Street Calls of the Week
Copart Inc. stock reached a 52-week low, closing at 43.69 USD. This marks a significant downturn for the company, which has experienced a 1-year change of -18.36%. Despite the recent decline, InvestingPro data shows Copart maintains strong financial health with a current ratio of 8.42, indicating robust liquidity. The company, valued at $42.4 billion, holds more cash than debt on its balance sheet. The decline reflects ongoing challenges within the automotive auction industry, impacting investor sentiment and driving the stock price to its lowest point in the past year. As market conditions continue to fluctuate, stakeholders will be closely monitoring Copart’s strategic responses to these pressures. According to InvestingPro analysis, the stock is currently trading at Fair Value, with 12 additional exclusive insights available for subscribers, including detailed financial health metrics and growth indicators.
In other recent news, Copart reported its fourth-quarter earnings for fiscal year 2025, delivering an earnings per share (EPS) of $0.41, which surpassed analysts’ expectations of $0.36. However, revenue slightly missed projections, coming in at $1.13 billion against the anticipated $1.14 billion. Despite the revenue miss, the market responded positively to the company’s strong EPS performance. Analyst firm CFRA maintained a Strong Buy rating on Copart but adjusted its price target down to $65 from $70, citing a valuation discount compared to historical averages. Meanwhile, Stephens lowered its price target to $46 from $50, expressing concerns over competition but maintaining an Equal Weight rating. These developments highlight the mixed analyst perspectives on Copart’s valuation and competitive positioning. Copart’s strategic focus on technology and auction liquidity was noted as a positive aspect by market observers.
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