CPRT – Copart, Inc.

Copart, Inc. (NASDAQ: CPRT) – Monthly Investment Analysis Report

Publication Date: December 01, 2025

Company Overview

Copart, Inc., headquartered in Dallas, Texas, operates within the Specialty Business Services industry, a subset of the broader Industrials sector. The company is primarily known for its innovative approach to online vehicle auctions, providing a comprehensive suite of vehicle remarketing services across multiple countries, including the United Kingdom, Germany, Brazil, Canada, the United Arab Emirates, Spain, Finland, Oman, the Republic of Ireland, and Bahrain.

Utilizing advanced virtual bidding technology, Copart allows customers to buy and sell vehicles through an efficient online platform. Their diverse services include salvage estimation, vehicle processing, inspection, and parts sales from end-of-life vehicles, catering to licensed vehicle dismantlers, dealers, exporters, and the general public. With a robust total revenue of approximately $4.66 billion and a reputation for operational profitability, Copart continues to enhance its market presence and operational capabilities.

52-Week Price Performance Analysis

The 52-week stock price chart for Copart, Inc. (CPRT) shows a clear bearish trend, where the stock has experienced a significant decline from its high of around $64.06 in December 2024 to its current price of $39.10, marking a substantial decrease of approximately 37.15%. The downward trajectory is evidenced by a consistent failure to break the key resistance level near $60, which the stock tested multiple times in early 2023, particularly in February and May.

Key Technical Levels

• Resistance Levels: The primary resistance level near $60 continues to act as a ceiling for price progress.
• Support Levels: Currently, a critical support level appears to be forming around the $40 mark. A break below this level could signal further downside potential for the stock.
• Moving Average: The fifty-day moving average is at $43.27, indicating that the stock is currently underperforming relative to its recent average and further highlighting the bearish momentum.

Price Action Insights

Recent trading patterns indicate continued weakness in the stock’s performance, evidenced by a series of lower highs and lower lows. The absence of any significant bullish reversal patterns suggests that the current bearish sentiment may persist. Investors should remain cautious, considering waiting for clearer reversal signals or a breach above resistance levels before initiating long positions. The overall technical indicators remain bearish at this stage, with a significant break above the $50 mark required to hint at a potential reversal of the downward trend.

Financial Performance and Metrics

Copart’s financial standing reflects its operational strength, with robust revenue generation. The company reported a total revenue of $4.66 billion, showcasing a solid economic foundation and market positioning.

Key Financial Metrics

• Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): Approximately $1.98 billion, which emphasizes the company’s ability to maintain strong operational profitability.
• Net Income: For the fourth quarter of fiscal 2025, Copart achieved a net income of $396 million, representing a 22.9% increase year-over-year.
• Earnings Per Share (EPS): EPS reached $0.41, showing a 24.2% increase, attesting to solid profitability measures.

Considering these financial metrics, the valuation appears attractive, with analysts indicating a favorable growth potential. The recommendation to buy reflects a solid confidence in Copart’s ability to generate substantial value for its investors.

Recent News and Developments

Recently, Copart has been in the spotlight due to several significant developments:

1. Stock Price Fluctuations: On November 25, 2025, the stock experienced a decline of 4.3% after JPMorgan Chase & Co. lowered its price target from $50.00 to $45.00. This downgrade highlighted concerns regarding the company’s growth trajectory amid ongoing market conditions.

2. Fourth Quarter Results: Despite recent stock fluctuations, Copart reported robust financial results for fiscal Q4 2025, achieving revenue growth of 5.2% year-over-year.

3. Stock Split Announcement: The announcement in August 2023 of a two-for-one stock split aimed to enhance liquidity and accessibility for investors, effectively doubling the number of outstanding shares to approximately 960 million.

4. Analyst Upgrades and Downgrades: In September 2025, HSBC upgraded Copart from “Hold” to “Strong Buy,” believing that current slower volume growth is temporary and that Copart’s strong historical growth provides a compelling entry point for investors.

Market Sentiment and Analyst Recommendations

Despite recent downward pressures, analyst sentiment towards Copart remains cautiously optimistic. The stock currently trades at $39.10, significantly below its fifty-two week high of $64.06. This pricing suggests potential growth opportunities amidst prevailing market conditions.

Analyst Consensus and Price Targets

• Average Analyst Rating: The recommendation mean is 2.33, which falls between “Hold” and “Buy,” showcasing a generally positive outlook.
• Price Targets: Analysts have established:
• A target high price of $65.00
• A target mean price of approximately $49.67
• A target low price of $33.00

These metrics reflect optimism about Copart’s future performance, with most analysts leaning towards a more conservative mean of $49.67 amidst current market volatility.

Final Thoughts on Opportunities and Risks

In conclusion, Copart, Inc. presents both investment opportunities and associated risks. The company has demonstrated solid financial performance with strong revenue growth and profitability, supported by a recommendation to buy by multiple analysts. However, technical indicators show a bearish trend with persistent downward momentum. Potential investors should closely monitor key support and resistance levels before making investment decisions. The overall market sentiment, combined with a favorable long-term growth outlook, positions Copart as a viable candidate for retail investors seeking to capitalize on potential price recoveries in the future.

Investors are advised to exercise caution while navigating the current market landscape, keeping abreast of significant economic indicators and developments affecting the Specialty Business Services industry.

Metric	Value
Market Cap	$37.8b
Total Debt	$99.9m
Total Cash	$5.2b
Shares Outstanding	968.0m
Float Shares	888.1m