Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Making a noteworthy insider sell on April 1, JAYSON ADAIR, Executive Chairman at Copart (NASDAQ:CPRT), is reported in the latest SEC filing.
What Happened: ADAIR's decision to sell 600,000 shares of Copart was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $34,662,000.
In the Tuesday's morning session, Copart's shares are currently trading at $57.51, experiencing a down of 0.96%.
About Copart Based in Dallas, Copart operates an online salvage vehicle auction with operations in 11 countries across North America, Europe, and the Middle East, facilitating over 3.5 million transactions annually. The company utilizes its virtual bidding platform, VB3, to connect vehicle sellers with over 750,000 registered buyers around the world. Buyers primarily consist of vehicle dismantlers, rebuilders, individuals and used vehicle retailers. About 80% of Copart's vehicle volume is supplied by auto insurance companies holding vehicles deemed a total loss. Copart also offers services such as vehicle transportation, storage, title transfer, and salvage value estimation. The company primarily operates on a consignment basis and collects fees based on the vehicle's final selling price.
Unraveling the Financial Story of Copart Revenue Growth: Copart's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2024, the company achieved a revenue growth rate of approximately 6.63%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Evaluating Earnings Performance:
- Gross Margin: The company maintains a high gross margin of 45.5%, indicating strong cost management and profitability compared to its peers.
- Earnings per Share (EPS): Copart's EPS reflects a decline, falling below the industry average with a current EPS of 0.34.
Analyzing Market Valuation:
- Price to Earnings (P/E) Ratio: Copart's current Price to Earnings (P/E) ratio of 41.48 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 13.89, Copart's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 30.36, Copart demonstrates exemplary market valuation, surpassing industry averages.
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Uncovering the Importance of Insider Activity While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Unlocking the Meaning of Transaction Codes When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Copart's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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