Company Overview - Cavco Industries is a leading producer of manufactured and modular homes in North America, utilizing a vertically integrated model that combines manufacturing, retail, financing, and insurance services [6] - The company operates through a network of company-owned retail stores and independent distributors, addressing diverse customer segments and supporting growth in the residential construction market [6] Financial Performance - As of February 17, 2026, Cavco Industries reported a market capitalization of $4.57 billion, with a revenue of $2.20 billion and a net income of $184.42 million for the trailing twelve months [4] - The company achieved quarterly revenue of $581 million, reflecting an 11% increase, while net factory-built housing revenue per home rose by 8% year over year [9] - For the first nine months of fiscal 2026, net income reached $148 million, with diluted EPS climbing to $18.55 [9] Recent Developments - Cannell Capital sold 20,801 shares of Cavco Industries, reducing its position from 9% to 3.25% of reportable U.S. equity AUM, indicating a potential shift in risk tolerance [7][9] - The transaction was valued at approximately $11.79 million based on average pricing, with Cavco's shares priced at $585.29, up 9% over the past year, but underperforming the S&P 500's 16% gain [2][7] Operational Insights - The financial services segment saw significant margin expansion, with gross profit hitting 65.2% in the quarter [9] - However, factory-built housing gross margin slipped to 21.7%, and income from operations in the housing segment declined due to increased SG&A expenses related to acquisitions [10] - The current backlog stands at $160 million, representing approximately four to six weeks of production [10]

Company Overview - Cavco Industries is a leading U.S. producer of manufactured and modular homes, operating through a wide retail and distribution network [6] - The company generates revenue from the sale of manufactured housing, modular units, financial services, and a network of retail outlets [7] - As of February 13, 2026, Cavco Industries shares were priced at $590.38, reflecting a 10.3% increase over the past year, but underperforming the S&P 500 by 1.5 percentage points [6] Financial Performance - In its fiscal third quarter, Cavco generated $581 million in revenue, an 11.3% year-over-year increase, driven by higher home sales volume and pricing [10] - Gross profit rose to $135.9 million, although margins compressed, and diluted EPS declined 19% to $5.58 [10] - The company closed its American Homestar acquisition during the quarter, contributing an additional $42 million in revenue [10] Investment Activity - Ashford Capital Management reduced its position in Cavco Industries by 19,607 shares, valued at approximately $11.11 million based on quarterly average pricing [2] - The remaining stake in Cavco is 28,412 shares, with a quarter-end position valued at $16.78 million [2] - Cavco now accounts for 1.87% of Ashford's reportable assets, down from 3.1% the prior quarter, indicating a sizing decision rather than a lack of conviction [6][11] Market Position - Cavco's integrated approach, including financial services and insurance, supports a resilient business model and positions the company as a key player in the residential construction sector [8] - The backlog stands at $160 million, representing approximately four to six weeks of production [10]