Copart, Inc. (CPRT, Financial) is a leading global provider of online auctions and vehicle remarketing services.Copart shares were very strong in 2020 as the company was viewed as an early reopening play, with individuals’ increased mobility producing more automotive collisions. Copart also has benefited from a scarce number of vehicles and high average selling prices, which have been up more than 25% for each of the past two quarters. As a result, some investors have worried that the strength in online vehicle sellers’ average selling prices simply cannot continue at that rate. Some investors also have had concerns about a slower pace of recovery of vehicle miles traveled and about crash rates. With Copart’s high valuation and its restructuring story played out, we exited our investment in Copart during the first quarter.
From Keeley Teton's Small-Mid Cap Value Fund first-quarter 2021 commentary.
