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 (CVCO +0.07%), 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.