Corporate News
Copart Inc. (NASDAQ: CPRT), a U.S.-based provider of salvage‑vehicle processing and sale services, experienced a decline in its share price after a recent analyst downgrade. The downgrade was issued by Stephens, which reduced its price target from $50.00 to $46.00. The downgrade prompted a pre‑market gap down; the stock opened at $48.76 after closing the previous day at $49.97. Trading concluded with shares at $48.23, marking a decrease of approximately 3.5% from the prior close.
Option Activity Indicates Bearish Sentiment
Trading activity on Copart’s options has shifted markedly toward bearish positions. On the day of the downgrade, 21,048 put options were purchased, an increase of roughly 393% relative to the usual daily volume. This surge in put buying suggests that investors are increasingly concerned about the stock’s short‑term prospects.
Q2 2025 Earnings
Copart reported its financial results for the quarter ending July 31, 2025:
| Metric | Q2 2025 | Q2 2024 | % Change |
|---|---|---|---|
| Net income per share | $0.41 | $0.33 | +24 % |
| Total revenue | $1.13 billion | $1.07 billion | +5.25 % |
The company’s earnings per share grew by 24% from the same period a year earlier, while revenue increased by 5.25%. These results are above analysts’ expectations for the quarter.
Market Context
The broader market was mixed on the day Copart’s price moved. The NASDAQ 100 index finished nearly unchanged at 23,652.44 points. The S&P 500 index fell 0.53%, closing at 6,467.52 points.
The downgrade, coupled with heightened put‑option activity, indicates a shift toward a more bearish view of Copart’s near‑term valuation. Investors will likely monitor the company’s subsequent earnings releases and any strategic actions that could influence its market outlook.