Shares of Copart (NASDAQ: CPRT), a global leader in online vehicle auctions, plummeted 5.04% in Monday's trading session, following a downgrade from a major Wall Street firm.

JP Morgan analysts cut their target price for Copart from $50 to $45, signaling reduced confidence in the company's near-term prospects. This downgrade appears to have triggered a sell-off, with Copart emerging as one of the worst performers among Nasdaq 100 stocks. By 11:01 a.m. EST, Copart's stock was down 4.5%, placing it among the bottom five performers in the index.

The sharp decline comes despite Copart's strong financial position and its dominant role in the vehicle auction market. The company recently reported solid fiscal year 2025 results, with revenue growth of 9.7% to $4.65 billion and a 13.7% increase in net income. However, investors seem to be reassessing the stock's valuation in light of the lowered price target, potentially factoring in concerns about the broader economic environment and its impact on the used car market.