Copart CEO sells 27,745 shares for $846,000

Copart CEO Jeffrey Liaw sold 27,745 shares on July 28 for $846,000, trimming his stake by 22%. The sale was executed under a Rule 10b5-1 trading plan, a pre-scheduled move designed to avoid any suggestion of insider dealing. The shares were priced at a weighted average of $30.49, slightly below that day’s closing price of $30.69, according to an SEC filing.

Insider transactions are common but often scrutinized, so context matters. Liaw’s plan was adopted in April 2025, meaning the sale was months in the making. Even after the trade, he still holds 99,641 shares, keeping a meaningful stake in the company. Analysts say Rule 10b5-1 plans are routine for executives looking to diversify or meet personal financial goals without timing the market.

Copart is a global leader in online vehicle auctions, operating in 11 countries with a $27.4 billion market cap. The company reported $4.6 billion in revenue over the past 12 months and $1.6 billion in net income, showing strong profitability. But growth has slowed—revenue rose just 1% year-over-year, down from roughly 10% in prior years. Despite that, earnings per share climbed nearly 6% to $1.61, thanks to its fee-based model.

Investors shouldn’t read the sale as a red flag. The stock’s forward price-to-earnings ratio is 17.7, lower than historic levels, potentially offering better value now that growth has moderated. Analysts expect modest gains ahead, though Copart didn’t make The Motley Fool’s latest “10 best stocks” list—stocks like Netflix and Nvidia have delivered outsized returns when previously recommended. Still, with a solid business and disciplined management, Copart remains a key player in vehicle remarketing, even as the market evolves.