Copart (CPRT) Fell as It Missed Revenue Expectations

Conestoga Capital Advisors, an asset management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter began with a historically poor start but gained momentum later as tariff fears subsided and market volatility dropped precipitously. Conestoga Mid Cap Composite returned 3.46% net-of-fees in the quarter, trailing the Russell Mid Cap Growth Index’s 18.20% return. After a strong first quarter in 2025, investor enthusiasm shifted towards high-beta and AI stocks following the “Liberation Day” announcements, creating a narrow leadership group that posed challenges for the Mid Cap Strategy in the second quarter. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Copart, Inc. (NASDAQ:CPRT). Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services company. The one-month return of Copart, Inc. (NASDAQ:CPRT) was -4.85%, and its shares lost 8.54% of their value over the last 52 weeks. On July 25, 2025, Copart, Inc. (NASDAQ:CPRT) stock closed at $46.69 per share, with a market capitalization of $45.15 billion.

Conestoga Capital Advisors stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its second quarter 2025 investor letter:

“Copart, Inc. (NASDAQ:CPRT) is a leading provider of salvage auctions in the U.S., Canada and the United Kingdom. Shares sold off sharply after missing fiscal 3Q revenue estimates. This is the second quarter in a row of softer than expected unit volume growth due, in large part, to some drivers electing to reduce insurance coverage which results in lower accident claims volume. We believe this headwind is temporary as insurance carriers have finally priced their way back to profitability which was pressured during the pandemic.”

Why Copart Inc. (CPRT) Crashed On Friday

A busy car auction being held at a leading car dealership, buyers and sellers engaging in active bidding.

Copart, Inc. (NASDAQ:CPRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Copart, Inc. (NASDAQ:CPRT) at the end of the first quarter, which was 53 in the previous quarter. While we acknowledge the risk and potential of Copart, Inc. (NASDAQ:CPRT) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Copart, Inc. (NASDAQ:CPRT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Copart, Inc. (NASDAQ:CPRT) and shared the list of best extremely profitable stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.