On September 14, Copart rose 5.26% in regular trading, trading at $31.525/share, with turnover of $123 million. The rally was driven by a combination of better-than-expected quarterly revenue, a major acquisition announcement, and an analyst upgrade.

Copart reported fiscal Q4 revenue of $1.152 billion, up 2.4% year-over-year, surpassing the consensus estimate of $1.144 billion. However, earnings per share came in at $0.35, missing the $0.38 analyst estimate and down from $0.41 in the prior-year period, with net income declining 17.4% to $327.4 million. Operating expenses rose 10.0%, with facility operating costs climbing 7.7% to $450.7 million.

Simultaneously, the company announced an all-cash tender offer to acquire online vehicle auction platform ACV Auctions at $10.50 per share, valuing the deal at approximately $1.9 billion. The transaction will be funded with cash on hand, is expected to close by year-end, and ACV will operate as an independent Copart subsidiary. If ACV terminates the deal under certain conditions, a $57.7 million breakup fee applies.

Additionally, Barrington upgraded Copart from Market Perform to Outperform with a $40 price target, further lifting market sentiment.

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