Cavco Industries (NASDAQ:CVCO) Shares Gap Down After Earnings Miss

Cavco Industries, Inc. (NASDAQ:CVCO) shares gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $617.50, but opened at $548.60. Cavco Industries shares last traded at $522.70, with a volume of 64,144 shares changing hands.

The construction company reported $5.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $6.00 by ($0.42). Cavco Industries had a return on equity of 17.91% and a net margin of 8.37%.The business had revenue of $580.99 million for the quarter, compared to analyst estimates of $593.37 million.

Key Headlines Impacting Cavco Industries

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

• Positive Sentiment: Revenue growth and acquisition contribution — Net revenue rose 11.3% year-over‑year to $581.0M, driven by higher home sales and a $42M revenue contribution from the recent American Homestar acquisition. GlobeNewswire: Q3 Release
• Positive Sentiment: Financial services improvement and share buybacks — The financial‑services segment showed stronger gross margins (65.2% vs. 55.5% prior year) and management repurchased ≈$44M of stock in the quarter with ~$98M remaining authorization. Quiver: Q3 Summary
• Neutral Sentiment: Backlog and capacity — Backlog ended the quarter at ~$160M (4–6 weeks of production); capacity utilization fell to ~70% (from ~75% a year ago), leaving room to scale production into the spring if demand improves. GlobeNewswire: Q3 Release
• Neutral Sentiment: Conference call / outlook — Management reiterated optimism for the Spring selling season but warned industry shipments slowed in Oct–Nov; a conference call/webcast is scheduled for investor Q&A. GlobeNewswire: Q3 Release
• Negative Sentiment: Earnings and revenue missed consensus — Diluted EPS was $5.58 (down ~19% YoY) and revenue came in below street estimates, which prompted immediate negative price reaction from investors. Investing.com: Earnings Miss
• Negative Sentiment: Margin compression and lower operating profit — Consolidated gross margin narrowed (23.4% vs. 24.9% year‑ago) and income from operations declined ~14.7% as factory-built housing margins fell and SG&A increased (deal costs + integration spend). Quiver: Financial Details
• Negative Sentiment: Integration costs, higher SG&A and cash decline — The American Homestar acquisition added ~$6.9M of incremental SG&A plus ~$2.9M of deal costs; cash and cash equivalents fell to ~$224.6M, which may concern some investors given recent buybacks and increased capex. Quiver: Q3 Summary
• Negative Sentiment: Insider selling noted — Recent filings show multiple insider sales in the last six months, which can weigh on sentiment even if not determinative of fundamentals. Quiver: Insider Activity

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Zacks Research downgraded Cavco Industries from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 16th. CJS Securities raised shares of Cavco Industries to a “strong-buy” rating in a research report on Thursday, December 11th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Cavco Industries in a research note on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Cavco Industries currently has a consensus rating of “Moderate Buy” and a consensus price target of $550.00.

Insider Activity at Cavco Industries

In other news, Director Richard A. Kerley sold 500 shares of the stock in a transaction on Friday, November 7th. The shares were sold at an average price of $568.99, for a total value of $284,495.00. Following the sale, the director owned 6,669 shares in the company, valued at $3,794,594.31. This represents a 6.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cavco Industries

Several hedge funds have recently added to or reduced their stakes in the business. New York State Teachers Retirement System grew its position in Cavco Industries by 4.3% during the 4th quarter. New York State Teachers Retirement System now owns 2,697 shares of the construction company’s stock worth $1,593,000 after purchasing an additional 111 shares during the period. M&T Bank Corp purchased a new stake in shares of Cavco Industries in the fourth quarter worth about $202,000. Pictet Asset Management Holding SA grew its holdings in Cavco Industries by 25.5% during the fourth quarter. Pictet Asset Management Holding SA now owns 1,249 shares of the construction company’s stock worth $738,000 after acquiring an additional 254 shares during the period. Huntleigh Advisors Inc. raised its position in Cavco Industries by 5.4% during the fourth quarter. Huntleigh Advisors Inc. now owns 1,731 shares of the construction company’s stock valued at $1,023,000 after acquiring an additional 89 shares in the last quarter. Finally, ST Germain D J Co. Inc. acquired a new position in Cavco Industries in the fourth quarter valued at approximately $180,000. 95.56% of the stock is owned by hedge funds and other institutional investors.

Cavco Industries Trading Down 20.3%

The company has a 50-day simple moving average of $616.41 and a 200 day simple moving average of $552.38. The firm has a market cap of $3.84 billion, a PE ratio of 21.37 and a beta of 1.31.

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.