Cavco Industries (NASDAQ:CVCO) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Cavco Industries from “hold” to “strong sell,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $700.
• Cavco’s latest quarterly results were mixed: adjusted EPS of $5.43 missed estimates of $5.69, while revenue of $609.96 million exceeded the $590.54 million consensus.
• Insiders sold 3,571 shares worth approximately $2.14 million over the past 90 days, while institutional investors continue to hold a substantial 95.56% of the company’s outstanding shares.

Cavco Industries (NASDAQ:CVCO - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other research analysts have also weighed in on the stock. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Cavco Industries in a research note on Tuesday, May 26th. UBS Group began coverage on shares of Cavco Industries in a research report on Friday, June 5th. They set a "buy" rating and a $700.00 target price for the company. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $700.00.

Cavco Industries Trading Up 3.8%

Shares of CVCO opened at $566.56 on Monday. The firm's fifty day simple moving average is $575.21 and its two-hundred day simple moving average is $549.07. Cavco Industries has a 12 month low of $439.29 and a 12 month high of $713.01. The stock has a market capitalization of $4.37 billion, a P/E ratio of 24.65 and a beta of 1.29.

Cavco Industries (NASDAQ:CVCO - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The construction company reported $5.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $5.69 by ($0.26). Cavco Industries had a net margin of 7.89% and a return on equity of 16.51%. The business had revenue of $609.96 million during the quarter, compared to analyst estimates of $590.54 million. As a group, research analysts predict that Cavco Industries will post 22.75 EPS for the current fiscal year.

Insider Buying and Selling at Cavco Industries

In other Cavco Industries news, Director Richard A. Kerley sold 500 shares of Cavco Industries stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $588.76, for a total transaction of $294,380.00. Following the transaction, the director owned 6,169 shares of the company's stock, valued at $3,632,060.44. This trade represents a 7.50% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Allison Aden sold 1,473 shares of Cavco Industries stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $625.00, for a total transaction of $920,625.00. Following the transaction, the executive vice president directly owned 9,147 shares in the company, valued at approximately $5,716,875. This represents a 13.87% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 3,571 shares of company stock worth $2,139,031. Insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Aster Capital Management DIFC Ltd bought a new stake in shares of Cavco Industries during the 4th quarter worth $46,000. Kemnay Advisory Services Inc. purchased a new stake in Cavco Industries during the fourth quarter worth about $50,000. Los Angeles Capital Management LLC bought a new stake in Cavco Industries in the fourth quarter worth about $54,000. Osaic Holdings Inc. boosted its stake in Cavco Industries by 118.2% in the second quarter. Osaic Holdings Inc. now owns 120 shares of the construction company's stock valued at $57,000 after acquiring an additional 65 shares during the last quarter. Finally, Danske Bank A S bought a new position in shares of Cavco Industries during the 3rd quarter valued at approximately $58,000. Hedge funds and other institutional investors own 95.56% of the company's stock.

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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