CPRT - IAA gains as activist holder calls for sale of company or CEO to be replaced

IAA Inc. (NYSE:IAA) rose 4.5% after shareholder Ancora Holdings called for the salvage vehicle company to either put itself up for sale or replace its CEO. "Given IAA’s underperformance and the fact that the Company’s market capitalization has plummeted by roughly 40% since reporting third quarter earnings in November 2021, the status quo cannot persist," Ancora Holdings wrote in a letter to IAA's board.  Ancora Holdings, which owns about 2% of IAA stock, believes IAA could see $55/share in a potential takeout. Ancora highlights that IAA competitor Copart (NASDAQ:CPRT) trades at roughly 17.5x forward EBITDA and has an approximately $27.5B market capitalization, while IAA trades at 11.2x forward EBITDA and has a $4.9B market capitalization. Separately, IAA announced it expanded its market alliance network in El Salvador with Trans-Auto S.A. de C.V.

For further details see:

IAA gains as activist holder calls for sale of company or CEO to be replaced