CPRT changes
Pick any two versions below to diff them.
- Price
- $32.70 → $27.59(−15.6%)
- Thesis
- removed: Copart's US unit volume has fallen. Most of this drop comes from added: Copart trades at a discount because one large insurance customer removed: that moved added: its business to removed: a competitor, added: rival RB Global. The removed: number added: market fears this is the start of removed: total-loss cars added: a bigger shift, not one lost contract. Jeff Liaw's sudden exit as CEO in added: July 2026 adds to this uncertainty. Jay Adair, the removed: US is not falling. It is rising, because repair costs keep rising. So added: previous CEO, returned to the removed: market itself is not shrinking. added: role the same day. The removed: market may be pricing added: new $1.9 billion deal to buy ACV Auctions adds integration risk on top of this. ACV loses money today, and Copart removed: as though added: does not expect it removed: will keep losing share. If Copart wins back share, or added: to add to profit before fiscal 2028. For the removed: lost contract added: discount to close, total-loss car volume must stabilize once the RB Global loss fully laps removed: in the year-over-year numbers, added: expected by mid-2027. The ACV deal, launched as a tender offer on September 17, 2026, should close by the removed: discount can close. added: end of 2026. Its early progress will show whether it distracts management from the core auction business. Copart's next quarterly report is expected around December 2026. A clear read on whether the volume loss was a one-time event likely takes another two to four quarters, stretching into mid-2027.
- Recent events
- Sep added: 17, 2026: Copart began a tender offer, through subsidiary Apple Merger Sub, Inc., to buy all outstanding ACV Auctions shares for $10.50 per share in cash. The offer is set to expire September 30, 2026, subject to a majority-tender condition and antitrust clearance. The deal has no financing condition and is expected to close by the end of calendar 2026. Sep 10, 2026: Copart reported Q4 FY2026 results. Revenue grew 2.4% to $1.15 billion. Operating income fell 10.6%. The operating margin fell 4.7 percentage points. Sep 10, 2026: Copart agreed to buy ACV Auctions for $1.9 billion in cash. ACV runs a separate marketplace, where car dealers buy and sell used cars from each other. Jul 31, 2026: Jeff Liaw stepped down as CEO. Jay Adair, the previous CEO, returned to the role the same day.