Do Hedge Funds and Insiders Love Copart, Inc. (NASDAQ:CPRT)?

Is Copart, Inc. (NASDAQ:CPRT) a cheap investment today? Investors who are in the know are in a pessimistic mood. The number of bullish hedge fund bets shrunk by 1 in recent months.

To most traders, hedge funds are perceived as slow, old financial tools of yesteryear. While there are more than 8000 funds trading at present, we at Insider Monkey look at the moguls of this group, around 450 funds. Most estimates calculate that this group oversees most of all hedge funds’ total asset base, and by tracking their top picks, we have come up with a few investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Copart, Inc. (NASDAQ:CPRT)Equally as important, optimistic insider trading activity is another way to parse down the stock market universe. Obviously, there are many incentives for a corporate insider to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this tactic if “monkeys” understand where to look (learn more here).

With these “truths” under our belt, it’s important to take a glance at the latest action regarding Copart, Inc. (NASDAQ:CPRT).

What does the smart money think about Copart, Inc. (NASDAQ:CPRT)?

At the end of the fourth quarter, a total of 21 of the hedge funds we track were bullish in this stock, a change of -5% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Barry Rosenstein’s JANA Partners had the largest position in Copart, Inc. (NASDAQ:CPRT), worth close to $181 million, accounting for 5.1% of its total 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $110 million position; 5.1% of its 13F portfolio is allocated to the company. Remaining hedge funds with similar optimism include Ricky Sandler’s Eminence Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Lee Hobson’s Highside Capital Management.

Because Copart, Inc. (NASDAQ:CPRT) has witnessed falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedgies that elected to cut their entire stakes last quarter. Intriguingly, Kenneth Mario Garschina’s Mason Capital Management said goodbye to the largest investment of the “upper crust” of funds we monitor, valued at close to $55 million in stock., and Robert Rodriguez and Steven Romick of First Pacific Advisors LLC was right behind this move, as the fund dropped about $43 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds last quarter.

How have insiders been trading Copart, Inc. (NASDAQ:CPRT)?

Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past six months. Over the last six-month time frame, Copart, Inc. (NASDAQ:CPRT) has experienced zero unique insiders purchasing, and 10 insider sales (see the details of insider trades here).

With the results exhibited by Insider Monkey’s studies, retail investors should always watch hedge fund and insider trading activity, and Copart, Inc. (NASDAQ:CPRT) is no exception.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!