Copart (NASDAQ:CPRT) Sets New 52-Week Low - Here's Why

Key Points

• Copart (NASDAQ: CPRT) hit a new 52-week low, falling to as low as $27.83 during Thursday trading and closing near $27.86, well below its prior close of $28.59.
• Despite the stock weakness, Copart recently reported better-than-expected quarterly results, posting $0.43 EPS versus $0.41 expected and revenue of $1.24 billion versus $1.19 billion expected.
• Wall Street sentiment is mixed but still leans positive overall, with a Moderate Buy consensus rating and an average price target of $44.50, even as some analysts have downgraded the stock.

Copart, Inc. (NASDAQ:CPRT - Get Free Report) reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $27.83 and last traded at $27.8560, with a volume of 3265072 shares changing hands. The stock had previously closed at $28.59.

Analysts Set New Price Targets

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

Copart Price Performance

The stock has a market capitalization of $25.94 billion, a PE ratio of 17.40 and a beta of 1.02. The stock's fifty day moving average is $31.53 and its 200-day moving average is $35.01.

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

Insiders Place Their Bets

In related news, CEO Jeffrey Liaw sold 26,213 shares of Copart stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $33.18, for a total value of $869,747.34. Following the sale, the chief executive officer owned 79,532 shares of the company's stock, valued at approximately $2,638,871.76. This trade represents a 24.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 9.60% of the company's stock.

Institutional Investors Weigh In On Copart

A number of large investors have recently modified their holdings of CPRT. State Street Corp boosted its position in Copart by 1.3% during the fourth quarter. State Street Corp now owns 37,555,437 shares of the business services provider's stock worth $1,470,295,000 after acquiring an additional 492,506 shares during the last quarter. Capital World Investors raised its holdings in Copart by 25.1% in the 4th quarter. Capital World Investors now owns 27,728,398 shares of the business services provider's stock valued at $1,085,588,000 after acquiring an additional 5,555,101 shares during the last quarter. Geode Capital Management LLC lifted its stake in Copart by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 23,255,161 shares of the business services provider's stock worth $906,836,000 after purchasing an additional 131,703 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in shares of Copart by 21.7% during the 4th quarter. Bank of New York Mellon Corp now owns 21,982,589 shares of the business services provider's stock worth $860,618,000 after purchasing an additional 3,918,610 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Copart during the 4th quarter worth approximately $569,569,000. 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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