Cavco Industries (NASDAQ:CVCO) Shares Break Above 200 Day Moving Average - Time to Sell?

Key Points

• Cavco shares broke above their 200-day moving average, reaching $632.89 and last trading at $619, compared with the moving average of $552.09.
• The company delivered a strong fiscal second-quarter performance, with EPS of $7.17 versus the $5.52 consensus and revenue of $656.4 million, up 17.9% year over year.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a $690 target price, though the stock’s recent rally leaves only modest upside to some targets. Potential growth could come from data-center workforce housing orders.

Cavco Industries, Inc. (NASDAQ:CVCO - Get Free Report) passed above its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $552.09 and traded as high as $632.89. Cavco Industries shares last traded at $619.00, with a volume of 248,700 shares traded.

Trending Headlines about Cavco Industries

Here are the key news stories impacting Cavco Industries this week:

• Positive Sentiment: Large earnings beat: Cavco reported fiscal Q2 EPS of $7.17, well above the $5.52 analyst consensus, while revenue reached $656.4 million versus expectations of $613.1 million. Cavco Industries earnings report
• Positive Sentiment: Strong year-over-year growth: Quarterly revenue increased 17.9% from $556.5 million, driven by higher home sales volume and a higher average selling price per home. The result supports the view that improving scale and backlog are strengthening the company’s long-term growth outlook. Cavco fiscal 2027 second-quarter results
• Positive Sentiment: New growth opportunity: Reports indicated that “data center workforce housing” orders are beginning to arrive, adding a potentially meaningful source of demand for Cavco’s manufactured housing products. Cavco earnings beat and workforce housing orders
• Positive Sentiment: Constructive analyst view: Northland Securities initiated coverage with an “Outperform” rating and a $650 price target. Its estimates imply EPS growth to $22.49 in fiscal 2027 and $27.71 in fiscal 2028. Northland Securities initiates coverage
• Neutral Sentiment: Sell-side analysts overall rate CVCO a “Moderate Buy,” although the $650 Northland target suggests only modest additional upside relative to the latest trading level. Cavco analyst consensus rating

Analyst Upgrades and Downgrades

CVCO has been the subject of several recent research reports. Weiss Ratings upgraded shares of Cavco Industries from a "hold (c)" rating to a "hold (c+)" rating in a research report on Tuesday, September 29th. Zelman & Associates downgraded shares of Cavco Industries from an "outperform" rating to a "neutral" rating in a research report on Thursday, August 6th. Zacks Research raised shares of Cavco Industries from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 29th. Oppenheimer assumed coverage on shares of Cavco Industries in a research report on Wednesday, September 30th. They issued an "outperform" rating and a $720.00 target price for the company. Finally, Northland Securities began coverage on shares of Cavco Industries in a research note on Wednesday. They issued an "outperform" rating and a $650.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $690.00.

Cavco Industries Price Performance

The firm's fifty day moving average is $549.07 and its two-hundred day moving average is $552.09. The firm has a market cap of $4.76 billion, a price-to-earnings ratio of 26.23 and a beta of 1.27.

Cavco Industries (NASDAQ:CVCO - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The construction company reported $7.17 EPS for the quarter, topping analysts' consensus estimates of $5.52 by $1.65. Cavco Industries had a net margin of 7.68% and a return on equity of 16.74%. The company had revenue of $656.38 million for the quarter, compared to the consensus estimate of $613.12 million. On average, equities analysts forecast that Cavco Industries, Inc. will post 22.60 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related 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 transaction of $202,464.00. Following the completion of the sale, 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders own 1.70% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Fifth Third Bancorp grew its holdings in shares of Cavco Industries by 599.0% during the 1st quarter. Fifth Third Bancorp now owns 2,824 shares of the construction company's stock worth $1,367,000 after purchasing an additional 2,420 shares in the last quarter. Robotti Robert acquired a new position in shares of Cavco Industries in the second quarter valued at $19,903,000. California State Teachers Retirement System raised its stake in shares of Cavco Industries by 24.1% in the first quarter. California State Teachers Retirement System now owns 9,319 shares of the construction company's stock valued at $4,513,000 after purchasing an additional 1,808 shares in the last quarter. Philadelphia Financial Management of San Francisco LLC bought a new position in Cavco Industries in the second quarter worth $5,412,688. Finally, The Manufacturers Life Insurance Company bought a new position in Cavco Industries in the second quarter worth $2,305,000. Hedge funds and other institutional investors own 95.56% of the company's stock.

Cavco Industries Company Profile

Cavco Industries, Inc is a manufacturer of factory-built housing and related products. The company designs and produces manufactured homes, modular homes, park model recreational vehicles, and commercial structures for residential, hospitality, and other applications. Its homes are sold through independent retailers, company-owned retail locations, and a network of housing dealers.

Cavco markets its products under several brands, including Cavco, Fleetwood Homes, Palm Harbor Homes, Nationwide Homes, Solitaire Homes, and CountryPlace.

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