Copart Inc. stock falls as ACV tender offer and HSBC downgrade weigh on sentiment

Copart Inc. stock (ISIN US2172041061) closed at USD 29.66 on Nasdaq on September 17, 2026, down 3.8 percent from the prior session as investors reacted to softer fiscal fourth quarter figures and a new USD 1.9 billion cash tender offer for ACV Auctions.

Quarterly figures and ACV deal reshape expectations

On September 10, 2026, Copart reported fiscal fourth quarter results for the period ended July 31, 2026 and used the earnings call to unveil the acquisition of digital auto marketplace ACV Auctions in an all-cash deal valued at about USD 1.9 billion, according to Yahoo Finance.

For the quarter, revenue grew 2.4 percent year over year to approximately USD 1.2 billion, while gross profit fell 5.5 percent to around USD 481.4 million for the same period, highlighting pressure on profitability despite modest top line growth, as reported by Yahoo Finance.

Net income dropped 17.4 percent compared with the prior year quarter to about USD 327.4 million, and diluted earnings per share came in at USD 0.35 against USD 0.41 a year earlier, illustrating a notable earnings decline at the end of fiscal 2026, according to Yahoo Finance.

Tender offer terms for ACV Auctions

The fourth quarter announcement was accompanied by confirmation that Copart will fund the ACV acquisition entirely with cash on hand, agreeing to pay USD 10.50 per ACV share in cash, which values the digital wholesale marketplace at about USD 1.9 billion and represents a strategic push deeper into dealer to dealer auction channels and vehicle remarketing, as Auto Service World reported on September 18, 2026.

Copart’s tender offer for ACV Auctions was formally launched through its subsidiary Apple Merger Sub Inc. at USD 10.50 per share in cash and is scheduled to expire at 11:59 p.m. Eastern Time on September 30, 2026, unless extended or terminated, with the transaction requiring more than 50 percent of ACV’s outstanding shares to be validly tendered and the expiration of the Hart Scott Rodino antitrust waiting period, as outlined by Hdfcsky on September 18, 2026.

The USD 10.50 offer price represents a 45 percent premium to ACV’s closing stock price on August 10, 2026 and a 41 percent premium to its 30 day volume weighted average price, implying an unaffected ACV share price of roughly USD 7.24 and signaling Copart’s willingness to pay for strategic positioning across the auto remarketing lifecycle, according to Auto Service World.

Analyst downgrades and valuation debate

Alongside the deal and earnings, analyst sentiment has turned more cautious. HSBC downgraded Copart from Buy to Hold and set a USD 36 price target, citing a more challenging near term outlook after the fiscal fourth quarter showed another steep drop in United States insurance related volumes and signs of slowing selling prices, as reported by Yahoo Finance on September 18, 2026.

Freedom Broker also trimmed its Copart price target, reducing it to USD 36 from USD 39 while maintaining a Buy rating, adding to the perception that upside may be more limited until volumes and pricing trends stabilize, according to the same MSN summary on September 18, 2026.

Despite the downgrades, valuation oriented research continues to highlight a gap between Copart’s trading level and intrinsic value estimates. On September 17, 2026, Copart shares fell 3.8 percent to USD 29.66 and were described as trading between a 52 week low of USD 26.81 and a high of USD 47.56, with a proprietary GF Value estimate of USD 56.94 suggesting the stock was about 47.9 percent undervalued at that price, according to GuruFocus.

Stock performance and market metrics

At USD 29.66, Copart stock sits at roughly 64 percent of its 52 week high of USD 47.56, meaning the shares trade at a significant discount to the top of their recent range while the S&P 500 has gained about 17 percent over the same twelve month period, as noted by Trefis on September 18, 2026.

Trefis estimated Copart’s market capitalization at about USD 30.1 billion around that level, indicating that the agreed USD 1.9 billion ACV purchase price represents approximately 6 percent of Copart’s equity value and is therefore a meaningful but manageable commitment in the context of its balance sheet and cash position, according to Trefis.

Per recent market data cited in several analyst roundups, Copart shares declined 3.76 percent in the latest session in response to HSBC’s downgrade and the continued focus on execution risks around the ACV acquisition, with underperformance versus the broader Nasdaq index underscoring that investors currently price in both operational and deal related uncertainty, as summarized by Yahoo Finance on September 18, 2026.

Closing price context for investors

As of the close on September 17, 2026, Copart Inc. stock traded at USD 29.66 on Nasdaq in United States dollars, placing it within a 52 week range of USD 26.81 to USD 47.56 and implying a market capitalization of about USD 30.1 billion at that level. For investors, the key numbers now are the 2.4 percent revenue growth to roughly USD 1.2 billion versus the prior year quarter, the 17.4 percent drop in net income to about USD 327.4 million, and the USD 1.9 billion ACV tender offer at USD 10.50 per share that together frame both risk and potential reward around Copart stock.

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