Militia Capital Management LLC Makes New Investment in Cavco Industries, Inc. $CVCO

Key Points

• Militia Capital Management disclosed a new position in Cavco Industries, buying 3,740 shares worth about $1.81 million in the first quarter.
• Wall Street sentiment on CVCO is moderately positive, with UBS initiating coverage at Buy and a $700 price target; the consensus rating is Moderate Buy with an average target of $625.
• Cavco reported Q1 earnings of $5.42 per share, beating expectations, though revenue came in below estimates; the stock recently traded around $570 with a market cap of about $4.4 billion.

Militia Capital Management LLC bought a new stake in shares of Cavco Industries, Inc. (NASDAQ:CVCO - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 3,740 shares of the construction company's stock, valued at approximately $1,811,000.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Aster Capital Management DIFC Ltd purchased a new stake in shares of Cavco Industries during the 4th quarter worth $46,000. Kemnay Advisory Services Inc. purchased a new position in Cavco Industries in the fourth quarter valued at about $50,000. Los Angeles Capital Management LLC purchased a new position in Cavco Industries in the fourth quarter valued at about $54,000. Osaic Holdings Inc. raised its holdings in Cavco Industries by 118.2% in the second quarter. Osaic Holdings Inc. now owns 120 shares of the construction company's stock worth $57,000 after purchasing an additional 65 shares in the last quarter. Finally, Danske Bank A S bought a new position in Cavco Industries in the third quarter worth about $58,000. 95.56% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have commented on CVCO. Zacks Research raised shares of Cavco Industries from a "strong sell" rating to a "hold" rating in a research report on Friday, April 3rd. UBS Group initiated coverage on shares of Cavco Industries in a research report on Friday, June 5th. They issued a "buy" rating and a $700.00 price objective on the stock. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Cavco Industries in a research note on Tuesday, May 26th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $625.00.

Cavco Industries Price Performance

Shares of CVCO stock opened at $570.05 on Thursday. Cavco Industries, Inc. has a 1-year low of $397.38 and a 1-year high of $713.01. The stock's fifty day moving average price is $561.25 and its 200 day moving average price is $553.79. The company has a market cap of $4.40 billion, a price-to-earnings ratio of 23.78 and a beta of 1.28.

Cavco Industries (NASDAQ:CVCO - Get Free Report) last announced its earnings results on Thursday, May 21st. The construction company reported $5.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.30 by $0.12. Cavco Industries had a return on equity of 17.55% and a net margin of 8.49%.The company had revenue of $550.13 million for the quarter, compared to analyst estimates of $571.06 million. As a group, equities research analysts anticipate that Cavco Industries, Inc. will post 24.5 earnings per share for the current year.

Insider Activity

In other Cavco Industries news, Director Richard A. Kerley sold 500 shares of the business's 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 sale, the director owned 6,169 shares of the company's stock, valued at approximately $3,632,060.44. The trade was a 7.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Allison Aden sold 1,473 shares of the company's stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $625.00, for a total transaction of $920,625.00. Following the transaction, the executive vice president owned 9,147 shares in the company, valued at $5,716,875. The trade was a 13.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 3,541 shares of company stock worth $2,121,932 over the last 90 days. 1.70% of the stock is currently owned by corporate insiders.

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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