Copart: Buybacks Are Here

RB Equity1.64K FollowersFollow5ShareSavePlay(12min)Comment(1)SummaryCopart has resumed opportunistic share buybacks, deploying $500 million, reflecting disciplined capital allocation and a rational approach to shareholder returns.CPRT’s core moat remains intact; the duopoly structure, dominant marketplace, and international expansion underpin the long-term compounding thesis.Recent volume softness is tied to temporary insurance client share shifts, not structural weaknesses or loss of competitive advantage.Management prioritizes buybacks over M&A, signaling confidence in intrinsic value and prudent stewardship of a growing cash pile.MoMo Productions/DigitalVision via Getty Images Back in September of last year, I argued that Copart (CPRT) was due to restart their buyback activity. I thought that the valuation back then, coupled with a fast-growing cash pile, made the case for buybacksThis article was written byRB Equity1.64K FollowersFollowStriving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.Analyst’s Disclosure: I/we have a beneficial long position in the shares of CPRT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.