A rough estimation - in the last 2 years he exercised $146M worth of options and sold $283M worth of stock. If he has 4% ownership - roughly $400M, then the amount he has sold is not negligible at all.
The marketcap is around ~40B instead of ~30B that you wrote (in the Financials, later you wrote it correctly).
According to the latest annual report they own 16,000 acres of land worldwide. Is it possible that they carry the land on they balance sheet amortized and additional hidden value exists there?
It's not a great sign for investors at all. But I guess he recognises that the stock is overvalued, at least vs. historical multiples. And he has better insight than anyone about the future of the business. That said, I'm not sure if there are personal reasons for selling etc. But I do agree with him that the stock is not fairly priced atm.
Yes, a typo, should've been 40B.
It is possible, but I would assume that if this was the case, and the land was worth more than the BS says, that the CEO would be aware and not sell as much as he have.
Could be that this one is constently overvalued. I don't have made the number myself. Do you have a few minutes to calculate the Net Present Value as it was end of 2018, 2019, 2020, 2021 and 2022. Same assumptions but just different Free Cash Flow number at the start. Could be interesting.
The best businesses remain highly rated for a long time. However, Copart has been at a much more attractive multiple in the past, while the business was still very good.
Have you ever heard of a stock split? It means that they double the amount of shares in a company, so naturally, the price becomes cut in half per share. But all shareholders get 1 additional share for every share they held before the split. It is quite normal, it is not long since Apple, Google, and Amazon did the same.
It is interesting to see though that the CEO is constantly selling his stock. https://finviz.com/insidertrading.ashx?oc=1239685&tc=7
A rough estimation - in the last 2 years he exercised $146M worth of options and sold $283M worth of stock. If he has 4% ownership - roughly $400M, then the amount he has sold is not negligible at all.
The marketcap is around ~40B instead of ~30B that you wrote (in the Financials, later you wrote it correctly).
According to the latest annual report they own 16,000 acres of land worldwide. Is it possible that they carry the land on they balance sheet amortized and additional hidden value exists there?
Good points on the CEO selling activity.
It's not a great sign for investors at all. But I guess he recognises that the stock is overvalued, at least vs. historical multiples. And he has better insight than anyone about the future of the business. That said, I'm not sure if there are personal reasons for selling etc. But I do agree with him that the stock is not fairly priced atm.
Yes, a typo, should've been 40B.
It is possible, but I would assume that if this was the case, and the land was worth more than the BS says, that the CEO would be aware and not sell as much as he have.
Could be that this one is constently overvalued. I don't have made the number myself. Do you have a few minutes to calculate the Net Present Value as it was end of 2018, 2019, 2020, 2021 and 2022. Same assumptions but just different Free Cash Flow number at the start. Could be interesting.
Yes, that is a good point.
The best businesses remain highly rated for a long time. However, Copart has been at a much more attractive multiple in the past, while the business was still very good.
Since this article was published COPART lost already 51% congrats
It is basically flat since August.
Have you ever heard of a stock split? It means that they double the amount of shares in a company, so naturally, the price becomes cut in half per share. But all shareholders get 1 additional share for every share they held before the split. It is quite normal, it is not long since Apple, Google, and Amazon did the same.