Copart, Inc. (CPRT) $32.64
Copart is currently trading at its 52-week low, a critical juncture that often precedes either a sharp rebound or further capitulation.
52-wk High $63.85
📌 Investment Snapshot
- 💰 Trading at $32.64 with a $31.6B market cap, reflecting a 20.5x TTM P/E.
- 📈 Latest quarter revenue hit $1.12B, with EPS reported at $0.36.
- 🔑 The stock is deeply oversold, currently touching its 52-week low.
- 🎯 Analysts maintain a “buy” consensus with a $42.67 mean target, implying 30.7% upside.
CPRT finds itself at a precarious technical crossroads, hugging its 52-week low with an RSI screaming oversold. However, the imminent earnings report and a weak technical confluence score inject significant uncertainty into the immediate outlook.
| 📍 Entry Zone | $32.20 or below | 🛑 Stop-Loss | $31.50 |
| 📋 Adjust If | CPRT closes above $34.00 on strong volume, signaling a potential reversal. | ||
The Investment Case — Why Now?
Copart has shed nearly 50% of its value from its 52-week high, bringing it to a pivotal support level near its annual low. This dramatic pullback, coupled with an RSI of 18.1, suggests the stock is technically oversold, potentially setting the stage for a bounce. The mean analyst target of $42.67 still implies a substantial 30% upside from current levels, indicating a disconnect between market price action and long-term analyst conviction.
The primary risk breaking this thesis is the company’s decelerating revenue growth and recent insider selling, which casts a shadow over its fundamental strength. Furthermore, the upcoming earnings announcement on March 31st introduces considerable event risk; a miss could easily push the stock into new lows, invalidating any immediate technical bounce.
🤔 Given the deep discount and oversold conditions, are you willing to stomach potential earnings volatility for a chance at a significant rebound?
🏢 Company Overview
| Detail | Value |
|---|---|
| Company | Copart, Inc. |
| Ticker / Exchange | CPRT / NYSE |
| Sector / Industry | Industrials / Specialty Business Services |
| CEO | Jeffrey Liaw |
| Founded / HQ |
📈 Price Action & Technicals
Outside VA
The most recent activity saw a sell-side sweep at $33.90 on March 26th, confirming bearish pressure.
Copart’s price action paints a grim picture, with the stock trading significantly below both its 50-day ($37.48) and 200-day ($42.64) simple moving averages. This alignment confirms a strong downtrend, with these key averages now acting as formidable resistance levels. The current price of $32.64 sits precariously close to its 52-week low of $32.20, a critical support zone.
The Relative Strength Index (RSI) at 18.1 screams deeply oversold, suggesting a potential for a technical bounce. However, the MACD shows a dead cross, reinforcing bearish momentum, while the ADX at 45.9 with a dominant -DI (42.5) confirms a strong, accelerating bearish trend. These conflicting signals create a complex technical landscape.
Volume Profile analysis reveals the Point of Control (POC) at $39.01, significantly above the current price, indicating that the majority of recent trading volume occurred at much higher levels. The stock is currently trading outside the Value Area, suggesting a lack of conviction from institutional players at these lower prices. The Anchored VWAP from March 19th at $32.98 also sits just above the current price, acting as immediate overhead resistance.
Volume is running at a mere 37% of its 20-day average, signaling extremely low participation as the stock grinds lower. This lack of buying interest, combined with recent sell-side liquidity sweeps, suggests that sellers remain in control. The Technical Confluence Score of 30/100 further underscores the weakness in technical alignment, with VWAP, Volume Profile, and FVG signals all pointing to continued downside risk or at best, a fragile bottom.
🤔 With RSI flashing oversold but ADX confirming a strong downtrend, which technical signal carries more weight for your short-term trading decisions?
⚖ Peer P/E Comparison
| Ticker | Company | P/E (TTM) |
|---|---|---|
| CPRT | Copart, Inc. | 20.5x |
| KAR | KAR Auction Services | 18.0x |
| IAA | IAA, Inc. | 22.0x |
| S&P 500 | Index Average | 21.0x |
💰 Earnings Deep Dive
| Period | Revenue | EPS | YoY |
|---|---|---|---|
| 2026-01-31 | $1.12B | $0.36 | |
| 2025-10-31 | $1.16B | $0.41 | |
| 2025-07-31 | $1.12B | $0.40 | |
| 2025-04-30 | $1.21B | $0.42 |
Copart reported a Free Cash Flow of $0.1 billion in its latest quarter, demonstrating its ability to generate cash despite recent revenue fluctuations. This provides some operational stability.
🚀 Growth Drivers — What Moves the Stock
- Market Dominance in Vehicle Auctions 🟡 Priced In — Copart maintains a leading position in the online vehicle auction industry, particularly for salvage and used vehicles. Its extensive global network and proprietary technology create significant barriers to entry, ensuring a durable competitive advantage.
- Digital Transformation & Efficiency 🟢 Upside Surprise — The company’s continued investment in digital platforms and logistics optimization enhances operational efficiency and expands its reach. This focus on technology drives margin improvement and customer stickiness, crucial for long-term growth.
- Insurance Industry Partnerships 🟢 Upside Surprise — Deep-rooted relationships with major insurance carriers provide a consistent supply of salvage vehicles. As vehicle technology advances and repair costs rise, more vehicles are deemed total losses, increasing Copart’s addressable market.
🤔 Can Copart’s technological edge and strong insurance partnerships truly offset the current macro headwinds and flat revenue growth?
🏦 Smart Money & Institutional Positioning
13F Holdings
| Institution | Shares (K) |
|---|---|
| Vanguard Group Inc | 108,666 |
| Blackrock Inc. | 63,777 |
| Principal Financial Group, Inc. | 38,993 |
| State Street Corporation | 37,555 |
| Capital World Investors | 27,728 |
| Geode Capital Management, LLC | 23,255 |
| Bank Of New York Mellon Corporation | 21,982 |
Holdings reflect most recent 13F (45-day lag).
Insider Transactions
| Name | Title | Date | Type | Shares |
|---|---|---|---|---|
| ADAIR AARON JAYSON | Officer and Director | Jan 20, 2026 | Sale | 50,161 |
| LIAW JEFFREY | Chief Executive Officer | Jan 15, 2026 | Sale | 25,137 |
| LIAW JEFFREY | Chief Executive Officer | Jan 15, 2026 | Sale | 49,775 |
| TRYFOROS THOMAS N | Director | Dec 30, 2025 | Sale | 27,850 |
Short Interest
| Short % Float | Days to Cover |
|---|---|
| 0.0% | 3.2 |
⚠ Key Risk Factors
~$500M revenue hit
~2-3% margin pressure
~10% EPS decline
~5% stock price drag
🤔 With significant insider selling and flat revenue, how confident are you in Copart’s ability to reignite growth in the near term?
🎯 Guidance & Wall Street View
| High Target | Mean Target | Low Target | Analysts | Consensus |
|---|---|---|---|---|
| $55.0 | $42.67 | $32.0 | 9 | buy |
| Firm | Rating | Target | Date | Action |
|---|---|---|---|---|
| JP Morgan | Neutral | $42.67 | Feb 2026 | main |
| Barclays | Underweight | $32.00 | Feb 2026 | main |
| Baird | Outperform | $55.00 | Feb 2026 | main |
| JP Morgan | Neutral | $42.67 | Nov 2025 | main |
| Barclays | Underweight | $32.00 | Nov 2025 | main |
| Baird | Outperform | $55.00 | Nov 2025 | main |
| Barclays | Underweight | $32.00 | Nov 2025 | init |
| Stephens & Co. | Equal-Weight | $42.67 | Sep 2025 | main |
Despite recent downgrades from some firms, the overall analyst consensus remains “Buy,” with a mean target implying over 30% upside. This suggests that while near-term concerns exist, many analysts still see long-term value in Copart.
📊 Bull vs Bear — Probability-Weighted Scenarios
🐂 Bull Case
- Deeply oversold RSI (18.1) at 52-week lows often precedes strong technical bounces.
- Strong market position and digital infrastructure provide a durable competitive moat.
📊 Base Case
Our base case assumes Copart continues to navigate a challenging macro environment, with revenue growth remaining flat in the near term. The stock will likely consolidate around current levels, with any significant upside contingent on a strong earnings beat or a broader market recovery.
🐻 Bear Case
- Continued insider selling and flat revenue growth erode investor confidence and fundamental support.
- A miss on upcoming earnings could trigger a breakdown below the 52-week low, leading to further capitulation.
🎯 Investor Action Plan — By Profile
Avoid initiating a swing trade before the March 31st earnings report; the volatility risk is too high. Wait for a confirmed close above $34.00 on above-average volume post-earnings for a potential short-term bounce, targeting $36.00 with a tight stop at $32.00.
Stay on the sidelines for now. While the current price is attractive, the lack of positive catalysts and upcoming earnings uncertainty warrant patience. Consider scaling into a position only if the stock holds $32.20 post-earnings and shows signs of accumulation.
Exercise patience. For long-term investors, the current valuation might seem appealing, but the flat revenue and insider selling are concerning. Await clarity from the upcoming earnings and observe if management outlines a clear strategy for reigniting growth before committing capital.
❓ Investor FAQ — People Also Ask
Q: Why is Copart’s stock price down so significantly from its 52-week high?
Copart has seen a nearly 50% decline from its peak, largely due to a combination of factors including broader market headwinds, flat revenue growth in recent quarters, and a series of insider sales that have dampened investor sentiment.
Q: Is the current low RSI (18.1) a reliable buy signal for CPRT?
While an RSI of 18.1 typically signals deeply oversold conditions and often precedes a bounce, it’s crucial to consider other factors. The strong bearish trend indicated by ADX and the weak Technical Confluence Score suggest that while a bounce is possible, it might be short-lived without fundamental catalysts.
Q: What should investors watch for in the upcoming earnings report on March 31st?
Investors should closely monitor revenue growth figures and management’s guidance for the next quarter. Any positive surprise in these areas, or a clear strategy to address the current growth stagnation, could serve as a much-needed catalyst for the stock.
📋 Disclaimer
This analysis is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.
All active positions and their real-time performance are tracked on our Investment Log.
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