Cynosure Group LLC has significantly reduced its stake in Copart, Inc. (NASDAQ: CPRT) by 50.6% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission, the investment firm now holds 17,734 shares of the online vehicle auction company after selling 18,198 shares in this period. The remaining shares are valued at approximately $797,000 as of the end of September.
Other institutional investors have also adjusted their positions in Copart. For instance, Stephens Inc. AR increased its stake by 0.7% during the second quarter, acquiring an additional 218 shares to bring its total to 30,312 shares, valued at $1,487,000. Similarly, Allworth Financial LP raised its holdings by 0.8%, increasing its total to 28,978 shares worth $1,422,000. Blue Trust Inc. reported a more substantial increase, raising its stake in Copart by 15.4% to 1,742 shares, now valued at $85,000.
PDS Planning Inc. and Unique Wealth LLC also made modest increases in their holdings, with PDS Planning lifting its stake by 4.9% to 5,196 shares valued at $234,000, and Unique Wealth growing its position by 2.3% to 10,785 shares, worth $485,000. Currently, institutional investors own approximately 85.78% of Copart’s stock.
Analyst Ratings and Company Performance
Copart has recently garnered attention in the analyst community. Weiss Ratings maintained a “hold (c)” rating for the stock in an October report, while CJS Securities upgraded it to a “strong-buy” rating on December 11, 2023. Barclays issued an “underweight” rating but raised its target price from $32.00 to $33.00. Conversely, JPMorgan Chase & Co. lowered its price target from $50.00 to $45.00 and rated the stock as “neutral.” Robert W. Baird also adjusted its price objective down from $55.00 to $52.00, maintaining an “outperform” rating. Overall, Copart has a consensus rating of “Moderate Buy” with a target price of $47.60, based on data from MarketBeat.com.
In terms of stock performance, shares of Copart opened at $37.77 on Monday, reflecting a market capitalization of $36.56 billion. The stock’s price-to-earnings ratio stands at 23.03, with a beta of 1.10. Over the past year, Copart has seen a low of $37.60 and a high of $63.85. Its moving averages are currently $40.11 for the 50-day and $44.43 for the 200-day periods.
Copart’s latest quarterly earnings report, released on November 20, 2023, revealed an earnings per share (EPS) of $0.41, surpassing analysts’ expectations of $0.39. The company reported revenue of $1.16 billion for the quarter, slightly below consensus estimates of $1.18 billion. Copart recorded a return on equity of 17.78% and a net margin of 34.24%. Compared to the previous year, the company’s quarterly revenue increased by 0.7%, compared to an EPS of $0.37 in the same quarter last year. Analysts predict that Copart will post an EPS of $1.57 for the current fiscal year.
Insider Transactions
In related insider news, CEO Jeffrey Liaw sold 24,283 shares of Copart on October 15, 2023, at an average price of $44.79, amounting to a total sale value of $1,087,635.57. Following this transaction, Liaw retains 31,332 shares in the company, valued at approximately $1,403,360.28. This sale represents a significant 43.66% reduction in his position.
Additionally, Director Thomas N. Tryforos offloaded 100,000 shares on November 25, 2023, selling them at an average of $39.07, resulting in proceeds of $3,907,000.00. The details of these transactions have been filed with the SEC and are publicly accessible.
Copart, Inc. operates as a global leader in online vehicle auction and remarketing services, primarily focusing on the sale of salvage and clean-title vehicles. The company utilizes a technology-driven auction platform that connects sellers—including insurance firms, vehicle finance companies, rental car agencies, and dealerships—with a diverse buyer base ranging from dismantlers to retail buyers. Copart’s business strategy emphasizes efficient vehicle disposition through digital bidding and logistics to maximize recovery value for clients. Core services include live and timed online auctions, vehicle listings, title processing, and transportation services.
As Copart navigates these changes and market dynamics, both investors and analysts will be closely monitoring its performance and strategic decisions moving forward.
