What Makes Copart (CPRT) an Excellent Business?

Madison Investments, an investment advisor, released its “Madison Investors Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund advanced 8.5% compared to an 8.7% return for S&P 500 Index benchmark.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Madison Investors Fund highlighted stocks like Copart, Inc. (NASDAQ:CPRT) in the second quarter 2023 investor letter. Headquartered in Dallas, Texas, Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services providing company. On July 13, 2023, Copart, Inc. (NASDAQ:CPRT) stock closed at $90.80 per share. One-month return of Copart, Inc. (NASDAQ:CPRT) was 4.03%, and its shares gained 56.57% of their value over the last 52 weeks. Copart, Inc. (NASDAQ:CPRT) has a market capitalization of $43.352 billion.

Madison Investors Fund made the following comment about Copart, Inc. (NASDAQ:CPRT) in its second quarter 2023 investor letter:

“In the second quarter, the top five contributors to performance were Alphabet, Copart, Inc. (NASDAQ:CPRT), Alcon, Parker-Hannifin, and PACCAR. Copart is a salvage vehicle auction provider led by an excellent management team. Performance has remained strong despite higher operating costs and lower average selling prices for vehicles. In the intermediate term, we believe considerable internal investments will enable market share gains from their largest competitor. Longer term, we are optimistic on several trends which support more vehicles being sent to Copart’s auctions. The most notable of these trends is greater technology being incorporated into automobiles which substantially increases the cost to repair after an accident, thereby increasing the number of vehicles sent to auction.”

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Copart, Inc. (NASDAQ:CPRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Copart, Inc. (NASDAQ:CPRT) at the end of the first quarter 2023 which was 48 in the previous quarter.

We discussed Copart, Inc. (NASDAQ:CPRT) in another article and shared The London Company Mid Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.