Capital World Investors Cuts Stake in Copart, Inc. $CPRT

Key Points

• Capital World Investors trimmed its Copart stake by 1.2%, selling 271,684 shares and ending the quarter with 22,173,297 shares (about 2.29% of the company) valued at roughly $997.1 million.
• CEO Jeffrey Liaw sold 25,137 shares on January 15 for about $1.01 million, reducing his holding by ~31% to 55,970 shares; insiders own 9.6% of Copart while institutional investors hold about 85.78%.
• Copart reported an earnings miss (Q EPS $0.36 vs. $0.39 expected) and revenue of $1.12 billion (down 3.6% YoY), and carries a consensus analyst rating of "Hold" with a $44.40 price target amid mixed broker actions.

Capital World Investors lessened its holdings in shares of Copart, Inc. (NASDAQ:CPRT - Free Report) by 1.2% in the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 22,173,297 shares of the business services provider's stock after selling 271,684 shares during the quarter. Capital World Investors owned about 2.29% of Copart worth $997,109,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Capital International Sarl grew its stake in Copart by 4.0% during the third quarter. Capital International Sarl now owns 458,525 shares of the business services provider's stock valued at $20,620,000 after acquiring an additional 17,696 shares in the last quarter. Capital International Inc. CA boosted its holdings in Copart by 13.7% in the 3rd quarter. Capital International Inc. CA now owns 284,752 shares of the business services provider's stock valued at $12,805,000 after purchasing an additional 34,279 shares during the period. Bank of Montreal Can increased its holdings in shares of Copart by 28.6% in the third quarter. Bank of Montreal Can now owns 1,608,882 shares of the business services provider's stock worth $72,351,000 after purchasing an additional 357,650 shares during the period. Legal & General Group Plc raised its position in shares of Copart by 5.1% in the third quarter. Legal & General Group Plc now owns 5,749,271 shares of the business services provider's stock worth $258,545,000 after buying an additional 276,586 shares in the last quarter. Finally, Banque Cantonale Vaudoise boosted its stake in Copart by 52.9% during the third quarter. Banque Cantonale Vaudoise now owns 16,418 shares of the business services provider's stock valued at $738,000 after buying an additional 5,680 shares during the period. 85.78% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on CPRT. Barclays reaffirmed an "underweight" rating and issued a $32.00 target price (down from $33.00) on shares of Copart in a research note on Monday, February 23rd. Robert W. Baird set a $48.00 price target on shares of Copart and gave the stock an "outperform" rating in a report on Friday, February 20th. JPMorgan Chase & Co. dropped their price objective on shares of Copart from $45.00 to $34.00 and set a "neutral" rating for the company in a report on Monday, February 23rd. CJS Securities upgraded shares of Copart to a "strong-buy" rating in a research report on Thursday, December 11th. Finally, Zacks Research cut Copart from a "hold" rating to a "strong sell" rating in a research note on Tuesday, February 24th. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $44.40.

Insider Transactions at Copart

In related news, CEO Jeffrey Liaw sold 25,137 shares of the business's stock in a transaction that occurred on Thursday, January 15th. The stock was sold at an average price of $40.17, for a total value of $1,009,753.29. Following the transaction, the chief executive officer directly owned 55,970 shares of the company's stock, valued at approximately $2,248,314.90. The trade was a 30.99% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 9.60% of the company's stock.

Copart Stock Performance

Shares of NASDAQ:CPRT opened at $36.31 on Wednesday. Copart, Inc. has a 52-week low of $33.81 and a 52-week high of $63.85. The firm has a market capitalization of $34.98 billion, a P/E ratio of 22.69 and a beta of 1.09. The stock has a 50 day moving average price of $38.96 and a 200-day moving average price of $41.67.

Copart (NASDAQ:CPRT - Get Free Report) last posted its quarterly earnings results on Thursday, February 19th. The business services provider reported $0.36 EPS for the quarter, missing analysts' consensus estimates of $0.39 by ($0.03). Copart had a net margin of 33.76% and a return on equity of 16.68%. The firm had revenue of $1.12 billion for the quarter, compared to analysts' expectations of $1.15 billion. During the same quarter in the previous year, the company earned $0.40 EPS. The company's quarterly revenue was down 3.6% compared to the same quarter last year. On average, equities analysts forecast that Copart, Inc. will post 1.57 EPS for the current fiscal year.

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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