Is Cavco Industries, Inc. (CVCO) A Good Stock To Buy?

Judging by the fact that Cavco Industries, Inc. (NASDAQ:CVCO) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there were a few money managers that decided to sell off their entire stakes in the third quarter. Interestingly, Paul Tudor Jones’ Tudor Investment Corp said goodbye to the biggest position of all the hedgies monitored by Insider Monkey, worth an estimated $0.3 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also said goodbye to its stock, about $0.3 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Cavco Industries, Inc. (NASDAQ:CVCO) but similarly valued. These stocks are Eros International plc (NYSE:EROS), Noble Midstream Partners LP (NYSE:NBLX), Heartland Financial USA Inc (NASDAQ:HTLF), and Universal Insurance Holdings, Inc. (NYSEAMEX:UVE). All of these stocks’ market caps resemble CVCO’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $166 million in CVCO’s case. Universal Insurance Holdings, Inc. (NYSEAMEX:UVE) is the most popular stock in this table. On the other hand Noble Midstream Partners LP (NYSE:NBLX) is the least popular one with only 4 bullish hedge fund positions. Cavco Industries, Inc. (NASDAQ:CVCO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard UVE might be a better candidate to consider taking a long position in.

Disclosure: None