Waverly Advisors LLC Reduces Position in Copart, Inc. $CPRT

Key Points

• Waverly Advisors cut its Copart stake by 69.1% in the second quarter, selling 134,664 shares and retaining 60,104 shares valued at approximately $1.69 million. Institutional investors still own 85.78% of Copart’s outstanding stock.
• Copart’s latest quarterly revenue rose 2.4% year over year to $1.15 billion, slightly exceeding estimates, but EPS of $0.35 missed consensus and declined from $0.41 a year earlier.
• Analyst sentiment remains moderately positive, with an average price target of $37.57, while Copart’s proposed $1.9 billion acquisition of ACV Auctions could expand its vehicle-remarketing market but carries execution and closing risks.

Waverly Advisors LLC decreased its holdings in Copart, Inc. (NASDAQ:CPRT - Free Report) by 69.1% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 60,104 shares of the business services provider's stock after selling 134,664 shares during the period. Waverly Advisors LLC's holdings in Copart were worth $1,694,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the business. Empirical Finance LLC boosted its holdings in shares of Copart by 3.7% during the 2nd quarter. Empirical Finance LLC now owns 29,396 shares of the business services provider's stock worth $829,000 after purchasing an additional 1,056 shares during the last quarter. Nykredit A S acquired a new stake in shares of Copart in the second quarter valued at approximately $8,049,000. Parkside Financial Bank & Trust boosted its stake in Copart by 708.8% during the second quarter. Parkside Financial Bank & Trust now owns 19,105 shares of the business services provider's stock worth $539,000 after buying an additional 16,743 shares during the last quarter. Second Line Capital LLC boosted its stake in Copart by 46.5% during the second quarter. Second Line Capital LLC now owns 106,235 shares of the business services provider's stock worth $2,995,000 after buying an additional 33,716 shares during the last quarter. Finally, Brown Lisle Cummings Inc. boosted its stake in Copart by 24,634.9% during the second quarter. Brown Lisle Cummings Inc. now owns 15,583 shares of the business services provider's stock worth $439,000 after buying an additional 15,520 shares during the last quarter. 85.78% of the stock is owned by hedge funds and other institutional investors.

Copart Price Performance

CPRT stock opened at $29.95 on Monday. The business has a fifty day moving average of $30.35 and a two-hundred day moving average of $32.05. The stock has a market cap of $27.73 billion, a price-to-earnings ratio of 19.32, a price-to-earnings-growth ratio of 1.43 and a beta of 1.03. Copart, Inc. has a 52-week low of $26.81 and a 52-week high of $48.96.

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

Wall Street Analysts Forecast Growth

CPRT has been the subject of a number of recent research reports. Freedom Capital raised Copart to a "strong-buy" rating in a research note on Friday, June 26th. Barrington Research raised shares of Copart from a "market perform" rating to an "outperform" rating and set a $40.00 price target on the stock in a research report on Friday. JPMorgan Chase & Co. raised shares of Copart from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $32.00 to $40.00 in a report on Thursday, September 3rd. Zacks Research upgraded shares of Copart from a "strong sell" rating to a "hold" rating in a research report on Monday, September 7th. Finally, Barclays set a $25.00 target price on shares of Copart and gave the stock an "underweight" rating in a research note on Wednesday, August 26th. Two research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $37.57.

Copart News Roundup

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

Insider Buying and Selling

In other Copart news, CEO Jeffrey Liaw sold 27,745 shares of the stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $30.49, for a total transaction of $845,945.05. Following the completion of the transaction, the chief executive officer owned 99,641 shares of the company's stock, 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 filing with the SEC, which is available through the SEC website. 9.60% of the stock is owned by insiders.

Copart Profile

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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