Is Copart Inc. (CPRT) A Good Investment?

Copart Inc. (NASDAQ:CPRT) finished Friday with an addition of $0.43 to close at $152.27, an upside of 0.28 percent. An average of 535,740 shares of common stock have been traded in the last five days. There was a gain of $7.28 in the past week, and it reached a new high 29 times over the past 12 months. The last 20 days have seen an average of 748,225 shares traded, while the 50-day average volume stands at 934,404.

CPRT stock has increased by 4.40% in the last month. The company shares reached their 1-month lowest point of $134.85 on 10/06/21. With the stock rallying to its 52-week high on 10/22/21, shares of the company touched a low of $101.92 and a high of $152.75 in 52 weeks. It has reached a new high 28 times so far this year and achieved 19.66% or $25.02 in price. In spite of this, the price is down -0.31% from the 52-week high.

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free


Insider Transactions

38 days have passed since Copart Inc. (CPRT) last reported insider trading activity. ADAIR A JAYSON, who is Chief Executive Officer, most recently acquired $170,000 shares at $147.20 per share on Sep 15. In this transaction, the insider spent $25,024,000. Director, COHAN STEVEN D, disposed of 80,000 shares at a price of $139.46 on Jul 12. The insider now owns more than $11,156,776 worth of shares. Prior to that, Chief Executive Officer ADAIR A JAYSON went on to Sale 130,000 shares at $139.21 each on Jul 12. An amount of $18,096,975 was transacted.

Valuation Metrics

Copart Inc. (CPRT) has a trailing price-to-earnings (P/E) ratio of 39.07, which compares with the 22.10 for the broader industry and 29.83 for the sector. In the last five years, Copart Inc.’s PE ratio has ranged between 44.65 and 15.77. The stock’s beta is 1.03. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 13.39, the price-to-book (PB) ratio at 10.21, and the price-to-cash flow ratio at 68.29.

The quick ratio of Copart Inc. for the three months ended July 30 was 3.90, and the current ratio was 4.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.11 and a total debt to equity ratio of 0.11 for the quarter ending July 30. Copart Inc.’s EBITDA margin for the year ending July 30 is 46.74%, while its operating margin for the same period stands at 42.20%. Its gross profit as reported stood at $1.34 billion compared to revenue of $2.69 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Copart Inc.’s return on assets was 22.70%. For the broader industry, ROE averaged 3.67 over the past year.

Earnings Surprise

For the three-month period that ended July 30, Copart Inc. had $397.64 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $255.97 million in the quarter, while revenues of $286.8 million were grew 35.33%. The analyst consensus anticipated Copart Inc.’s latest quarter earnings to come in at $0.91 per share, but it turned out to be $1.03, a 13.20% surprise. For the quarter, EBITDA amounted to $331.44 million. Shareholders own equity worth $237.1 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Copart Inc. (CPRT) price momentum. RSI 9-day as of the close on 22 October was 75.66%, suggesting the stock is Overbought, with historical volatility in this time frame at 14.76%.

As of today, CPRT’s price is $149.88 +5.02% or $7.28 from its 5-day moving average. CPRT is currently trading +3.02% higher than its 20-day SMA and +22.36% higher than its 100-day SMA. However, the stock’s current price level is +7.72% above the SMA50 and +25.98% above the SMA200.

The stochastic %K and %D were 97.46% and 97.40%, respectively, and the average true range (ATR) was 2.91. With the 14-day stochastic at 94.11% and the average true range at 3.04, the RSI (14) stands at 67.22%. The stock has reached 4.81 on the 9-day MACD Oscillator while the 14-day reading was at 7.35.

Analyst Ratings

Stephens upgraded Copart Inc. (NASDAQ: CPRT) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Equal-weight. The consensus rating for Copart Inc. (CPRT) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell CPRT, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 7 others rate it as a “buy”.

What is CPRT’s price target for the next 12 months?

Analysts predict a range of price targets between $135.00 and $165.00, with a median target of $155.00. Taking a look at these predictions, the average price target given by analysts for Copart Inc. (CPRT) stock is $153.89.


Please enter your comment!
Please enter your name here


Hot Topics

Related Videos

Related Videos

Related Articles



Download Free eBook For



100% free. stop anytime no spam