California-based Tensile Capital Management acquired 308,162 shares of Champion Homes for $23.5 million in the third quarter, representing 2.9% of their assets. The stake is significant but not in their top five holdings. On November 14, a new position in Champion Homes was disclosed, adding to Tensile’s $800.4 million U.S. equity holdings.

Champion Homes, a leading provider of factory-built housing, saw its shares priced at $85.38 on Friday, down 18% over the past year. The company generates revenue through various services and has a market capitalization of $4.8 billion, with $2.6 billion in revenue and $220.8 million in net income.

The move by Tensile Capital Management to invest in Champion Homes comes after the company reported strong quarterly results. With net sales up 11% and EPS rising nearly 10%, the company is showing strong growth potential. This investment represents 2.9% of Tensile’s assets and aligns with their strategy of investing in category leaders.

Champion Homes operates under various brands, offering a range of factory-built housing solutions. The company’s integrated model enables efficient delivery and customization of structures. With a strong presence in the U.S. and Canada, Champion Homes is well-positioned to address housing needs in the residential construction market.

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Read more at Yahoo Finance: Why One Fund Just Put $23.5 Million Into Champion Homes Despite an 18% Stock Slide