beat expectations on EPS, reporting $5.42 per share versus the $5.30 consensus, though revenue came in below estimates at $550.13 million.
• Analyst sentiment is generally constructive, with the stock carrying an overall Moderate Buy rating, while recent insider sales and heavy institutional ownership were also noted.

Analysts at UBS Group began coverage on shares of Cavco Industries (NASDAQ:CVCO - Get Free Report) in a research report issued to clients and investors on Friday, Marketbeat.com reports. The firm set a "buy" rating and a $700.00 price target on the construction company's stock. UBS Group's target price points to a potential upside of 27.21% from the stock's current price.

A number of other equities analysts have also recently issued reports on the company. Weiss Ratings restated a "hold (c+)" rating on shares of Cavco Industries in a report on Tuesday, May 26th. Zacks Research upgraded Cavco Industries from a "strong sell" rating to a "hold" rating in a report on Friday, April 3rd. Finally, Zelman & Associates upgraded Cavco Industries to an "outperform" rating in a report on Thursday, February 5th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, Cavco Industries presently has an average rating of "Moderate Buy" and an average target price of $625.00.

Cavco Industries Stock Performance

NASDAQ:CVCO opened at $550.29 on Friday. The company has a market capitalization of $4.23 billion, a PE ratio of 22.96 and a beta of 1.30. The company has a 50 day simple moving average of $504.39 and a two-hundred day simple moving average of $554.46. Cavco Industries has a fifty-two week low of $393.53 and a fifty-two week high of $713.01.

Cavco Industries (NASDAQ:CVCO - Get Free Report) last released its earnings results on Thursday, May 21st. The construction company reported $5.42 earnings per share for the quarter, beating analysts' consensus estimates of $5.30 by $0.12. The business had revenue of $550.13 million during the quarter, compared to the consensus estimate of $571.06 million. Cavco Industries had a net margin of 8.49% and a return on equity of 17.55%. Research analysts predict that Cavco Industries will post 25 EPS for the current year.

Insider Buying and Selling

In other Cavco Industries news, CAO Paul Bigbee sold 200 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $537.75, for a total transaction of $107,550.00. Following the transaction, the chief accounting officer directly owned 1,105 shares in the company, valued at approximately $594,213.75. This represents a 15.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Allison Aden sold 129 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $455.76, for a total value of $58,793.04. Following the transaction, the executive vice president owned 8,806 shares in the company, valued at $4,013,422.56. The trade was a 1.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 360 shares of company stock worth $182,127 over the last 90 days. Company insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Cavco Industries

A number of large investors have recently modified their holdings of the company. Segall Bryant & Hamill LLC lifted its holdings in shares of Cavco Industries by 29.2% in the 1st quarter. Segall Bryant & Hamill LLC now owns 36,573 shares of the construction company's stock worth $17,712,000 after purchasing an additional 8,264 shares in the last quarter. Bank of America Corp DE lifted its holdings in shares of Cavco Industries by 7.1% in the 1st quarter. Bank of America Corp DE now owns 27,353 shares of the construction company's stock worth $13,247,000 after purchasing an additional 1,824 shares in the last quarter. Amundi lifted its holdings in shares of Cavco Industries by 33.2% in the 1st quarter. Amundi now owns 1,609 shares of the construction company's stock worth $779,000 after purchasing an additional 401 shares in the last quarter. California State Teachers Retirement System lifted its holdings in shares of Cavco Industries by 24.1% in the 1st quarter. California State Teachers Retirement System now owns 9,319 shares of the construction company's stock worth $4,513,000 after purchasing an additional 1,808 shares in the last quarter. Finally, Empowered Funds LLC lifted its holdings in shares of Cavco Industries by 73.7% in the 1st quarter. Empowered Funds LLC now owns 966 shares of the construction company's stock worth $468,000 after purchasing an additional 410 shares in the last quarter. 95.56% of the stock is currently owned by institutional investors.

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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