Views of Wall Street’s Leading Experts on Copart Inc.

Copart Inc. (NASDAQ: CPRT) stock jumped 0.08% on Friday to $130.34 against a previous-day closing price of $130.24. With 1.02 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.16 million shares. During the session, the Specialty Business Services company that operates in wider Industrials sector, reached to the highest price of $131.17 whereas the lowest price it dropped to was $129.88. The 52-week range on CPRT shows that it touched its highest point at $161.12 and its lowest point at $102.21 during that stretch. It currently has a 1-year price target of $156.43. Beta for the stock currently stands at 1.14.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CPRT was up-trending over the past week, with a rise of 3.63%, but this was up by 15.56% over a month. Three-month performance surged to 9.69% while six-month performance fell -1.15%. The stock lost -12.13% in the past year, while it has lost -14.04% so far this year. A look at the trailing 12-month EPS for CPRT yields 4.49 with Next year EPS estimates of 4.76. For the next quarter, that number is 1.10. This implies an EPS growth rate of 32.90% for this year and 6.66% for next year. EPS is expected to grow by 22.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 28.60%.

Float and Shares Shorts:

At present, 237.50 million CPRT shares are outstanding with a float of 213.83 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.52 million, which was 1.06% higher than short shares on Jun 14, 2022. In addition to Mr. Willis J. Johnson as the firm’s Founder & Exec. Chairman, Mr. A. Jayson Adair serves as its Co-CEO & Director.

Institutional Ownership:

Through their ownership of 82.84% of CPRT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.95% of CPRT, in contrast to 34.06% held by mutual funds. Shares owned by individuals account for 32.51%. As the largest shareholder in CPRT with 9.30% of the stake, The Vanguard Group, Inc. holds 22,112,827 shares worth 22,112,827. A second-largest stockholder of CPRT, BlackRock Fund Advisors, holds 11,340,800 shares, controlling over 4.77% of the firm’s shares. Principal Global Investors LLC is the third largest shareholder in CPRT, holding 9,516,210 shares or 4.00% stake. With a 2.66% stake in CPRT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,311,711 shares are owned by the mutual fund manager. The Principal Investors – Mid Cap Fun, which owns about 2.37% of CPRT stock, is the second-largest Mutual Fund holder. It holds 5,633,379 shares valued at 612.12 million. Vanguard Mid Cap Index Fund holds 2.07% of the stake in CPRT, owning 4,924,887 shares worth 535.14 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 29, 2022, CPRT reported revenue of $939.94M and operating income of $372.75M. Over the past year, revenue came in at $3.37B while operating income stood at $1.35B. It generated $278.62M net income for the quarter, which came to $1.08B over the last twelve months. The EBITDA in the recently reported quarter was $410.80M and diluted EPS was $1.16. EBITDA for the full year was $1.49B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CPRT since 10 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CPRT analysts setting a high price target of $182.00 and a low target of $134.00, the average target price over the next 12 months is $154.63. Based on these targets, CPRT could surge 39.63% to reach the target high and rise by 2.81% to reach the target low. Reaching the average price target will result in a growth of 18.64% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CPRT will report FY 2022 earnings on 09/07/2023. Analysts have provided yearly estimates in a range of $4.59 being high and $4.38 being low. For CPRT, this leads to a yearly average estimate of $4.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Copart Inc. surprised analysts by $0.03 when it reported $1.17 EPS against a consensus estimate of $1.14. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $1.23 and the low estimate is $1.04. The average estimate for the next quarter is thus $1.10.

Summary of Insider Activity:

Insiders traded CPRT stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 101,000 shares were bought while 101,000 shares were sold. The number of buy transactions has increased to 4 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 170,000 while 340,000 shares were sold.

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