Tidal Investments LLC Lowers Stake in Copart, Inc. $CPRT

Key Points

• Tidal Investments reduced its Copart stake by 27.4% in the second quarter, selling 60,187 shares and retaining 159,328 shares valued at approximately $4.5 million. Institutional investors collectively own 85.78% of Copart.
• Copart’s latest quarterly revenue rose 2.4% year over year to $1.15 billion, slightly exceeding estimates, but EPS came in at $0.35 versus the $0.38 consensus and declined from $0.41 a year earlier.
• Copart’s planned $1.9 billion acquisition of ACV Auctions is expected to expand its vehicle remarketing business, though deal scrutiny and execution risks remain. Analysts maintain a “Moderate Buy” consensus with an average price target of $37.57.

Tidal Investments LLC cut its holdings in shares of Copart, Inc. (NASDAQ:CPRT - Free Report) by 27.4% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 159,328 shares of the business services provider's stock after selling 60,187 shares during the period. Tidal Investments LLC's holdings in Copart were worth $4,491,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. Janney Montgomery Scott LLC raised its position in shares of Copart by 14.0% during the 1st quarter. Janney Montgomery Scott LLC now owns 333,624 shares of the business services provider's stock worth $11,076,000 after purchasing an additional 41,060 shares during the last quarter. Handelsbanken Fonder AB boosted its holdings in Copart by 6.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 578,452 shares of the business services provider's stock worth $16,307,000 after buying an additional 34,855 shares during the last quarter. Focus Partners Advisor Solutions LLC acquired a new stake in Copart in the 2nd quarter worth about $1,298,000. Mill Capital Management LLC purchased a new stake in Copart during the 2nd quarter worth approximately $12,711,000. Finally, Barbara Oil Co. acquired a new position in shares of Copart during the second quarter valued at approximately $1,585,000. Hedge funds and other institutional investors own 85.78% of the company's stock.

Copart Price Performance

Shares of Copart stock opened at $29.95 on Monday. The stock has a market cap of $27.73 billion, a P/E ratio of 19.32, a P/E/G ratio of 1.43 and a beta of 1.03. The stock's 50 day simple moving average is $30.35 and its 200-day simple moving average is $32.05. Copart, Inc. has a 1-year low of $26.81 and a 1-year high of $48.96.

Copart (NASDAQ:CPRT - Get Free Report) last posted its quarterly earnings results on Thursday, September 10th. The business services provider reported $0.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.38 by ($0.03). Copart had a net margin of 31.81% and a return on equity of 15.93%. The company had revenue of $1.15 billion during the quarter, compared to analysts' expectations of $1.14 billion. During the same quarter last year, the company earned $0.41 earnings per share. Copart's revenue for the quarter was up 2.4% on a year-over-year basis. As a group, research analysts expect that Copart, Inc. will post 1.67 EPS for the current fiscal year.

Insider Transactions at Copart

In other Copart news, CEO Jeffrey Liaw sold 27,745 shares of the company'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 sale, the chief executive officer directly owned 99,641 shares in the company, valued at $3,038,054.09. This represents a 21.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 9.60% of the stock is currently owned by insiders.

Trending Headlines about Copart

Here are the key news stories impacting Copart this week:

• Positive Sentiment: ACV acquisition expands Copart’s addressable market. Copart agreed to acquire ACV Auctions for $10.50 per share in cash, valuing the transaction at approximately $1.9 billion. The deal adds dealer-to-dealer wholesale auctions, vehicle inspection and valuation tools, and automotive data capabilities to Copart’s salvage-auction platform. Management expects the transaction to be earnings-neutral initially and accretive beginning in fiscal 2028. Copart to Acquire ACV, Expanding Position Across the Vehicle Remarketing Ecosystem
• Positive Sentiment: Analyst support improved. Barrington Research upgraded CPRT to “outperform” with a $40 price target, signaling confidence that the ACV combination and Copart’s long-term growth prospects can outweigh near-term challenges. This Copart Analyst Turns Bullish
• Neutral Sentiment: Revenue exceeded expectations, but growth remained modest. Fiscal fourth-quarter revenue rose 2.4% year over year to $1.15 billion, slightly above the $1.14 billion consensus estimate. Vehicle sales increased 8.3%, partially offsetting only 1.4% growth in service revenue. Copart Q4 Revenue Rises 2.4% to $1.15 Billion
• Negative Sentiment: Profitability missed forecasts and declined year over year. Quarterly EPS was $0.35, below the $0.38–$0.39 analyst consensus and down from $0.41 a year earlier. Net income fell 17.4%, gross profit declined 5.5%, and fiscal-year EPS decreased to $1.55 from $1.59. Copart Inc. Lags Q4 Earnings Estimates
• Negative Sentiment: ACV deal scrutiny introduces execution and closing risk. A law firm announced an investigation into whether ACV’s board obtained fair value and conducted an adequate sale process. Separately, Baird lowered its CPRT price target to $38, although it maintained an “outperform” rating. Shareholder Notice Regarding ACV Auctions

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on CPRT shares. Weiss Ratings restated a "sell (d+)" rating on shares of Copart in a research report on Wednesday, July 29th. Jefferies Financial Group set a $45.00 price objective on Copart in a research note on Friday, May 22nd. Stephens restated an "equal weight" rating and issued a $35.00 price objective on shares of Copart in a report on Thursday, August 20th. Barrington Research raised shares of Copart from a "market perform" rating to an "outperform" rating and set a $40.00 target price on the stock in a research note on Friday. Finally, Barclays set a $25.00 target price on shares of Copart and gave the stock an "underweight" rating in a report on Wednesday, August 26th. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $37.57.

About Copart

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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