Copart, Inc. (CPRT) $27.52
Copart flirts with its 52-week lows, yet the lack of institutional conviction signals that the bottom remains elusive.
52-wk High $50.11
π Investment Snapshot
- Trading at $27.52, just pennies above the 52-week low.
- Latest quarterly revenue reached $1.24B with $0.43 EPS.
- Institutional liquidity sweeps provide minor support near $29.
- Consensus target sits at $40.90, implying 48% upside.
The stock currently tests critical support at $27.48. Wait for a confirmed volume-backed reversal before initiating a long position.
| π Entry Zone | $27.00 or below | π Stop-Loss | $26.50 |
| π Adjust If | Reclaim of $28.62 FVG zone with 1.5x volume | ||
The Investment Case β Why Now?
Copart remains a dominant force in online vehicle auctions, yet the current macro environment pressures margins. The stock has shed significant value over the last three months, reflecting broader industry headwinds and cooling demand.
While the valuation appears attractive relative to historical averages, the lack of technical support suggests further downside risk. Are you prepared to catch a falling knife, or will you wait for a structural trend shift?
π€ Are you prepared to catch a falling knife, or will you wait for a structural trend shift?
π’ Company Overview
| Detail | Value |
|---|---|
| Sector | Industrials |
| Industry | Specialty Business Services |
Open chart on TradingView β
π Price Action & Technicals
Dead Cross
Outside VA
Buy-side sweep at $29.41
The stock sits in a precarious position, trading well below both the 50-day ($31.43) and 200-day ($37.10) moving averages. This alignment confirms a strong bearish trend that shows no signs of exhaustion.
RSI at 35.6 indicates the stock nears oversold territory, yet it lacks the conviction of a sub-30 reading. The MACD remains negative, underscoring the lack of bullish momentum.
Volume profile analysis reveals the Point of Control at $33.01, meaning the current price trades deep within a low-volume zone. This lack of historical volume support makes the current level fragile.
Liquidity sweeps at the $29β$30 level failed to hold, suggesting that institutional buyers do not yet defend this price floor.
Historical patterns indicate that without a reclaim of the $28.62 FVG zone, the path of least resistance remains lower.
π€ Does the lack of institutional defense at the $29 level change your long-term outlook on the stock?
β Peer P/E Comparison
| Ticker | Company | P/E (TTM) |
|---|---|---|
| CPRT | Copart, Inc. | 17.1x |
| SPY | S&P 500 | 21.5x |
π° Earnings Deep Dive
| Period | Revenue | EPS | YoY |
|---|---|---|---|
| Q2 2026 | $1.24B | $0.43 | +X% |
| Q1 2026 | $1.12B | $0.36 | +X% |
| Q4 2025 | $1.16B | $0.41 | +X% |
| Q3 2025 | $1.12B | $0.40 | +X% |
Free cash flow remains robust at $0.5B, supporting aggressive buybacks of $1.4B.
Earnings growth exhibits stability, yet the market currently discounts future performance due to macro pressures.
π Growth Drivers β What Moves the Stock
- Global Auction Expansion π’ Upside Surprise β Scaling digital platforms into emerging markets.
- Salvage Volume π‘ Priced In β Rising accident rates drive inventory growth.
π€ Which growth driver do you believe holds more weight in the current market environment?
π¦ Smart Money & Institutional Positioning
13F Holdings
| Institution | Shares (K) |
|---|---|
| Blackrock Inc. | 63,326 |
| Vanguard Capital | 57,275 |
Holdings reflect most recent 13F (45-day lag).
Insider Transactions
| Name | Title | Date | Type | Shares |
|---|---|---|---|---|
| LIAW JEFFREY | CEO | 2026-04-15 | Sale | 49,775 |
Short Interest
| Short % Float | Days to Cover |
|---|---|
| 5.3% | 3.0 |
β Key Risk Factors
~$1B impact
~$0.5B impact
π€ Given the macro risks, do you prioritize dividend yield or capital appreciation for this sector?
π― Guidance & Wall Street View
| High Target | Mean Target | Low Target | Analysts | Consensus |
|---|---|---|---|---|
| $55.00 | $40.90 | $32.00 | 10 | Buy |
| Firm | Rating | Target | Date | Action |
|---|---|---|---|---|
| Freedom Broker | Buy | $N/A | 2026-06-26 | init |
Analysts remain bullish, yet the market price ignores these targets.
Open chart on TradingView β
π Bull vs Bear β Probability-Weighted Scenarios
π Bull Case
- Strong cash flow generation
- Dominant market share
π Base Case
Consolidation near current levels until macro conditions stabilize.
π» Bear Case
- Macro-driven margin compression
- Technical breakdown below $27
π― Investor Action Plan β By Profile
Avoid until price reclaims $28.62 with volume.
Accumulate only on a confirmed base-building pattern.
Monitor for better entry points as macro headwinds persist.
β Investor FAQ β People Also Ask
Q: Is Copart a buy at $27.52?
No. Technicals show a weak trend, and the stock lacks institutional support.
Q: What is the primary risk?
Macro-driven interest rate sensitivity and declining used car prices.
Q: When should I enter?
Wait for a reclaim of the $28.62 FVG zone with increased volume.
π New to these terms? P/E Ratio Β· Free Cash Flow Β· Insider Signals Β· Stop-Loss Β· RSI
π How has the stock moved since this analysis?
π Disclaimer
This analysis is for informational purposes only and does not constitute financial advice.
All active positions and their real-time performance are tracked on our Investment Log.
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