Copart Stock Dives 2.51% Amid Earnings Revisions, Insider Sales and Market Uncertainty

The share price of Copart, Inc. (CPRT) fell to its lowest level since February 2018 on Nov. 6, with an intraday decline of 2.38%. The stock has now dropped 2.51% over the past three trading days, extending a downward trend that has pushed it to a multi-year low.

Analysts attribute the selloff to a mix of revised earnings expectations and cautious investor sentiment. The Zacks Consensus EPS estimate for the upcoming quarter declined 2.14% over the past month, reflecting reduced confidence in near-term performance. Despite a projected 8.11% year-over-year earnings growth, Copart’s forward P/E ratio of 25.51—lower than its industry average—has drawn mixed reactions. Institutional and insider activity further cloud the outlook: CEO Jeffrey Liaw sold $1.09 billion worth of shares in October, while director Thomas N. Tryforos offloaded $10.88 million in September. These moves, coupled with Bank of Montreal’s 6.3% stake reduction, highlight uncertainty about the company’s immediate trajectory.

Broader market dynamics also weigh on Copart. The stock has underperformed the S&P 500 and Nasdaq by more than 3% year-to-date, despite outperforming its struggling Business Services sector. A 24.1% decline from its 52-week high to $41.95 underscores a reassessment of its growth potential. Analysts remain divided, with ratings ranging from “Strong Buy” to “Hold,” reflecting divergent views on valuation discounts versus competitive pressures. While Copart’s 18.17% return on equity and 33.41% net margin remain robust, the 2.9% year-over-year revenue growth in the fourth quarter fell short of past expansion rates. Investors will likely scrutinize the upcoming earnings report and sector trends to gauge whether the current discount reflects undervaluation or near-term challenges.