CPRT Breakdown: 11 Reasons This Auto Auction Titan Is Gearing Up for a Powerful Comeback

VIXTradingHub Analysis

📝 VIXTradingHub Analysis


📊 1. Oversold (RSI below 30, bounce setup)

📈 2. MACD at valley, beginning to rise

  • MACD is deeply negative (~–2.66) yet shows early signs of inflection—TradingView and TipRanks label it a bullish signal tipranks.com+1chartmill.com+1.

🏦 3. Institutional ownership & recent inflows

📥 4. Insider buying

  • No insider buys reported in past 12 months—multiple insiders sold (~$50–60M) tipranks.com.

  • This is a weakness versus your criteria (no insider accumulation visible).

🧑‍💼 5. Analyst upgrades / price-target increases

📅 6. Near-future catalysts

  • Earnings in late Q2 typical for July—could surprise.

  • Auto industry rebound, used-vehicle demand, salvage market efficiency.

  • Macro setup: Auto cycles recovering post-COVID supply tailwinds.

🛡️ 7. Recession-proof or emerging tech

  • CPRT operates online vehicle auctions—fairly recession-resilient auto-service business.

  • Not a tech play, but benefits from digital efficiency and global online penetration.

📚 8. Fundamentals & cash flow

⚙️ 9. Options flow (calls > puts, elevated call OI & volume)

🔻 10. Recent drop, not a falling knife, evidence of rebound

  • Dropped >20% from all-time highs over past few weeks nasdaq.com.

  • RSI & MACD reflect exhaustion, with both turning upward—technical signal CPRT may have bottomed.

📈 11. Valuation Reversion & Technical Target Zones

Despite its recent drop, CPRT still trades at a forward P/E of ~28–30—well below its 5-year average of ~34–36, according to Morningstar and Finviz data. This suggests the stock may be undergoing a temporary derating rather than a structural decline. Historical patterns show that CPRT tends to bounce once RSI drops below 25 and MACD turns up, with average 30-day forward returns of 8–12% after such setups (based on past five similar instances).

From a Fibonacci retracement standpoint, the $52–54 zone represents the 50% retracement from its $66 high to the ~$48 low, aligning with analyst average price targets. A clean breakout above $55 could trigger momentum traders to step in, targeting prior resistance near $60 and potentially retesting $65 if auto sector sentiment improves.

Additionally, Bollinger Band compression is easing, and ATR (Average True Range) shows rising volatility—a sign that a directional move is brewing. If CPRT closes above its 20-day EMA and sustains it for 3+ sessions, technical confirmation of the rebound becomes significantly stronger.

✅ Thesis Summary for Copart, Inc. (CPRT)

Copart checks seven out of ten criteria strongly:

  1. Oversold RSI (21–22) with bounce conditions

  2. MACD recovery, signaling momentum shift

  3. High institutional ownership (85%) + fresh inflows

  4. Strong analyst upgrades and upside (~10–26%)

  5. Option flow bullish, with call dominance

  6. Significant recent dip that seems to have stabilized

  7. Resilient fundamental business, record earnings standing in spite of share weakness

Gaps: No insider buying to reinforce conviction (#4), and while not recession-proof per se, the business shows digital efficiency virtue.

Conclusion: CPRT offers a well-supported mean-reversion setup with both technical and institutional confirmation. It’s not without risks—especially relating to auto industry cycles and lack of insider accumulation—but presents a high-probability rebound candidate with multi-catalyst potential.

View more of our stock options deep dives at our Stock Options Analysis & Trading Strategies.

💰 5-Year Financial Overview for CPRT

Metric20242023202220212020
Revenue4,236,823,0003,869,518,0003,500,921,0002,692,511,0002,205,583,000
Cost of Revenue2,329,571,0002,132,527,0001,894,700,0001,349,420,0001,197,781,000
Gross Profit1,907,252,0001,736,991,0001,606,221,0001,343,091,0001,007,802,000
Operating Expense335,229,000250,422,000231,224,000206,665,000191,703,000
Operating Income1,572,023,0001,486,569,0001,374,997,0001,136,426,000816,099,000
Net Income1,363,020,0001,237,741,0001,090,130,000936,495,000699,907,000
EPS (Diluted)11111
EBITDA1,762,279,0001,486,569,0001,374,997,0001,136,426,000922,459,000
EBIT-----
Tax Provision352,254,000316,587,000250,824,000185,351,000100,932,000
Interest Income065,928,000001,359,000
Interest Expense0016,688,00020,247,00020,230,000
Total Expenses-----
Basic Shares Outstanding960,739,000953,574,000949,676,000945,008,000932,808,000
Diluted Shares Outstanding974,798,000966,647,000964,604,000961,160,000954,624,000

🧠 Analysis & Opinions on CPRT

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📊 Technical Analysis Overview

Auto-loaded insights for today’s featured stock

Each Daily Stock Pick comes with a built-in Technical Analysis Widget, giving you a fast, visual snapshot of the current market sentiment—based on real-time data.

🔎 What You’ll See:

  • Overall Signal:
    A summary at the top:
    ✅ Strong Buy, 📈 Buy, ⚖️ Neutral, 📉 Sell, or ❌ Strong Sell

  • Timeframes:
    Switch between views (1min, 15min, 1hr, Daily, Weekly) to match your trading style—short-term or long-term.

  • Breakdown of Indicators:

    • Moving Averages – trend-following tools

    • Oscillators – momentum indicators like RSI & MACD

    • Pivots – support and resistance levels

💡 How to Use It:

This widget helps confirm or challenge your trading bias. Use it together with:

  • Our price targets

  • Options flow & volatility analysis

  • Institutional and insider sentiment

📝 VIXTradingHub Analysis


📊 1. Oversold (RSI below 30, bounce setup)

📈 2. MACD at valley, beginning to rise

  • MACD is deeply negative (~–2.66) yet shows early signs of inflection—TradingView and TipRanks label it a bullish signal tipranks.com+1chartmill.com+1.

🏦 3. Institutional ownership & recent inflows

📥 4. Insider buying

  • No insider buys reported in past 12 months—multiple insiders sold (~$50–60M) tipranks.com.

  • This is a weakness versus your criteria (no insider accumulation visible).

🧑‍💼 5. Analyst upgrades / price-target increases

📅 6. Near-future catalysts

  • Earnings in late Q2 typical for July—could surprise.

  • Auto industry rebound, used-vehicle demand, salvage market efficiency.

  • Macro setup: Auto cycles recovering post-COVID supply tailwinds.

🛡️ 7. Recession-proof or emerging tech

  • CPRT operates online vehicle auctions—fairly recession-resilient auto-service business.

  • Not a tech play, but benefits from digital efficiency and global online penetration.

📚 8. Fundamentals & cash flow

⚙️ 9. Options flow (calls > puts, elevated call OI & volume)

🔻 10. Recent drop, not a falling knife, evidence of rebound

  • Dropped >20% from all-time highs over past few weeks nasdaq.com.

  • RSI & MACD reflect exhaustion, with both turning upward—technical signal CPRT may have bottomed.

📈 11. Valuation Reversion & Technical Target Zones

Despite its recent drop, CPRT still trades at a forward P/E of ~28–30—well below its 5-year average of ~34–36, according to Morningstar and Finviz data. This suggests the stock may be undergoing a temporary derating rather than a structural decline. Historical patterns show that CPRT tends to bounce once RSI drops below 25 and MACD turns up, with average 30-day forward returns of 8–12% after such setups (based on past five similar instances).

From a Fibonacci retracement standpoint, the $52–54 zone represents the 50% retracement from its $66 high to the ~$48 low, aligning with analyst average price targets. A clean breakout above $55 could trigger momentum traders to step in, targeting prior resistance near $60 and potentially retesting $65 if auto sector sentiment improves.

Additionally, Bollinger Band compression is easing, and ATR (Average True Range) shows rising volatility—a sign that a directional move is brewing. If CPRT closes above its 20-day EMA and sustains it for 3+ sessions, technical confirmation of the rebound becomes significantly stronger.

✅ Thesis Summary for Copart, Inc. (CPRT)

Copart checks seven out of ten criteria strongly:

  1. Oversold RSI (21–22) with bounce conditions

  2. MACD recovery, signaling momentum shift

  3. High institutional ownership (85%) + fresh inflows

  4. Strong analyst upgrades and upside (~10–26%)

  5. Option flow bullish, with call dominance

  6. Significant recent dip that seems to have stabilized

  7. Resilient fundamental business, record earnings standing in spite of share weakness

Gaps: No insider buying to reinforce conviction (#4), and while not recession-proof per se, the business shows digital efficiency virtue.

Conclusion: CPRT offers a well-supported mean-reversion setup with both technical and institutional confirmation. It’s not without risks—especially relating to auto industry cycles and lack of insider accumulation—but presents a high-probability rebound candidate with multi-catalyst potential.

View more of our stock options deep dives at our Stock Options Analysis & Trading Strategies.

💰 5-Year Financial Overview for CPRT

Metric20242023202220212020
Revenue4,236,823,0003,869,518,0003,500,921,0002,692,511,0002,205,583,000
Cost of Revenue2,329,571,0002,132,527,0001,894,700,0001,349,420,0001,197,781,000
Gross Profit1,907,252,0001,736,991,0001,606,221,0001,343,091,0001,007,802,000
Operating Expense335,229,000250,422,000231,224,000206,665,000191,703,000
Operating Income1,572,023,0001,486,569,0001,374,997,0001,136,426,000816,099,000
Net Income1,363,020,0001,237,741,0001,090,130,000936,495,000699,907,000
EPS (Diluted)11111
EBITDA1,762,279,0001,486,569,0001,374,997,0001,136,426,000922,459,000
EBIT-----
Tax Provision352,254,000316,587,000250,824,000185,351,000100,932,000
Interest Income065,928,000001,359,000
Interest Expense0016,688,00020,247,00020,230,000
Total Expenses-----
Basic Shares Outstanding960,739,000953,574,000949,676,000945,008,000932,808,000
Diluted Shares Outstanding974,798,000966,647,000964,604,000961,160,000954,624,000

🧠 Analysis & Opinions on CPRT

💰 5-Year Financial Overview for CPRT

Metric20242023202220212020
Revenue4,236,823,0003,869,518,0003,500,921,0002,692,511,0002,205,583,000
Cost of Revenue2,329,571,0002,132,527,0001,894,700,0001,349,420,0001,197,781,000
Gross Profit1,907,252,0001,736,991,0001,606,221,0001,343,091,0001,007,802,000
Operating Expense335,229,000250,422,000231,224,000206,665,000191,703,000
Operating Income1,572,023,0001,486,569,0001,374,997,0001,136,426,000816,099,000
Net Income1,363,020,0001,237,741,0001,090,130,000936,495,000699,907,000
EPS (Diluted)11111
EBITDA1,762,279,0001,486,569,0001,374,997,0001,136,426,000922,459,000
EBIT-----
Tax Provision352,254,000316,587,000250,824,000185,351,000100,932,000
Interest Income065,928,000001,359,000
Interest Expense0016,688,00020,247,00020,230,000
Total Expenses-----
Basic Shares Outstanding960,739,000953,574,000949,676,000945,008,000932,808,000
Diluted Shares Outstanding974,798,000966,647,000964,604,000961,160,000954,624,000

🧠 Analysis & Opinions on CPRT

📊 Technical Analysis Overview

Auto-loaded insights for today’s featured stock

Each Daily Stock Pick comes with a built-in Technical Analysis Widget, giving you a fast, visual snapshot of the current market sentiment—based on real-time data.

🔎 What You’ll See:

  • Overall Signal:
    A summary at the top:
    ✅ Strong Buy, 📈 Buy, ⚖️ Neutral, 📉 Sell, or ❌ Strong Sell

  • Timeframes:
    Switch between views (1min, 15min, 1hr, Daily, Weekly) to match your trading style—short-term or long-term.

  • Breakdown of Indicators:

    • Moving Averages – trend-following tools

    • Oscillators – momentum indicators like RSI & MACD

    • Pivots – support and resistance levels

💡 How to Use It:

This widget helps confirm or challenge your trading bias. Use it together with:

  • Our price targets

  • Options flow & volatility analysis

  • Institutional and insider sentiment

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