Here’s Why Copart (CPRT) Lagged the Market
Madison Investments, an investment advisor, released its “Madison Large Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) increased 3.1%, compared to a 10.9% gain for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second quarter 2025 investor letter, Madison Large Cap Fund 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 -3.54%, and its shares lost 12.37% of their value over the last 52 weeks. On July 21, 2025, Copart, Inc. (NASDAQ:CPRT) stock closed at $46.03 per share, with a market capitalization of $44.508 billion.
Madison Large Cap Fund stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its second quarter 2025 investor letter:
"The bottom five detractors for the quarter were Fiserv, Arch Capital Group, Copart, Inc. (NASDAQ:CPRT), Alcon, and Progressive. Shares in Copart lagged the market following quarterly results that showed an uncharacteristic disappointment in volume growth. We believe this was due to temporary factors and the stock was simply coming down from an elevated valuation multiple."
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 potential of Copart, Inc. (NASDAQ:CPRT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.
In another article, we covered Copart, Inc. (NASDAQ:CPRT) and shared Wedgewood Partners' views on the company. 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.
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