Argent Capital Managment Dumps $60 Million Worth of Copart (NASDAQ: CPRT) Shares: Is the Stock a Sell?

Argent Capital Management LLC significantly reduced its holding in Copart (CPRT) during Q3 2025, divesting 1,262,984 shares valued at an estimated $59.52 million, according to an SEC filing. This substantial sell-off leaves Argent with a remaining position of 162,339 shares, now representing only 0.2% of its assets under management. The move comes as Copart's stock has underperformed, declining 20% over the past year and exhibiting decelerating revenue growth from 15% to 5% over recent quarters, potentially influencing the fund's decision to nearly liquidate its stake.

Analysis

Argent Capital Management LLC significantly reduced its stake in Copart (CPRT) during Q3 2025, divesting 1,262,984 shares worth an estimated $59.52 million. This move represents a near liquidation, reducing Argent's allocation in CPRT from 2% to a mere 0.2% of its 13F reportable assets under management. Such a substantial reduction by an institutional investor signals a notable shift in conviction.

The divestment coincides with Copart's underperformance, with its shares declining 20% over the year ending October 13, 2025, lagging the S&P 500 by 36 percentage points. Furthermore, CPRT's revenue growth has decelerated sharply, from a 15% annual rate over the last decade to 13%, 7%, and 5% in the preceding three quarters, indicating a slowdown in its core business. Despite the share price drop, Copart still trades at a 28 times earnings multiple, suggesting a potentially stretched valuation given its maturing growth profile.

This institutional selling, particularly from a long-term holder, raises concerns for existing Copart shareholders, as highlighted by the article's "Foolish take." While the exact reasons for Argent's decision are unknown, the decelerating revenue and perceived high valuation likely played a role. The article's analyst, however, maintains a belief in Copart's "wide moat," suggesting a divergence in long-term outlook despite current headwinds.

Key Decisions for Investors

• Given Argent Capital Management's near liquidation of its Copart stake and the stock's significant underperformance, investors should critically re-evaluate their own positions in CPRT.
• Pay close attention to Copart's decelerating revenue growth trajectory and its current 28x earnings multiple, assessing if the valuation remains justified amidst slowing fundamentals.
• Monitor upcoming 13F filings for any additional institutional selling in Copart, as sustained outflows could signal broader concerns about the company's outlook.