Copart (CPRT) shares plummeted 5.06% in Friday's pre-market trading session, as investors reacted to the company's fourth-quarter results and subsequent analyst downgrades. The sharp decline follows a 3.2% drop in the stock's value during after-hours trading on Thursday, indicating a continued negative sentiment among market participants.

The significant sell-off appears to be primarily driven by Copart's disappointing fourth-quarter financial performance, which was released after the market close on Thursday. While specific details of the results were not provided, the market's reaction suggests that the company's earnings or revenue may have fallen short of analysts' expectations, leading to a reassessment of Copart's near-term growth prospects.

Adding to the downward pressure on Copart's stock, several prominent financial institutions have revised their outlook on the company. Stephens & Co. maintained their Equal-Weight rating but cut their price target from $50 to $46, reflecting a more cautious stance on Copart's valuation. Similarly, JP Morgan reduced its target price from $55 to $50, further dampening investor enthusiasm. These downgrades from Wall Street analysts have likely contributed to the heightened selling pressure, as investors adjust their positions in light of the revised financial projections.