Copart, Inc. (CPRT) Monthly Stock Report - January 02, 2026

Company Overview

Copart, Inc. (NASDAQ: CPRT) is a leading provider of online auctions and vehicle remarketing services based in Dallas, Texas. Since its establishment in 1982, Copart has leveraged advanced internet auction technology to carve out a prominent position within the Specialty Business Services industry and the broader Industrials sector. With a global footprint that includes operations in the UK, Germany, and Brazil, the company's suite of services encompasses online seller access, salvage estimation, vehicle inspection, and various processing programs designed for a diverse clientele that includes licensed vehicle dismantlers, dealers, and the general public.

As a pioneering force in the vehicle remarketing space, Copart also owns platforms such as CashForCars.com and BluCar, emphasizing its commitment to providing comprehensive solutions tailored to market needs. With total revenue reported at approximately $4.66 billion, Copart underscores its substantial scale of operations and relevance in the ever-evolving landscape of automotive sales.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Analyzing Copart's stock performance over the past year reveals a concerning bearish trend. The stock has seen significant price fluctuations, reaching a 52-week high of $63.85 in May 2025 and a low of $38.18 in recent months. The current trading price of $39.15 places it precariously close to its 52-week low, reflecting significant volatility and market challenges.

Technical Chart Insights

From a technical perspective, the following important observations can be made:

• Trend Analysis: The stock has undergone a sustained decline, dropping approximately 31.21% from prior highs. The trend's direction is marked by consistent lower highs and lower lows, underscoring ongoing bearish sentiments among investors.
• Support and Resistance Levels: The $39.15 price point acts as a crucial support level, while a resistance threshold is identifiable around $55, a price point where the stock previously attempted to stabilize.
• Moving Averages: The fifty-day moving average stands at $40.6172, trending downwards and remaining above current prices, which reinforces the lack of positive momentum in the short term.
• Price Momentum: Recent price action remains weak, showing consolidation around the support level without any significant breakout attempts. Until a strong catalyst is present, the potential for further downward pressure remains.

Overall, the technical analysis suggests that Copart's stock may continue to face obstacles unless positive developments can induce a change in sentiment.

Financial Performance and Metrics

Understanding Copart's financial health is critical for potential investors:

• Revenue: The company reported a total revenue of $4.655 billion, demonstrating year-over-year growth of 9.68%. However, this fell short of market expectations, raising concern among analysts.
• Profitability: Notably, Copart's EBITDA stands at $1.980256 billion, reflecting its operational efficiency and capacity for sustained growth.
• Valuation Metrics: The stock's target high price is set at $65.00, with a mean target price of $48.89 and a low estimate of $33.00. These figures indicate significant potential for price movement based on varying analyst outlooks.
• Market Capitalization: With 968,017,684 shares outstanding and a current price of $39.15, Copart holds a market capitalization approximately around $38 billion. The short interest, at 0.0378%, indicates a degree of confidence among investors regarding its future performance.

Financial Health Indicators

Despite recent price challenges, Copart retains robust fundamentals, illustrated by:

• Current Ratio: An impressive 8.42, signaling strong liquidity and the ability to cover short-term obligations.
• Return on Equity (ROE): Standing at 19%, which indicates effective management and a profitable use of equity.

Recent News and Developments

In the latest developments, Copart has experienced notable fluctuations in stock price, recently hitting a 52-week low of $38.66 on December 1, 2025, marking a 37.15% decrease over the year. This downturn can be attributed to concerns over softening demand and declining used vehicle values, highlighted in the company's Q1 fiscal 2026 report released on November 20, 2025. Although revenue growth of 9.68% was reported, it failed to meet consensus expectations.

Additionally, the market sentiment has turned cautious, with Robert W. Baird decreasing their price target for Copart from $55 to $52 due to soft revenue growth and reduced sales volumes. This sentiment was echoed by Wedgewood Partners, despite the company showing a 12% increase in gross profit year-over-year.

Market Sentiment and Analyst Recommendations

Market sentiment has turned more cautious regarding Copart's future performance. Currently, the consensus among nine analysts shows no formal recommendation key, suggesting a divergence of opinions on the company's potential.

Analyst Price Targets

• Target High Price: $65.00
• Target Mean Price: $48.89
• Target Low Price: $33.00

While the stock displays a favorable outlook based on its current valuation metrics, the lack of a clear recommendation means investors should approach with caution, focusing on the prevailing market conditions and underlying company performance.

Conclusion

The landscape for Copart, Inc. is marked by both opportunities and challenges. While it possesses a strong business model and resilient financial metrics, the current bearish sentiment in the stock market and external pressures, such as declining used vehicle values, pose risks to its recovery. Future performance will heavily rely on Copart's ability to respond to market changes and innovate in its auction services. Therefore, investors should keep an eye on upcoming quarterly results, industry trends, and analyst updates to make well-informed investment decisions.

Ultimately, with careful monitoring and an understanding of market dynamics, Copart may present viable opportunities for astute investors willing to navigate its current challenges.