Copart, Inc. (CPRT)

Copart's stock price has declined approximately 28.33% to 29.93% over the past year, reaching $39.83 on January 9, 2026. This decline is attributed to sentiment-driven selling, fund liquidations, and portfolio rebalancing. In November 2025, the stock experienced a negative market reaction following its Q1 2026 earnings report due to a slight revenue miss. Analysts noted a perceived loss of market share, but management attributed it to insurance timing. Despite these events, the company's strong balance sheet, high profit margins, and market dominance are seen as factors that could support a rebound.

Demand for Copart's products and services exhibits seasonality, influenced by catastrophic events and cyclical trends in vehicle damage. Events like hurricanes or floods increase demand for Copart's services. The economics of vehicle repairs make total loss declarations more common, benefiting Copart's supply. Vehicle accident frequency tends to remain steady or even rise during economic slowdowns. While underlying drivers of total loss frequency are consistent, individual quarters can fluctuate, and seasonal effects are observed. A potential scenario where economic conditions push more consumers to buy used cars could eventually lead to increased demand for car auction companies like Copart.

Copart, Inc. is a global leader in online vehicle auctions and remarketing services, operating in the industrials sector. Founded in 1982, it offers an end-to-end solution for salvage and clean-title vehicles, utilizing its VB3 online auction technology to connect sellers with a global network of buyers. The company's major products and services include an online vehicle auction platform (VB3) for various types of vehicles. It also provides vehicle remarketing services, including towing, storage, title management, damage appraisal, and digital imaging. Copart engages in direct vehicle sales and offers related services such as dismantled parts sales, powersport vehicle auctions, and heavy equipment auctions. Other services include online seller access, salvage estimation, end-of-life vehicle processing, vehicle inspection stations, on-demand reporting, loan payoff, and dealer services. The company also operates platforms like CashForCars.com for direct vehicle purchasing.

Copart operates a global network of vehicle storage facilities and online auction platforms across 11 countries, including the United States, Canada, the United Kingdom, Germany, Brazil, Spain, Finland, the United Arab Emirates, Oman, Ireland, and Bahrain. The United States accounts for approximately 83% of its net sales.

Copart maintains a strong brand reputation as a dominant force in the global salvage vehicle auction market, leveraging its proprietary technology and extensive land footprint. The company's business model is considered resilient and "recession-resistant." Strategic investments and partnerships, such as the acquisition of Purple Wave and partnership with One Inc., have positively impacted its reputation. The company acquired Hall Ranch in South Florida, significantly increasing vehicle storage capacity. While the stock price experienced a decline in 2025, this was largely attributed to market sentiment and fund rebalancing rather than a fundamental breakdown in the business model or a negative impact on its brand reputation.

Institutional investors hold a majority of Copart, Inc. stock, ranging from approximately 72.82% to 85.78% of outstanding shares. The largest institutional holder is The Vanguard Group, Inc., followed by BlackRock, Inc., Principal Financial Group Inc., and State Street Corp. Co-founder Willis J. Johnson is the largest individual shareholder. While institutional investors have been accumulating shares, some insiders, including CEO Jeffrey Liaw, have been selling shares.