Stock Traders Buy High Volume of Put Options on Copart (NASDAQ:CPRT)

Key Points

• Unusual bearish options activity: Investors bought 12,791 Copart put options, about 381% above the average volume of 2,662 contracts.
• Shares rose 6.7% to $31.36, while Copart reported quarterly EPS and revenue above analyst expectations. Revenue increased 2.1% year over year, and analysts expect full-year EPS of $1.58.
• Analyst sentiment remains mixed: Copart has an average rating of “Hold” and a consensus price target of $43.50, while recent ratings range from “Strong Buy” to “Strong Sell.” CEO Jeffrey Liaw also sold 27,745 shares, and institutional investors own 85.78% of the stock.

Copart, Inc. (NASDAQ:CPRT - Get Free Report) was the target of some unusual options trading activity on Friday. Investors acquired 12,791 put options on the stock. This is an increase of approximately 381% compared to the average volume of 2,662 put options.

Copart Trading Up 6.7%

Shares of CPRT traded up $1.97 during mid-day trading on Friday, reaching $31.36. The company's stock had a trading volume of 8,478,817 shares, compared to its average volume of 10,119,869. The stock has a market cap of $29.04 billion, a PE ratio of 19.47 and a beta of 1.01. Copart has a 52 week low of $26.81 and a 52 week high of $50.11. The company's fifty day moving average price is $29.28 and its two-hundred day moving average price is $32.98.

Copart (NASDAQ:CPRT - Get Free Report) last posted its quarterly earnings results on Thursday, May 21st. The business services provider reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.41 by $0.02. The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $1.19 billion. Copart had a return on equity of 16.63% and a net margin of 33.48%.Copart's revenue for the quarter was up 2.1% compared to the same quarter last year. During the same period last year, the company earned $0.42 EPS. Research analysts anticipate that Copart will post 1.58 EPS for the current year.

Wall Street Analysts Forecast Growth

CPRT has been the subject of several research analyst reports. Barclays set a $26.00 price target on shares of Copart and gave the stock an "underweight" rating in a research note on Tuesday, July 21st. Jefferies Financial Group set a $45.00 price target on Copart in a research report on Friday, May 22nd. Freedom Capital upgraded shares of Copart to a "strong-buy" rating in a research report on Friday, June 26th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Copart in a research note on Wednesday, July 29th. Finally, Zacks Research lowered shares of Copart from a "hold" rating to a "strong sell" rating in a report on Tuesday, July 28th. Three investment analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, Copart presently has an average rating of "Hold" and a consensus price target of $43.50.

Insider Activity at Copart

In related news, CEO Jeffrey Liaw sold 27,745 shares of the firm's 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 transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 9.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of Copart during the second quarter valued at approximately $1,908,980,000. State Street Corp grew its holdings in shares of Copart by 1.3% in the fourth quarter. State Street Corp now owns 37,555,437 shares of the business services provider's stock worth $1,470,295,000 after acquiring an additional 492,506 shares during the period. Capital World Investors boosted its stake in shares of Copart by 25.1% during the 4th quarter. Capital World Investors now owns 27,728,398 shares of the business services provider's stock worth $1,085,588,000 after acquiring an additional 5,555,101 shares during the last quarter. Geode Capital Management LLC increased its holdings in Copart by 0.6% in the 4th quarter. Geode Capital Management LLC now owns 23,255,161 shares of the business services provider's stock worth $906,836,000 after acquiring an additional 131,703 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its position in shares of Copart by 21.7% in the fourth quarter. Bank of New York Mellon Corp now owns 21,982,589 shares of the business services provider's stock valued at $860,618,000 after acquiring an additional 3,918,610 shares in the last quarter. 85.78% of the stock is owned by hedge funds and other institutional investors.

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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