Cavco Industries (NASDAQ:CVCO) Shares Gap Up After Strong Earnings

Key Points

• Cavco Industries shares opened at $429.70 after reporting better-than-expected quarterly earnings of $6.42 EPS, surpassing analysts' estimates of $5.81.
• The company's revenue for the quarter was $556.86 million, exceeding the consensus estimate of $524.97 million, with a net margin of 8.49%.
• Institutional investors own 95.56% of Cavco Industries' stock, with significant increases in holdings from several hedge funds in recent quarters.

Shares of Cavco Industries, Inc. (NASDAQ:CVCO - Get Free Report) gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $403.67, but opened at $429.70. Cavco Industries shares last traded at $420.41, with a volume of 12,210 shares changing hands.

The construction company reported $6.42 earnings per share for the quarter, topping the consensus estimate of $5.81 by $0.61. Cavco Industries had a net margin of 8.99% and a return on equity of 18.52%. The business had revenue of $556.86 million during the quarter, compared to the consensus estimate of $524.97 million.

Analyst Ratings Changes

CVCO has been the topic of several analyst reports. Wall Street Zen lowered Cavco Industries from a "buy" rating to a "hold" rating in a research note on Saturday, July 5th. Wedbush reissued a "neutral" rating and set a $550.00 price target on shares of Cavco Industries in a report on Monday.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of CVCO. Farther Finance Advisors LLC lifted its holdings in shares of Cavco Industries by 151.4% during the 2nd quarter. Farther Finance Advisors LLC now owns 88 shares of the construction company's stock valued at $38,000 after buying an additional 53 shares during the period. CWM LLC boosted its position in shares of Cavco Industries by 44.0% during the first quarter. CWM LLC now owns 157 shares of the construction company's stock valued at $82,000 after buying an additional 48 shares during the period. Northwestern Mutual Wealth Management Co. raised its stake in shares of Cavco Industries by 2,850.0% during the first quarter. Northwestern Mutual Wealth Management Co. now owns 177 shares of the construction company's stock valued at $92,000 after acquiring an additional 171 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new position in Cavco Industries in the first quarter worth approximately $112,000. Finally, ST Germain D J Co. Inc. acquired a new position in shares of Cavco Industries during the second quarter worth $156,000. Hedge funds and other institutional investors own 95.56% of the company's stock.

Cavco Industries Stock Up 1.5%

The business has a 50-day moving average price of $427.65 and a 200-day moving average price of $478.42. The firm has a market capitalization of $3.62 billion, a price-to-earnings ratio of 19.37 and a beta of 1.15.

Cavco Industries Company Profile

Cavco Industries, Inc designs, produces, and retails factory-built homes primarily in the United States. It operates in two segments, Factory-Built Housing and Financial Services. The company markets its factory-built homes under the Cavco, Fleetwood, Palm Harbor, Nationwide, Fairmont, Friendship, Chariot Eagle, Destiny, Commodore, Colony, Pennwest, R-Anell, Manorwood, MidCountry, and Solitaire brands.