Copart’s auction volume growth decelerated in the fourth quarter as an increase in under- and uninsured motorists and shifting market share among insurance carriers reduced the number of salvage vehicles processed. Lower unit volumes directly pressured revenue, marking a departure from the company’s prior multi-year growth trend.

This volume slowdown positioned Copart among the Madison Large Cap Fund’s bottom five detractors for Q4, with the fund appreciating 3.43% versus the S&P 500’s 2.65% return. Copart’s weaker performance relative to mega-cap technology and other high-momentum names highlighted its recent growth challenges.

On February 24, Copart shares closed at $35.28, down 13.15% over the previous month and 37.30% year-over-year, reflecting investor concern over slowing throughput. The company maintains a market capitalization of $34.15 billion, one of the largest in the online vehicle auction sector.

Despite the near-term volume headwinds, Copart has delivered healthy earnings growth in recent years and retains leading market share in salvage vehicle auctions. Management’s ability to navigate insurance trends and restore unit growth will be critical to reversing the recent stock decline.