On October 9, 2023, Stephen Fisher, a director at Copart Inc (CPRT, Financial), sold 160,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 210,000 shares over the past year and has not made any purchases.
Stephen Fisher is a key figure at Copart Inc, a global leader in online vehicle auctions and a premier destination for the resale and remarketing of vehicles. Copart's innovative technology and online auction platform links sellers to more than 750,000 members in over 170 countries. The company offers services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users.
The insider's recent sell-off is part of a broader trend at Copart Inc. Over the past year, there have been eight insider sells and zero insider buys. This trend is illustrated in the following image:
The relationship between insider trading and stock price is complex. While it's not uncommon for insiders to sell their shares, it can sometimes be a bearish signal. However, it's important to consider the context of these sales. In this case, the insider has been selling shares consistently over the past year, which could suggest a personal financial strategy rather than a lack of confidence in the company.
On the day of the insider's recent sell, shares of Copart Inc were trading at $45.69, giving the company a market cap of $44.48 billion. The stock's price-earnings ratio is 36.05, significantly higher than the industry median of 16.69 and the company's historical median. This suggests that the stock is currently overvalued.
However, according to the GuruFocus Value, the stock is fairly valued. With a price of $45.69 and a GuruFocus Value of $45.95, Copart Inc has a price-to-GF-Value ratio of 0.99. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, while the insider's recent sell-off may raise some eyebrows, it's important to consider the broader context. The stock's high price-earnings ratio suggests it may be overvalued, but the GuruFocus Value indicates it's fairly valued. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
