5 Best Used Car Stocks To Buy According to Hedge Funds

1. Copart, Inc. (NASDAQ:CPRT)

Market cap as of March 24: $33.28 Billion
Number of Hedge Fund Holders: 48

Copart, Inc. (NASDAQ:CPRT) offers vehicle remarketing and online auctions services in 11 countries including the United States, Canada, and the United Kingdom. Its online platform utilizes innovative technology to connect buyers and sellers from all over the globe. Copart, Inc. (NASDAQ:CPRT) is headquartered in Dallas, Texas, and runs over 200 locations with a daily inventory of more than 175,000 vehicles up for auction. The main clients of Copart are insurance companies which aim to sell their damaged vehicles at the maximum value possible.

Guggenheim analyst Jonathan Elias increased his price target on Copart, Inc. (NASDAQ:CPRT) to $82 from $75 and maintained a ‘Buy’ rating on the shares on February 22. Steve Cohen’s Point72 Asset Management is the leading shareholder of Copart, Inc. (NASDAQ:CPRT), with a stake worth over $155.62 million.

According to Insider Monkey’s database, 48 hedge funds were long Copart, Inc. (NASDAQ:CPRT) as of Q4 2022. The total value of their holdings was $799.07 million. Copart, Inc. (NASDAQ:CPRT) tops the list of 10 best used car stocks to buy according to hedge funds.

Andvari Associates commented on Copart, Inc. (NASDAQ:CPRT) in their Q4 2022 investor letter:

“Willis Johnson founded Copart, Inc. (NASDAQ:CPRT) as an auto salvage business in 1982 and the company is now the largest auctioneer of damaged and totaled vehicles in the world. It sells more than 3.5 million vehicles per year and operates more than 250 locations in 11 countries. It lists 250,000 vehicles for auction every day.

Copart’s primary customers are auto insurance companies. This would be the GEICOs, the Progressives, the State Farms, and many others around the world. When a policy holder’s car is damaged, the insurance company makes a determination of whether to repair the car or to consider it totaled and pay the owner the value of the car. The insurance company will total the car if repair costs outweigh the preaccident value of the car. If they total the car, the insurance company writes a check for the pre-accident value of the car and then uses Copart to auction the car to salvage any remaining value…” (Click here to read the full text)

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