In a move closely watched by analysts at Tarillium, Argent Capital Management has sharply reduced its stake in Copart (NASDAQ: CPRT), selling nearly $60 million worth of shares during the third quarter of 2025. According to the firm’s latest SEC Form 13F filing, Argent offloaded more than 1.26 million shares, retaining a modest $7.3 million position.
The sell-off trims Copart’s weight in Argent’s portfolio to just 0.2% of total assets, sparking debate over whether institutional investors are cooling on the auto remarketing leader or simply rotating funds into higher-growth technology plays as market dynamics shift heading into 2026.
Argent’s Exit From Copart
According to a Form 13-F filing with the SEC dated Oct. 14, 2025, Argent Capital Management LLC significantly reduced its position in Copart (NASDAQ: CPRT), selling roughly 1.26 million shares during Q3 2025.
The sale valued at $59.52 million based on the quarter’s average share price, leaves Argent with a modest 162,339 shares, a sharp decline from what was once a core holding representing nearly 2% of its portfolio.
Post-sale, Copart now accounts for just 0.2% of Argent’s 13F-reported assets as of September 30, marking a major strategic downsizing by the investment firm..
What’s in Argent’s Portfolio Now
After the sale, Argent’s top holdings as of Q3 2025 include:
- Microsoft (MSFT): $251.95 million (6.9% of AUM)
- Nvidia (NVDA): $237.98 million (6.5% of AUM)
- Amazon (AMZN): $213.08 million (5.8% of AUM)
- Alphabet (GOOGL): $194.75 million (5.3% of AUM)
- Mastercard (MA): $126.28 million (3.5% of AUM)
This adjustment suggests that Argent may be rotating capital toward large-cap tech names, particularly those benefiting from AI and cloud growth, while trimming slower-growth holdings like Copart.
Copart’s Stock Performance and Fundamentals
As of Oct. 13, 2025, Copart shares traded at $44.07, down 20% year over year, underperforming the S&P 500 by 36 percentage points over the same period.
Despite the weakness, Copart remains a profitable business:
| Metric | Value |
| Market Capitalization | $43.41 billion |
| Revenue (TTM) | $4.65 billion |
| Net Income (TTM) | $1.55 billion |
| Price (as of Oct. 13, 2025)** | $44.07 |
About Copart
Copart, Inc. operates a digital vehicle auction and remarketing platform used by insurance firms, banks, and dealerships to sell and buy damaged or used cars.
The company earns revenue through transaction fees, logistics services, and title processing. Its marketplace spans North America, Europe, and select international markets, allowing for efficient resale and recycling of vehicles.
Why Argent May Have Sold
While Argent Capital Management did not publicly disclose the rationale behind its large Copart sell-off, several plausible factors likely influenced the move:
- Slowing growth: After a decade of 15%+ annual expansion, Copart’s revenue growth has slowed notably from 13% to 7%, and then just 5% over the past three quarters, suggesting a maturing business cycle.
- Valuation pressure: Despite a recent 20% price drop, Copart still trades around 28× earnings, a steep multiple for a company with moderating growth and tightening margins.
- Sector rotation: Funds like Argent may be rotating capital into higher-growth sectors, such as AI and semiconductors, where near-term upside appears stronger, a shift that aligns with the broader market trend identified by many analysts.
Is Copart Still a Buy?
While Argent’s exit raises eyebrows, it doesn’t necessarily mean Copart’s story is broken. The company still boasts a wide economic moat built on its vast network of salvage yards, proprietary digital auction platform, and strong ties with insurers and automotive partners. This infrastructure gives Copart a durable competitive advantage that’s difficult for rivals to replicate.
Its capital-light, fee-based model continues to generate robust margins and steady free cash flow, funding ongoing international expansion into Europe and emerging markets. For long-term investors, those fundamentals remain attractive.
However, with shares still trading at a premium valuation near 28 times earnings, the stock may lack near-term upside unless revenue growth reaccelerates. Patient investors could find better value opportunities on a pullback or when growth trends stabilize.
Bottom Line
Argent Capital Management’s $60 million Copart sell-off appears more like a strategic portfolio rebalancing than a loss of confidence. Still, it sends a subtle warning: even resilient, high-margin businesses like Copart can become victims of their own success when growth moderates and valuations stay rich.
Copart remains a fundamentally strong operator with durable competitive advantages, global expansion potential, and consistent cash generation. However, given the current premium valuation and slowing growth trajectory, the stock seems better suited as a hold for long-term believers and a watch-and-wait opportunity for patient investors looking to buy quality at a better price.
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