PHOENIX—Richard A. Kerley, a director at Cavco Industries Inc. (NASDAQ:CVCO), recently sold 500 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $516.27 each, totaling approximately $258,135. Following this transaction, Kerley, through the Kerley Family Trust, holds 7,383 shares of Cavco Industries. The transaction was executed on November 26, 2024.
In other recent news, Cavco Industries reported a 12.3% increase in net revenue to $507.5 million for the second quarter of fiscal year 2025, despite weather-related setbacks. This growth was driven by a 15.7% rise in homes sold, with the factory-built housing segment contributing $486.3 million to the revenue. However, the company experienced a slight dip in gross margins to 22.9%, attributed to lower average selling prices and losses in financial services.
Craig-Hallum maintained a positive outlook on Cavco Industries, raising its price target to $495 from $422, citing Cavco's potential to gain market share in the manufactured housing sector. The firm's optimism is rooted in Cavco's solid quarterly results and the anticipation of continued growth, driven by strong order activity and backlogs.
In addition to these developments, Cavco Industries is actively considering potential mergers and acquisitions to enhance plant capacity and efficiency. The company also reported an increase in treasury shares and a robust backlog, indicating strong future demand. These are the recent developments in Cavco Industries, Inc.
InvestingPro Insights
The recent sale of Cavco Industries Inc. (NASDAQ:CVCO) shares by director Richard A. Kerley comes at a time when the company's stock is showing remarkable strength in the market. According to InvestingPro data, CVCO has demonstrated a significant return over the last week, with a 9.64% price total return. This short-term performance is part of a broader trend, as the stock has shown strong returns over various timeframes, including a 26.2% return over the last month and an impressive 87.94% return over the past year.
InvestingPro Tips highlight that CVCO holds more cash than debt on its balance sheet, indicating a solid financial position. This financial strength is further underscored by the fact that the company's liquid assets exceed its short-term obligations. These factors may contribute to investor confidence in the stock, despite the director's recent sale.
However, potential investors should note that CVCO is trading at a high EBITDA valuation multiple, and the stock's RSI suggests it may be in overbought territory. These insights, along with 11 additional tips available on InvestingPro, provide a comprehensive view of CVCO's current market position and potential future performance.
The company's financial health appears robust, with a market capitalization of $4.18 billion and a P/E ratio of 28.82. Cavco Industries has been profitable over the last twelve months, with a revenue of $1.85 billion and an EBITDA of $182.48 million for the same period. While the company has experienced a revenue growth decline of 2.78% over the last twelve months, it has shown a quarterly revenue growth of 12.26% in the most recent quarter.
For investors seeking a deeper understanding of Cavco Industries' financial metrics and market performance, InvestingPro offers a wealth of additional insights and tips to inform investment decisions.
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