Form 4: Copart CEO Exercises Options, Sells Shares via 10b5-1 Plan
Insider Transaction Report
Copart CEO Jeffrey Liaw executed pre-planned transactions, exercising employee stock options and subsequently selling common stock on January 15, 2026.
Summary
- Jeffrey Liaw, Chief Executive Officer of Copart, Inc., engaged in a series of transactions on January 15, 2026.
- Exercised employee stock options to acquire a total of 49,775 shares of Common Stock.
- These options had exercise prices of $6.78 per share for 5,332 shares and $8.70 per share for 44,443 shares.
- Subsequently sold a total of 25,137 shares of Common Stock at a weighted average price of $40.17 per share.
- The sales were conducted automatically under a Rule 10b5-1 trading plan adopted on April 15, 2025.
- Following these transactions, Liaw beneficially owns 55,970 shares of Common Stock directly.
- Remaining derivative securities (employee stock options) beneficially owned include 267,948 options with an $8.70 exercise price and 11,477 options with a $6.78 exercise price.
Sentiment
Score: 6
Explanation: The sentiment is slightly positive as the CEO exercised a significant number of options, indicating a belief in the company's value, and the sales were pre-planned under a 10b5-1 plan, which is a routine part of executive compensation management. The net cash inflow from the transactions is substantial.
Positives
- The CEO exercised a significant number of options, indicating a belief in the company's long-term value.
- The transactions were executed under a pre-arranged Rule 10b5-1 trading plan, which suggests a systematic approach to managing personal holdings rather than a reaction to new, undisclosed information.
- The sale price of $40.17 per share is significantly higher than the exercise prices of $6.78 and $8.70, indicating a substantial gain for the CEO.
Negatives
- The sale of 25,137 shares by a key executive could be perceived as a reduction in direct ownership, although it is part of a pre-planned strategy.
Future Outlook
The filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.
Industry Context
This Form 4 filing details routine insider transactions by Copart's CEO, which is a common occurrence for executives managing their equity compensation. It does not provide specific insights into broader industry trends or competitive landscape.
Stakeholder Impact
- The transactions represent a routine part of executive compensation and personal financial planning. Shareholders may view the option exercises as a positive signal of management's belief in the company's value, while the sales, being pre-planned, are unlikely to cause significant concern.
Key Dates
| Date | Description |
|---|---|
| 2017-10-10 | Grant date for options with a $6.78 exercise price, with 20% vesting on the first anniversary and the balance monthly over the succeeding 48 months. |
| 2018-10-04 | Grant date for options with an $8.70 exercise price, with 20% vesting on the first anniversary and the balance monthly over the succeeding 48 months. |
| 2025-04-15 | Adoption date of the Rule 10b5-1 trading plan for the reported sales. |
| 2026-01-15 | Date of option exercises and subsequent sales of common stock. |
| 2026-01-16 | Signature date of the reporting person's attorney-in-fact. |
| 2026-10-10 | Expiration date for some employee stock options with a $6.78 exercise price. |
| 2027-10-04 | Expiration date for some employee stock options with an $8.70 exercise price. |
Keywords
Copart, CPRT, Jeffrey Liaw, Insider Trading, Form 4, Stock Options, 10b5-1 Plan, CEO, Share Sale, Beneficial Ownership
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