Insider Buying Activity at Copart is Massive

Insider buying: Insiders recently have been buying shares of Copart, Inc. (NASDAQ:CPRT). Multiple Form 4 filings with the SEC revealed several purchases made by J. Willis Johnson, Chairman of the Board, and John Lindle, the Special VP of Strategic Growth for the company. Because it’s important to understand the market-beating potential offered by insider trading activity, we’ll take a look at the details.

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Mr. Johnson disclosed that he recently purchased around 227,900 shares of Copart, in two transactions divided into 79,100 shares and 148,800 shares. The price per share for each transaction totaled around $30.70 and $31.10 respectively, and in this way, the total value of the acquisition amounted to 6,990,245 shares (including those owned by the Reba J. Johnson Revocable Trust DTD, of which Johnson is a trustee). Three other filings revealed the purchase of some 28,450 shares by John Lidle. The average price per share of the transactions made by Lidle amounted to $31.70. Following the acquisition, Lidle owns over 14,000 shares of Copart.

For FY2013, which ended on July 31st, Copart posted a net income of over $180 million, slightly below than the result of the previous year, which represented a net income of $182.1 million. The net income per share amounted to $1.44 versus last year’s amount of $1.42. At the same time, Copart’s revenues jumped to over $1 billion in the previous fiscal year, in comparison with $924.2 million of revenue reported for FY2012.

According to Insider Monkey’s database of hedge funds and their equity portfolios, Jana Partners, managed by Barry Rosenstein, held a significant stake in Copart of 8.3 million shares. It is followed by Chuck Royce’s Royce & Associates, which disclosed ownership of 3.2 million shares at the end of last quarter, while Ricky Sandler’s Eminence Capital held around 1.9 million shares.

Check back here for more updates on insider buying activity.

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Disclosure: none