Zacks Research Downgrades Cavco Industries (NASDAQ:CVCO) to Strong Sell

Cavco Industries (NASDAQ:CVCO) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Monday,Zacks.com reports.

Other research analysts also recently issued research reports about the stock. Weiss Ratings reiterated a “hold (c+)” rating on shares of Cavco Industries in a research report on Tuesday, May 26th. UBS Group assumed coverage on Cavco Industries in a research report on Friday, June 5th. They set a “buy” rating and a $700.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $700.00.

Cavco Industries Price Performance

CVCO opened at $566.56 on Monday. The firm has a fifty day moving average price of $575.21 and a 200 day moving average price of $549.07. Cavco Industries has a 1 year low of $439.29 and a 1 year high of $713.01. The stock has a market cap of $4.37 billion, a P/E ratio of 24.65 and a beta of 1.29.

Cavco Industries (NASDAQ:CVCO) last announced its quarterly earnings results 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). The firm had revenue of $609.96 million for 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 analysts expect that Cavco Industries will post 22.75 EPS for the current year.

Insider Activity

In other news, CAO Paul Bigbee sold 200 shares of the firm’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $537.75, for a total value of $107,550.00. Following the transaction, the chief accounting officer directly owned 1,105 shares of the company’s stock, valued at approximately $594,213.75. This trade represents a 15.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Richard A. Kerley sold 500 shares of the business’s stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $588.76, for a total transaction of $294,380.00. Following the transaction, the director owned 6,169 shares in the company, valued at $3,632,060.44. The trade was a 7.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 3,571 shares of company stock worth $2,139,031 over the last three months. Insiders own 1.70% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Parkside Financial Bank & Trust grew its position in shares of Cavco Industries by 13.4% in the fourth quarter. Parkside Financial Bank & Trust now owns 152 shares of the construction company’s stock valued at $90,000 after purchasing an additional 18 shares in the last quarter. Sheets Smith Wealth Management increased its holdings in shares of Cavco Industries by 0.9% in the first quarter. Sheets Smith Wealth Management now owns 2,250 shares of the construction company’s stock valued at $1,090,000 after purchasing an additional 20 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in Cavco Industries by 12.4% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 199 shares of the construction company’s stock worth $86,000 after buying an additional 22 shares in the last quarter. GAMMA Investing LLC lifted its position in Cavco Industries by 8.6% during the second quarter. GAMMA Investing LLC now owns 415 shares of the construction company’s stock worth $255,000 after buying an additional 33 shares in the last quarter. Finally, Robeco Institutional Asset Management B.V. boosted its stake in Cavco Industries by 2.8% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 1,450 shares of the construction company’s stock worth $857,000 after buying an additional 40 shares during the last quarter. 95.56% of the stock is currently owned by institutional investors and hedge funds.

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.