Stock Analysis | Copart Outlook - A Bearish Technical Outlook Amid Mixed Analyst Signals

Market Snapshot

Takeaway: Copart (CPRT) is currently showing a weak technical outlook with bearish signals dominating, while fundamentals are mixed and recent news doesn’t provide a clear direction. Investors are advised to approach with caution.

News Highlights

Recent news affecting the broader market and potentially influencing Copart includes:

• May 31: Gaza aid supplies hit by looting – Humanitarian crises in Gaza continue to disrupt supply chains and create global political tensions. While this doesn’t directly affect Copart, it may slow down broader economic activity and impact investor sentiment.
• May 30: Russia boosts oil supplies to Syria – This news highlights increased geopolitical activity, which can increase global economic uncertainties. While Copart is not directly involved, such volatility may weigh on investor confidence.
• May 28: US new China visa policy might affect 300,000 students – This policy change signals a shift in U.S.-China relations, which could indirectly affect global trade and business environments, including sectors like e-commerce and logistics where Copart operates.

Analyst Views & Fundamentals

Copart's analyst landscape is mixed, with one analyst from Baird issuing a Buy rating and another from Stephens & Co. giving a Neutral rating. The simple average rating score is 3.50, while the performance-weighted rating score is 2.20, indicating that historical performance of analysts is heavily skewing the weighted score downward.

Rating consistency is low, with the two active analysts diverging in both sentiment and historical track record. This mismatch does not align well with the recent price trend, which has seen a 3.24% rise over the past few days, suggesting a disconnect between analyst expectations and actual market movements.

Key fundamental values and their model scores (0-10, with 10 being best) include:

• Return on Assets (ROA): 4.21% → internal diagnostic score: 2
• Cash Flow from Operations (CFOA): 1.94% → internal diagnostic score: 2
• Net Profit Margin (NPM): 33.23% → internal diagnostic score: 2
• Annualized Return on Total Assets: 18.80% → internal diagnostic score: 2
• Interest Coverage Ratio: -90.23% → internal diagnostic score: 1
• Cash to Market Value (Cash-MV): -35.08% → internal diagnostic score: 1

These figures suggest that while Copart has some strong margins and returns, its liquidity and debt management scores are weak. This could be a red flag for investors looking for long-term stability.

Money-Flow Trends

Copart's money-flow trends are currently negative across all investor categories, with the most notable outflows from:

• Extra-large investors: 45.59% outflow ratio
• Large investors: 49.51% outflow ratio
• Medium investors: 48.18% outflow ratio

The overall inflow ratio is just 46.73%, indicating that the stock is not seeing strong institutional support. Retail investors (small investors) are also pulling back, with a 48.97% outflow ratio. This suggests that both big and small investors are disengaging from the stock, which is a cautionary signal.

Key Technical Signals

From a technical standpoint, Copart is showing very weak signals, with no bullish indicators and two bearish signals emerging in the past five days.

• Williams %R Overbought: Internal diagnostic score: 1.82 – This suggests that while the indicator is neutral in bias, it has historically resulted in an average return of -0.27% with a win rate of only 43.06%.
• Shooting Star: Internal diagnostic score: 1.00 – This is a strong bearish signal with no historical win rate and an average return of -1.45%, indicating high risk.

The recent indicators by date (August 12-20, 2025) show that Williams %R Overbought has occurred multiple times, and it was followed by a Shooting Star pattern on August 20, 2025. These signals indicate a lack of momentum and a possible downward trend in the near term.

Conclusion

Investors in Copart should consider waiting for a pull-back before entering or adding to positions. The technical indicators are bearish with no bullish support, and the analyst ratings are inconsistent. While the fundamental scores are mixed, the weak cash flow and negative interest coverage are concerning. With money flowing out from both institutional and retail investors, it may be wise to monitor the situation closely and wait for clearer signals before taking action.