Copart (NASDAQ:CPRT) Upgraded at Barrington Research

Key Points

• Barrington Research upgraded Copart from “market perform” to “outperform” and set a $40 price target, implying approximately 30% upside. Analysts overall maintain a “Moderate Buy” consensus with an average target of $37.57.
• Copart’s latest quarter showed revenue of $1.15 billion, up 2.4% year over year and slightly above estimates, but EPS of $0.35 missed consensus and declined from $0.41 a year earlier.
• Copart agreed to acquire ACV Auctions for approximately $1.9 billion, expanding into dealer-to-dealer wholesale vehicle remarketing; management expects the deal to be earnings-neutral initially and accretive beginning in fiscal 2028.

Copart (NASDAQ:CPRT - Get Free Report) was upgraded by investment analysts at Barrington Research from a "market perform" rating to an "outperform" rating in a report issued on Friday, Benzinga reports. The brokerage presently has a $40.00 price target on the business services provider's stock. Barrington Research's price target indicates a potential upside of 30.08% from the company's current price.

A number of other equities analysts have also issued reports on CPRT. Barclays set a $25.00 price target on Copart and gave the stock an "underweight" rating in a report on Wednesday, August 26th. Robert W. Baird decreased their price objective on Copart from $42.00 to $38.00 and set an "outperform" rating for the company in a research report on Friday. Zacks Research upgraded Copart from a "strong sell" rating to a "hold" rating in a research note on Monday. Freedom Capital raised Copart to a "strong-buy" rating in a report on Friday, June 26th. Finally, Stephens restated an "equal weight" rating and set a $35.00 price target on shares of Copart in a research note on Thursday, August 20th. Two analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $37.57.

Copart Trading Down 4.0%

Shares of NASDAQ CPRT opened at $30.75 on Friday. The stock has a market cap of $28.47 billion, a P/E ratio of 19.10, a P/E/G ratio of 1.53 and a beta of 1.03. Copart has a twelve month low of $26.81 and a twelve month high of $49.05. The stock has a 50 day moving average of $30.35 and a two-hundred day moving average of $32.08.

Copart (NASDAQ:CPRT - Get Free Report) last announced its earnings results on Thursday, September 10th. The business services provider reported $0.35 EPS for the quarter, missing analysts' consensus estimates of $0.38 by ($0.03). The business had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.14 billion. Copart had a net margin of 33.48% and a return on equity of 16.63%. The business's revenue was up 2.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.41 earnings per share. As a group, research analysts predict that Copart will post 1.58 earnings per share for the current year.

Insider Buying and Selling at Copart

In other news, CEO Jeffrey Liaw sold 27,745 shares of the firm's stock in a transaction on Tuesday, July 28th. The stock was sold at an average price of $30.49, for a total value of $845,945.05. Following the completion of the transaction, the chief executive officer owned 99,641 shares in the company, valued at $3,038,054.09. This trade represents a 21.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 9.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Copart

Large investors have recently modified their holdings of the company. Quadrant Capital Group LLC grew its stake in Copart by 1.3% in the 3rd quarter. Quadrant Capital Group LLC now owns 20,693 shares of the business services provider's stock valued at $931,000 after purchasing an additional 264 shares during the period. Geneos Wealth Management Inc. raised its holdings in shares of Copart by 23.8% in the 2nd quarter. Geneos Wealth Management Inc. now owns 1,384 shares of the business services provider's stock valued at $68,000 after acquiring an additional 266 shares in the last quarter. Valeo Financial Advisors LLC raised its stake in Copart by 4.6% in the fourth quarter. Valeo Financial Advisors LLC now owns 6,395 shares of the business services provider's stock valued at $250,000 after purchasing an additional 282 shares in the last quarter. Parkside Financial Bank & Trust boosted its holdings in shares of Copart by 11.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 2,793 shares of the business services provider's stock worth $109,000 after purchasing an additional 288 shares in the last quarter. Finally, American Trust lifted its holdings in shares of Copart by 2.1% in the 3rd quarter. American Trust now owns 14,230 shares of the business services provider's stock worth $640,000 after acquiring an additional 295 shares during the last quarter. 85.78% of the stock is currently owned by hedge funds and other institutional investors.

Key Copart News

Here are the key news stories impacting Copart this week:

• Positive Sentiment: Copart agreed to acquire ACV Auctions for $10.50 per share in cash, valuing the digital automotive marketplace at approximately $1.9 billion. The deal expands Copart beyond salvage auctions into dealer-to-dealer wholesale remarketing and adds inspection, valuation, and vehicle-pricing data capabilities. Management expects the transaction to support earnings growth beginning in fiscal 2028. Copart to Acquire ACV, Expanding Position Across the Vehicle Remarketing Ecosystem
• Positive Sentiment: Fiscal fourth-quarter revenue reached $1.15 billion, exceeding analysts’ $1.14 billion estimate. Revenue increased 2.4% year over year, while vehicle sales rose 8.3% to $182.9 million. Investors appear to view ACV as a potential long-term growth driver that could broaden Copart’s market and accelerate its digital remarketing strategy. Copart Q4 Revenue Rises 2.4% to $1.15 Billion
• Neutral Sentiment: Copart plans to fund the acquisition with cash on hand. Management expects the combination to be earnings-neutral during the first full year of ownership before becoming accretive, making the strategic benefits longer term rather than an immediate earnings boost. Copart to buy ACV Auctions in $1.9 billion deal
• Negative Sentiment: Quarterly diluted EPS was $0.35, below consensus estimates near $0.38–$0.39 and down from $0.41 a year earlier. Net income fell 17.4% to $327.4 million, gross profit declined 5.5%, and full-year EPS decreased to $1.55 from $1.59, highlighting near-term margin and earnings pressure. Copart Inc. Lags Q4 Earnings Estimates

Copart Company Profile

Copart, Inc NASDAQ: CPRT provides online vehicle auction and remarketing services. The company operates a global marketplace where damaged, recovered, used and other vehicles are sold primarily through online auctions. Its offerings include salvage and clean-title vehicles, with inventory sourced from insurance companies, banks, dealerships, fleet operators, rental companies, government agencies and other organizations.

Copart supports the vehicle remarketing process through inspection, storage, transportation, title processing and auction services.

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