Cavco Stock Up 9% in a Year as One Fund Sells Off $12 Million in Shares

On February 17, 2026, Cannell Capital disclosed in an SEC filing that it sold 20,801 shares of Cavco Industries (NASDAQ:CVCO), an estimated $11.79 million trade based on quarterly average pricing.

What happened

According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Cannell Capital sold 20,801 shares of Cavco Industries in the fourth quarter. The estimated transaction value was $11.79 million, based on the period’s average closing share price. The fund’s position in Cavco Industries ended the quarter at 11,360 shares, with a reported value of $6.71 million. The net position change, including market price movement, totaled $11.97 million.

What else to know

• Cannell Capital’s Cavco Industries holding now represents 3.25% of reportable U.S. equity AUM, down from 9% before the trade.
• Top five holdings as of the filing:
  • NYSE: NOA: $15.45 million
  • NASDAQ: EOSE: $14.99 million
  • NASDAQ: SNDL: $14.54 million
  • NYSE: NPKI: $11.21 million
  • NYSE: NGS: $10.98 million
• As of February 17, 2026, Cavco Industries shares were priced at $585.29, up 9% over the past year and underperforming the S&P 500’s roughly 16% gain in the same period.

Company overview

Company snapshot

• Cavco Industries manufactures and retails factory-built homes, modular homes, park model RVs, vacation cabins, and commercial structures under multiple brand names.
• The company generates revenue through the sale of factory-built housing, mortgage origination, and insurance services for manufactured home buyers.
• It serves homebuyers, independent distributors, residential developers, and planned community operators primarily across the United States and Canada.

Cavco Industries, Inc. is a leading producer of manufactured and modular homes in North America, operating through an extensive network of company-owned retail stores and independent distributors. The company leverages a vertically integrated model, combining manufacturing, retail, financing, and insurance services to capture value across the housing supply chain. Its broad product offering and multi-brand strategy enable it to address diverse customer segments, supporting resilience and growth in the residential construction market.

What this transaction means for investors

Cannell’s sale signals a reset in exposure to a housing name that has executed well but still lags the broader market. Cavco recently delivered $581 million in quarterly revenue, up 11%, with net factory-built housing revenue per home rising 8% year over year. For the first nine months of fiscal 2026, net income reached $148 million and diluted EPS climbed to $18.55. Financial services margins expanded meaningfully, with segment gross profit hitting 65.2% in the quarter.

Still, factory-built housing gross margin slipped to 21.7%, and income from operations in the housing segment declined as SG&A rose, partly tied to the American Homestar acquisition and deal costs. Meanwhile, the backlog sits at $160 million, representing roughly four to six weeks of production.

This portfolio already leans into smaller, more volatile names like Eos and other event-driven plays, so reducing Cavco from 9% of assets to 3% signals a potential shift in individual risk tolerance. Ultimately, Cavco remains a high-quality operator in affordable housing with a strong balance sheet and active buybacks. But housing demand, financing conditions, and margin discipline will drive the next leg.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends SNDL. The Motley Fool has a disclosure policy.