Copart (NASDAQ:CPRT) Shares Gap Up Following Analyst Upgrade

Key Points

• Analyst upgrade lifted Copart shares. Barrington Research upgraded the stock to “outperform” from “market perform” and set a $40 price target, prompting shares to open at $32.01 versus a prior close of $30.75.
• Quarterly results were mixed. Revenue rose 2.4% year over year to $1.15 billion, beating estimates, but adjusted EPS of $0.35 missed expectations and net income fell 17.4% to $327.4 million.
• The planned ACV Auctions acquisition offers a longer-term growth opportunity. Copart will acquire the digital automotive marketplace for approximately $1.9 billion; management expects the deal to be earnings-neutral initially and accretive beginning in fiscal 2028.

Copart, Inc. (NASDAQ:CPRT - Get Free Report)'s share price gapped up prior to trading on Friday after Barrington Research upgraded the stock from a market perform rating to an outperform rating. The stock had previously closed at $30.75, but opened at $32.01. Barrington Research now has a $40.00 price target on the stock. Copart shares last traded at $30.5220, with a volume of 4,096,388 shares.

Other equities research analysts also recently issued research reports about the company. Stephens reiterated an "equal weight" rating and set a $35.00 price target on shares of Copart in a report on Thursday, August 20th. Robert W. Baird cut their price objective on shares of Copart from $42.00 to $38.00 and set an "outperform" rating on the stock in a report on Friday. Zacks Research upgraded shares of Copart from a "strong sell" rating to a "hold" rating in a research note on Monday. Jefferies Financial Group set a $45.00 target price on shares of Copart in a report on Friday, May 22nd. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Copart in a research report on Wednesday, July 29th. Two equities research analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $37.57.

Insider Transactions at Copart

In other news, CEO Jeffrey Liaw sold 27,745 shares of the firm's stock in a transaction 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 completion of the sale, the chief executive officer directly owned 99,641 shares of the company's stock, valued at $3,038,054.09. This trade represents a 21.78% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 9.60% of the stock is owned by company insiders.

Key Stories Impacting 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 digital automotive marketplace at approximately $1.9 billion. The deal adds dealer-to-dealer auctions, vehicle inspections, valuation tools, and pricing data to Copart’s salvage-auction business. Management expects the transaction to be earnings-neutral initially and accretive beginning in fiscal 2028. Copart to Acquire ACV
• Positive Sentiment: Revenue exceeded expectations. Fiscal fourth-quarter revenue rose 2.4% year over year to $1.15 billion, ahead of the $1.14 billion consensus estimate. Vehicle sales increased 8.3% to $182.9 million, while the ACV transaction is being positioned as a longer-term growth catalyst. Why Is Copart Stock Gaining Friday?
• Positive Sentiment: Analyst sentiment remains favorable. Barrington Research upgraded CPRT from “market perform” to “outperform” with a $40 price target. Robert W. Baird retained an “outperform” rating and set a $38 target, despite lowering its previous target from $42.
• Neutral Sentiment: The strategic rationale is positive but execution remains ahead. Copart plans to fund the acquisition with cash on hand, and meaningful earnings accretion is not expected until fiscal 2028, leaving investors focused on integration and the near-term financial impact.
• Negative Sentiment: Profitability disappointed. Adjusted earnings of $0.35 per share missed the $0.38–$0.39 consensus range and fell from $0.41 a year earlier. Net income declined 17.4% to $327.4 million, gross profit fell 5.5%, and full-year earnings per share decreased to $1.55 from $1.59. Copart Lags Q4 Earnings Estimates

Institutional Trading of Copart

A number of large investors have recently added to or reduced their stakes in CPRT. C M Bidwell & Associates Ltd. bought a new position in shares of Copart during the 2nd quarter valued at approximately $25,000. Versant Capital Management Inc grew its holdings in Copart by 110.9% during the second quarter. Versant Capital Management Inc now owns 947 shares of the business services provider's stock valued at $27,000 after purchasing an additional 498 shares during the period. Cache Advisors LLC purchased a new stake in Copart in the first quarter worth $31,000. Compass Financial Management LLC purchased a new stake in Copart in the second quarter worth $33,000. Finally, Reflection Asset Management bought a new stake in shares of Copart in the fourth quarter valued at $34,000. Hedge funds and other institutional investors own 85.78% of the company's stock.

Copart Price Performance

The company has a 50 day simple moving average of $30.35 and a 200-day simple moving average of $32.08. The stock has a market capitalization of $28.35 billion, a P/E ratio of 19.03, a price-to-earnings-growth ratio of 1.53 and a beta of 1.03.

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 for the quarter, missing the consensus estimate of $0.38 by ($0.03). Copart had a return on equity of 16.63% and a net margin of 33.48%.The firm had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.14 billion. During the same quarter in the previous year, the company posted $0.41 EPS. The firm's revenue was up 2.4% compared to the same quarter last year. As a group, equities analysts forecast that Copart, Inc. will post 1.58 earnings per share for the current fiscal year.

Copart Company 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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