Copart (NASDAQ:CPRT) Reaches New 52-Week Low - Should You Sell?

Key Points

• Copart shares hit a new 52-week low of $26.36 and last traded near $26.21, below their 50-day and 200-day moving averages.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $37.80, despite two sell ratings.
• Copart’s latest quarterly revenue rose 2.4% year over year to $1.15 billion but earnings per share missed estimates, coming in at $0.35 versus the $0.38 consensus.

Copart, Inc. (NASDAQ:CPRT - Get Free Report) reached a new 52-week low on Tuesday. The company traded as low as $26.36 and last traded at $26.2070, with a volume of 505,201 shares changing hands. The stock had previously closed at $26.48.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Zacks Research raised Copart from a "strong sell" rating to a "hold" rating in a report on Monday, September 7th. Barrington Research raised Copart from a "market perform" rating to an "outperform" rating and set a $40.00 price target on the stock in a research note on Friday, September 11th. Freedom Capital upgraded Copart to a "strong-buy" rating in a research report on Friday, June 26th. Stephens reiterated an "equal weight" rating and set a $35.00 price objective on shares of Copart in a research note on Thursday, August 20th. Finally, Deutsche Bank Aktiengesellschaft set a $40.00 price objective on Copart in a research note on Thursday, September 3rd. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $37.80.

Copart Stock Down 0.5%

The stock has a market capitalization of $24.39 billion, a price-to-earnings ratio of 16.97, a price-to-earnings-growth ratio of 1.34 and a beta of 1.06. The stock's 50-day simple moving average is $30.27 and its 200 day simple moving average is $30.96.

Copart (NASDAQ:CPRT - Get Free Report) last posted its quarterly earnings data on Thursday, September 10th. The business services provider reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.38 by ($0.03). Copart had a return on equity of 15.93% and a net margin of 31.81%. The firm had revenue of $1.15 billion for the quarter, compared to analyst estimates of $1.14 billion. During the same period in the previous year, the business posted $0.41 EPS. The business's quarterly revenue was up 2.4% on a year-over-year basis. As a group, equities research analysts anticipate that Copart, Inc. will post 1.63 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Jeffrey Liaw sold 27,745 shares of the stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $30.49, for a total transaction of $845,945.05. Following 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 9.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Copart

A number of institutional investors and hedge funds have recently bought and sold shares of CPRT. NorthCrest Asset Manangement LLC grew its holdings in shares of Copart by 1,102.2% during the third quarter. NorthCrest Asset Manangement LLC now owns 184,823 shares of the business services provider's stock worth $5,042,000 after purchasing an additional 169,449 shares during the last quarter. Armstrong Advisory Group Inc. raised its holdings in shares of Copart by 2.5% in the third quarter. Armstrong Advisory Group Inc. now owns 106,755 shares of the business services provider's stock valued at $2,912,000 after buying an additional 2,560 shares during the last quarter. Gilpin Wealth Management LLC bought a new position in shares of Copart in the third quarter valued at about $122,000. Tilia Fiduciary Partners Inc. raised its holdings in shares of Copart by 12.9% in the third quarter. Tilia Fiduciary Partners Inc. now owns 80,013 shares of the business services provider's stock valued at $2,183,000 after buying an additional 9,157 shares during the last quarter. Finally, Atlas Brown Inc. acquired a new position in Copart during the 3rd quarter worth about $265,000. Institutional investors and hedge funds own 85.78% of the company's stock.

About Copart

Copart, Inc is a global provider of online vehicle auction and remarketing services. The company primarily sells vehicles that have been damaged, totaled, recovered from theft, or otherwise deemed uneconomical to repair. Its customers include insurance companies, automobile dealers, dismantlers, rebuilders, exporters, rental and finance companies, and members of the general public.

Copart conducts auctions through its online VB3 platform, which connects buyers with vehicles listed at the company's facilities.

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