Copart, Inc. (CPRT)

In the past six months, Copart's stock has experienced fluctuations, reaching a new 52-week low despite reporting revenue growth. As of June 26, 2025, the stock price was $48.24, representing a decline of 11.91% over the past year. Recent earnings reports indicate continued growth, with revenue and net income increasing in Q1, Q2 and Q3 Fiscal 2025. Despite these positive financial results, the stock has faced pressure due to cyclical factors and a Department of Justice investigation.

Copart's business model is generally agnostic to the economic cycle and not very cyclical compared to the broader automotive sector. However, cyclical factors such as uninsured motorists and softness in the heavy equipment segment can influence demand. Natural disasters can also increase revenue due to a surge in damaged vehicles.

Copart, Inc. is a global leader in online vehicle auctions and remarketing services, primarily serving the automotive industry. The company processes and sells vehicles, predominantly online, for automotive resellers such as insurance companies, rental car agencies, fleet operators, and finance companies. Copart's major products and services include online auctions for used, wholesale, and repairable vehicles, utilizing its patented virtual auction technology. They offer a comprehensive suite of services to vehicle sellers, such as salvage estimation, vehicle processing, transportation, storage, and assistance with vehicle title processing. The company also derives revenue from the sale of vehicles it takes ownership of and resells.

Copart is headquartered in Dallas, Texas, and has a global presence with over 200 locations across 11 countries, including the United States, Canada, the United Kingdom, Germany, Ireland, Brazil, Spain, the UAE, Bahrain, Oman, and Finland. The online auction platform connects buyers and sellers worldwide, with buyers in over 185 countries. Approximately 88% of Copart's service fee revenue and 63% of its vehicle sales revenue originate from within the United States.

Copart's brand reputation has faced challenges in the past year, with a surge in complaints regarding misrepresentation of vehicle condition and failure to disclose defects. Rigid refund policies have sparked lawsuits, leading to rising litigation and eroding trust, potentially impacting auction volume.

Copart, Inc. has significant institutional ownership, with institutions holding approximately 81% of the company's shares. The largest institutional shareholders include The Vanguard Group, Inc., BlackRock, Inc., Principal Financial Group Inc., and State Street Corp. Individual insiders own about 8.23% of the shares, with Willis J. Johnson, the founder and Chairman of the Board, being a major individual shareholder. CEO A. Adair also holds a notable stake.