- Price
- $28.60 → $27.59(−3.5%)
- Discount
- 18.3% → 21.2%(+2.9 pts)
- Thesis
- Copart's US unit volume has fallen. Most of this drop comes from trades at a discount because one large insurance customer that moved its business to a competitor,rival RB Global. The number of total-loss cars in the USmarket fears this is the start of a bigger shift, not fallingone lost contract. It is rising, because repair costs keep risingJeff Liaw's sudden exit as CEO in July 2026 adds to this uncertainty. SoJay Adair, the market itself is not shrinkingprevious CEO, returned to the role the same day. The market may be pricingnew $1.9 billion deal to buy ACV Auctions adds integration risk on top of this. ACV loses money today, and Copart as thoughdoes not expect it will keep losing shareto add to profit before fiscal 2028. If Copart wins back shareFor the discount to close, ortotal-loss car volume must stabilize once the lost contractRB Global loss fully laps in the year-over-year numbers, the discount canexpected by mid-2027. The ACV deal, launched as a tender offer on September 17, 2026, should close by the 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
- 2026-09-17: 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.
2026-09-10: 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.
2026-09-10: 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.
2026-07-31: Jeff Liaw stepped down as CEO. Jay Adair, the previous CEO, returned to the role the same day.