Cavco’s Quiet Adjustment

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Ashford Capital Management, a name whispered among those who track the currents of capital, has, with a certain quietude, reduced its holding in Cavco Industries. A subtraction of 19,607 shares, amounting to approximately $11.11 million, based on the quarter’s average reckoning. It is a transaction, like most, devoid of drama, yet hinting at a subtle shift in sentiment. The fund retains 28,412 shares, a smaller piece of the whole, valued at $16.78 million. The net change, a figure that attempts to capture both the ebb and flow of the market, lands at $11.10 million. One wonders if the accountants, poring over these numbers, ever pause to consider the lives touched, or not touched, by these calculations.

A Smaller Footprint

The adjustment sees Cavco Industries now representing a mere 1.87% of Ashford’s reportable assets, a decline from the prior quarter’s 3.1%. A shrinking stake, as if the fund is easing its grip, not necessarily in disapproval, but perhaps in a quiet acceptance of the inevitable. The larger holdings remain: Globalstar, Ligand, VICR, RDVT, and VTI, names that, to the uninitiated, are merely abbreviations, symbols of a world unseen. These represent $60.98 million, $40.42 million, $38.78 million, $34.33 million, and $31.46 million, respectively – sums that seem almost abstract, detached from any tangible reality.

Cavco’s share price, as of February 13, 2026, stood at $590.38, a 10.3% increase over the past year. A respectable gain, certainly, but one that lags behind the broader market, falling short of the S&P 500 by a mere 1.5 percentage points. A small difference, perhaps, but in the grand scheme of things, these small margins can define success, or a quiet resignation.

The Company Itself

Cavco Industries, a manufacturer of prefabricated homes, modular units, and those curious structures known as park model RVs, operates with a certain industriousness. Revenue for the trailing twelve months reached $2.20 billion, yielding a net income of $184.42 million. Impressive figures, to be sure, yet one cannot help but wonder about the lives lived within those prefabricated walls, the hopes and dreams contained within those modular spaces.

  • Price (as of market close 2/13/26): $590.38
  • Market Capitalization: $4 billion
  • Revenue (TTM): $2.20 billion
  • Net Income (TTM): $184.42 million

The company serves a diverse clientele, from first-time homebuyers to developers and institutional clients, across the United States and Canada. It is a business built on the promise of affordable housing, a noble endeavor, yet one fraught with challenges. The integration of financial services, including mortgages and insurance, adds a layer of complexity, a precarious balancing act between risk and reward.

A Reallocation, Not a Rejection

This trimming of Cavco, one suspects, is not born of panic, but of a pragmatic reallocation of capital. After a period of strong growth in the manufactured housing sector, a slight paring back is almost inevitable. The stock, while solid, has not kept pace with the more exuberant corners of the market. The recent quarterly report showed revenue of $581 million, an 11.3% increase year over year, driven by higher sales volume and pricing. Gross profit rose, but margins compressed, and diluted earnings per share declined by 19% to $5.58. The acquisition of American Homestar added $42 million in revenue, but also incremental costs. The backlog stands at $160 million, representing roughly four to six weeks of production. A comfortable cushion, perhaps, but not a guarantee against the uncertainties that lie ahead.

Within a portfolio weighted towards higher-beta names like Globalstar and Ligand, Cavco now represents a modest 1.87% of assets. A sizing decision, it seems, more than a conviction call. The market, like life itself, is a series of small adjustments, quiet shifts in emphasis. And so, the story of Cavco Industries continues, a quiet drama unfolding against the backdrop of a vast and indifferent world.

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2026-02-17 18:12