Copart (NASDAQ:CPRT) Sets New 1-Year Low - What's Next?

Key Points

• Copart shares hit a new 52-week low, trading as low as $27.23 and ending near $27.28, well below its recent moving averages. The drop came despite heavy volume of more than 12.4 million shares.
• Analyst sentiment is mixed but still leans positive overall, with a consensus rating of “Moderate Buy” and an average price target of $44.50. Recent reports ranged from bullish upgrades to a sell downgrade.
• The company’s latest earnings were solid, with EPS of $0.43 beating estimates and revenue of $1.24 billion topping forecasts. Copart also reported year-over-year revenue growth of 2.1% and strong profitability metrics.

Copart, Inc. (NASDAQ:CPRT - Get Free Report) shares hit a new 52-week low on Wednesday . The stock traded as low as $27.23 and last traded at $27.28, with a volume of 12454387 shares. The stock had previously closed at $27.52.

Analysts Set New Price Targets

CPRT has been the subject of a number of research reports. Jefferies Financial Group set a $45.00 price target on shares of Copart in a research report on Friday, May 22nd. Zacks Research raised Copart from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Weiss Ratings cut Copart from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, May 1st. Finally, Freedom Capital raised Copart to a "strong-buy" rating in a report on Friday, June 26th. Three investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $44.50.

Copart Price Performance

The company has a market cap of $25.26 billion, a price-to-earnings ratio of 16.94 and a beta of 1.02. The business's 50-day simple moving average is $31.08 and its 200-day simple moving average is $34.69.

Copart (NASDAQ:CPRT - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The business services provider reported $0.43 EPS for the quarter, beating the consensus estimate of $0.41 by $0.02. Copart had a net margin of 33.48% and a return on equity of 16.63%. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period in the prior year, the business earned $0.42 earnings per share. The company's quarterly revenue was up 2.1% on a year-over-year basis. As a group, sell-side analysts forecast that Copart, Inc. will post 1.58 EPS for the current year.

Institutional Investors Weigh In On Copart

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new position in shares of Copart in the fourth quarter valued at approximately $569,569,000. Capital World Investors lifted its stake in shares of Copart by 25.1% during the fourth quarter. Capital World Investors now owns 27,728,398 shares of the business services provider's stock valued at $1,085,588,000 after buying an additional 5,555,101 shares during the period. Capital International Investors acquired a new stake in Copart during the fourth quarter worth approximately $195,637,000. Deutsche Bank AG grew its stake in Copart by 94.0% in the 4th quarter. Deutsche Bank AG now owns 9,955,661 shares of the business services provider's stock worth $389,764,000 after acquiring an additional 4,823,111 shares during the period. Finally, Bank of New York Mellon Corp raised its holdings in Copart by 21.7% in the 4th quarter. Bank of New York Mellon Corp now owns 21,982,589 shares of the business services provider's stock valued at $860,618,000 after acquiring an additional 3,918,610 shares during the last quarter. Hedge funds and other institutional investors own 85.78% of the company's stock.

Copart Company Profile

Copart NASDAQ: CPRT is a global provider of online vehicle auction and remarketing services, focused primarily on the sale of salvage and clean-title vehicles. The company operates a technology-driven auction platform that connects sellers — including insurance companies, vehicle finance firms, rental car companies, dealerships and fleet owners — with a broad buyer base consisting of vehicle dismantlers, recyclers, rebuilders and retail buyers. Copart's business model centers on efficient vehicle disposition using digital bidding and logistics services to maximize recovery value for its clients.

Core services include hosting live and timed online auctions, vehicle listing and inspection support, title processing, and transportation and storage solutions.

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