BlackRock Inc. Invests $767.11 Million in Cavco Industries, Inc. $CVCO

Key Points

• BlackRock acquired 1.25 million shares of Cavco Industries worth approximately $767.1 million, giving it a 16.24% stake. Institutional investors collectively own 95.56% of the company.
• Cavco’s latest quarterly results were mixed: revenue of $609.96 million exceeded estimates, but earnings per share of $5.43 fell short of the $5.69 consensus forecast. Analysts expect full-year EPS of $22.75.
• Analyst sentiment is mixed, with Cavco carrying a consensus “Hold” rating and a $700 target price. Meanwhile, company insiders sold 3,753 shares worth about $2.27 million during the latest quarter.

BlackRock Inc. bought a new position in Cavco Industries, Inc. (NASDAQ:CVCO - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 1,248,595 shares of the construction company's stock, valued at approximately $767,112,000. BlackRock Inc. owned approximately 16.24% of Cavco Industries at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in CVCO. Deutsche Bank AG bought a new position in Cavco Industries during the second quarter valued at approximately $8,525,000. Crown Advisors Management Inc. bought a new stake in Cavco Industries in the 2nd quarter worth approximately $3,072,000. Persistent Asset Partners Ltd bought a new stake in Cavco Industries in the 2nd quarter worth approximately $52,000. OneDigital Investment Advisors LLC purchased a new stake in shares of Cavco Industries during the 2nd quarter worth approximately $383,000. Finally, Global Retirement Partners LLC purchased a new stake in shares of Cavco Industries during the 2nd quarter worth approximately $28,000. 95.56% of the stock is owned by institutional investors.

Insider Buying and Selling at Cavco Industries

In other news, Director Richard A. Kerley sold 500 shares of the stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $588.76, for a total value of $294,380.00. Following the sale, the director owned 6,169 shares of the company's stock, valued at approximately $3,632,060.44. This represents a 7.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Allison Aden sold 1,473 shares of the firm's stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $625.00, for a total transaction of $920,625.00. Following the completion of the sale, the executive vice president owned 9,147 shares of the company's stock, valued at $5,716,875. This trade represents a 13.87% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 3,753 shares of company stock worth $2,266,918 over the last quarter. Insiders own 1.70% of the company's stock.

Wall Street Analysts Forecast Growth

CVCO has been the subject of a number of research reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Cavco Industries in a research report on Tuesday, May 26th. UBS Group started coverage on shares of Cavco Industries in a research report on Friday, June 5th. They issued a "buy" rating and a $700.00 price target on the stock. Zelman & Associates downgraded shares of Cavco Industries from an "outperform" rating to a "neutral" rating in a research note on Thursday, August 6th. Finally, Zacks Research lowered shares of Cavco Industries from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Cavco Industries currently has an average rating of "Hold" and a consensus target price of $700.00.

Cavco Industries Price Performance

Shares of CVCO stock opened at $582.55 on Friday. The company has a market cap of $4.48 billion, a PE ratio of 25.35 and a beta of 1.29. Cavco Industries, Inc. has a 1 year low of $443.33 and a 1 year high of $713.01. The stock's 50 day simple moving average is $584.13 and its two-hundred day simple moving average is $544.20.

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

Cavco Industries Company Profile

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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