Cavco Industries executive sells shares worth more than $1.6 million via Investing.com

Steven G. Bunger, director at Cavco Industries Inc. (NASDAQ: ), a company known for manufacturing mobile homes, recently sold 4,000 shares of the company’s stock, according to a recent filing with the SEC. The transaction took place on September 12, 2024, with the shares sold at a weighted average price of $409.20, resulting in a total value of $1,636,800.

This sale comes alongside a separate transaction in which Bunger purchased the same number of shares through an exercise of an option at a price of $171.60 per share, for a total of $686,400. It’s worth noting that the options exercised by Bunger became fully exercisable as of April 28, 2021, as disclosed in the footnotes to the SEC filing.

Following these transactions, Bunger’s holdings in Cavco Industries adjusted to a total of 6,547 shares of common stock held directly. The filing was signed by attorney Seth G. Schuknecht on Bunger’s behalf.

Investors often monitor insider trading because it can provide information about executives’ confidence in the company’s performance and prospects. Insider trades in Cavco Industries stock are routinely disclosed in accordance with SEC regulations, providing market transparency.

In other recent news, Cavco Industries Inc. experienced significant changes and developments. The company recently announced a leadership transition at its insurance arm, Standard Casualty Company, with Regan Fackrell taking over as chairman from Steve Like. This move is part of Cavco Industries’ ongoing management strategy.

Cavco Industries reported a slight increase in net income for Q1 FY2025, largely driven by its financial services segment. However, earnings were hit by higher insurance claims. Despite this, the company received a boost from analysts Craig-Hallum, who raised their price target to $422.00, reflecting the company’s solid performance in its housing segments.

The company is also managing the impact of Hurricane Beryl, with losses expected to be within reinsurance limits. In addition, Cavco Industries’ cash balance increased to $359.3 million, an increase from the previous fiscal year, and inventory expanded 21%, indicating stronger order rates.

In addition to these developments, Cavco Industries is actively pursuing mergers and acquisitions, particularly in their lending operations. Despite facing price competition in Texas and a decline in average selling price due to the shift to lower priced units, the company remains focused on strategic capital allocation and operational improvements.

InvestingPro Insights

Amid recent insider trading at Cavco Industries Inc. (NASDAQ:CVCO), investors may find a particular interest in the company’s financial health and performance. According to InvestingPro, Cavco has more cash than debt on its balance sheet, which is a promising sign of financial stability. Additionally, the company has demonstrated strong profitability over the past year, with a total price-to-date return of 23.34%.

InvestingPro data further shows that Cavco Industries has a market cap of $3.53 billion and trades at a price-to-earnings (P/E) ratio of 24.82, reflecting investor sentiment about the company’s earnings potential. Despite an 11.51% decline in revenue over the trailing twelve months to Q1 2023, the company’s gross profit margin remains healthy at 21.7%. This suggests that Cavco has been able to maintain the profitability of its operations.

Moreover, with the price close to its 52-week high at 98.87% from the top, Cavco’s stock performance indicates market confidence, which aligns with InvestingPro Advice highlighting that the company is trading near its 52-week high weeks. Investors considering Cavco Industries for their portfolio can explore additional insights and tips on InvestingPro, where 9 more InvestingPro Tips are available, providing a comprehensive analysis of the company’s financial health and stock performance.

For those interested in a deeper dive into the financial and stock performance of Cavco Industries, Additional InvestingPro Tips can be accessed by visiting https://www.investing.com/pro/CVCO.

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