Copart (NASDAQ:CPRT) Stock Price Up 6.7% - Should You Buy?

Key Points

• Copart shares rose 6.7% to about $31.36, although trading volume was 64% below the daily average. The stock remains below its 200-day moving average of $32.98.
• Analyst sentiment is mixed but averages to a “Hold” rating, with a consensus price target of $43.50. Ratings range from “Strong Buy” to “Strong Sell,” highlighting significant disagreement about the stock’s outlook.
• Copart exceeded quarterly expectations, reporting $0.43 EPS versus $0.41 expected and $1.24 billion in revenue, up 2.1% year over year. However, CEO Jeffrey Liaw sold 27,745 shares, while institutional investors own 85.78% of the company.

Copart, Inc. (NASDAQ:CPRT - Get Free Report) was up 6.7% on Friday . The company traded as high as $31.15 and last traded at $31.3550. Approximately 3,665,264 shares traded hands during trading, a decline of 64% from the average daily volume of 10,085,899 shares. The stock had previously closed at $29.39.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Weiss Ratings reiterated a "sell (d+)" rating on shares of Copart in a research note on Wednesday, July 29th. Zacks Research cut shares of Copart from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 28th. Barclays set a $26.00 price objective on shares of Copart and gave the stock an "underweight" rating in a research report on Tuesday, July 21st. Freedom Capital raised shares of Copart to a "strong-buy" rating in a research report on Friday, June 26th. Finally, Jefferies Financial Group set a $45.00 target price on shares of Copart in a research note on Friday, May 22nd. Three research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $43.50.

Copart Trading Up 7.0%

The company has a market cap of $29.10 billion, a PE ratio of 19.52 and a beta of 1.01. The firm's 50-day simple moving average is $29.28 and its two-hundred day simple moving average is $32.98.

Copart (NASDAQ:CPRT - Get Free Report) last posted its quarterly earnings results on Thursday, May 21st. The business services provider reported $0.43 earnings per share (EPS) for the quarter, topping 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 business had revenue of $1.24 billion during the quarter, compared to analysts' expectations of $1.19 billion. During the same quarter last year, the company posted $0.42 earnings per share. The business's quarterly revenue was up 2.1% on a year-over-year basis. As a group, analysts predict that Copart, Inc. will post 1.58 EPS 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 dated 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 directly 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 document filed with the SEC, which is available through the SEC website. Corporate insiders own 9.60% of the company's stock.

Hedge Funds Weigh In On Copart

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Brighton Jones LLC boosted its holdings in shares of Copart by 92.1% in the 4th quarter. Brighton Jones LLC now owns 14,215 shares of the business services provider's stock valued at $816,000 after acquiring an additional 6,817 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Copart by 365.8% during the first quarter. Geneos Wealth Management Inc. now owns 1,118 shares of the business services provider's stock worth $63,000 after purchasing an additional 878 shares during the last quarter. Jump Financial LLC acquired a new position in Copart during the second quarter valued at $2,677,000. Sei Investments Co. grew its position in Copart by 110.0% during the 2nd quarter. Sei Investments Co. now owns 900,330 shares of the business services provider's stock worth $44,179,000 after purchasing an additional 471,571 shares during the period. Finally, Treasurer of the State of North Carolina grew its position in Copart by 3.5% during the 2nd quarter. Treasurer of the State of North Carolina now owns 413,083 shares of the business services provider's stock worth $20,270,000 after purchasing an additional 13,860 shares during the period. Institutional investors and hedge funds 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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