Punch & Associates Investment Management Inc. Acquires Shares of 53,930 Cavco Industries, Inc. $CVCO

Key Points

• Punch & Associates acquired 53,930 Cavco Industries shares worth approximately $33.1 million, giving the investment manager a 0.70% stake and making CVCO its 16th-largest holding.
• Institutional investors own 95.56% of Cavco’s stock, while insiders have sold 3,553 shares worth about $2.16 million over the past 90 days.
• Cavco reported quarterly EPS of $5.43, below the $5.69 analyst consensus, though revenue of $609.96 million exceeded expectations. Analysts collectively rate the stock “Hold,” with an average price target of $700 versus a recent price of $577.36.

Punch & Associates Investment Management Inc. bought a new position in Cavco Industries, Inc. (NASDAQ:CVCO - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 53,930 shares of the construction company's stock, valued at approximately $33,133,000. Cavco Industries comprises 1.6% of Punch & Associates Investment Management Inc.'s holdings, making the stock its 16th biggest position. Punch & Associates Investment Management Inc. owned approximately 0.70% of Cavco Industries as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently made changes to their positions in CVCO. Northwestern Mutual Wealth Management Co. lifted its position in shares of Cavco Industries by 852,093.4% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,798,128 shares of the construction company's stock valued at $1,062,226,000 after buying an additional 1,797,917 shares during the last quarter. BlackRock Inc. purchased a new stake in Cavco Industries in the 2nd quarter worth about $767,112,000. State Street Corp increased its holdings in Cavco Industries by 6.1% in the 2nd quarter. State Street Corp now owns 380,682 shares of the construction company's stock worth $165,380,000 after acquiring an additional 21,837 shares during the last quarter. Boston Partners raised its stake in Cavco Industries by 82.8% in the 3rd quarter. Boston Partners now owns 369,177 shares of the construction company's stock valued at $213,866,000 after acquiring an additional 167,230 shares during the period. Finally, Geode Capital Management LLC raised its stake in Cavco Industries by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 232,847 shares of the construction company's stock valued at $137,569,000 after acquiring an additional 1,018 shares during the period. 95.56% of the stock is currently owned by institutional investors.

Cavco Industries Stock Performance

Shares of NASDAQ CVCO opened at $577.36 on Thursday. Cavco Industries, Inc. has a fifty-two week low of $443.33 and a fifty-two week high of $713.01. The stock has a market cap of $4.44 billion, a PE ratio of 25.12 and a beta of 1.29. The stock has a fifty day moving average of $583.42 and a 200-day moving average of $546.42.

Cavco Industries (NASDAQ:CVCO - Get Free Report) last issued 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 return on equity of 16.51% and a net margin of 7.89%.The company had revenue of $609.96 million for the quarter, compared to analysts' expectations of $590.54 million. On average, sell-side analysts predict that Cavco Industries, Inc. will post 22.75 EPS for the current year.

Insider Activity

In other news, CAO Paul Bigbee sold 342 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $592.00, for a total value of $202,464.00. Following the completion of the transaction, the chief accounting officer directly owned 736 shares in the company, valued at approximately $435,712. This trade represents a 31.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard A. Kerley sold 500 shares of the firm'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 completion of 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 3,553 shares of company stock worth $2,159,368 over the last ninety days. Company insiders own 1.70% of the company's stock.

Analyst Upgrades and Downgrades

CVCO has been the subject of a number of research reports. Zacks Research lowered shares of Cavco Industries from a "hold" rating to a "strong sell" rating in a research report on Monday, August 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 target on the stock. Zelman & Associates cut shares of Cavco Industries from an "outperform" rating to a "neutral" rating in a research note on Thursday, August 6th. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Cavco Industries in a research note on Friday, August 21st. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $700.00.

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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