Karooooo Ltd. (NASDAQ:KARO) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Karooooo has a “Moderate Buy” consensus rating from seven analysts, with five buys and two holds. The average 12-month price target is $73.50, implying upside from the reported $60 share price.
• The company exceeded quarterly earnings expectations, reporting $0.59 EPS versus the $0.51 consensus on revenue of $96.26 million, with a 17.74% net margin and 32.03% return on equity.
• CEO Isaias Calisto sold 33,833 shares for approximately $2.24 million, while insiders have sold about $17.84 million worth of stock over the past 90 days; insiders still own 74.73% of the company.

Shares of Karooooo Ltd. (NASDAQ:KARO - Get Free Report) have been given a consensus rating of "Moderate Buy" by the seven ratings firms that are covering the company, Marketbeat Ratings reports. Two research analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $73.50.

A number of brokerages have weighed in on KARO. Roth Capital restated a "buy" rating and issued a $74.00 price objective on shares of Karooooo in a report on Friday, July 17th. Needham & Company LLC upped their target price on shares of Karooooo from $60.00 to $70.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Zacks Research cut shares of Karooooo from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 5th. Raymond James Financial raised their price target on shares of Karooooo from $60.00 to $75.00 and gave the stock an "outperform" rating in a research note on Friday, July 17th. Finally, Freedom Capital lowered shares of Karooooo from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 17th.

Karooooo Price Performance

Shares of Karooooo stock opened at $60.00 on Friday. The stock has a market capitalization of $1.85 billion, a P/E ratio of 30.46 and a beta of 0.89. The business has a 50 day simple moving average of $64.11 and a two-hundred day simple moving average of $55.29. Karooooo has a 12 month low of $41.25 and a 12 month high of $68.80. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 1.01.

Karooooo (NASDAQ:KARO - Get Free Report) last issued its quarterly earnings results on Thursday, July 16th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.08. Karooooo had a return on equity of 32.03% and a net margin of 17.74%.The firm had revenue of $96.26 million for the quarter. As a group, analysts predict that Karooooo will post 2.41 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Isaias Calisto sold 33,833 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $66.14, for a total transaction of $2,237,714.62. Following the transaction, the chief executive officer directly owned 17,714,186 shares in the company, valued at $1,171,616,262.04. The trade was a 0.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Over the last 90 days, insiders have sold 277,617 shares of company stock valued at $17,840,247. Company insiders own 74.73% of the company's stock.

Institutional Investors Weigh In On Karooooo

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Public Employees Retirement System of Ohio acquired a new position in Karooooo during the second quarter worth $54,000. Allworth Financial LP purchased a new stake in Karooooo in the 2nd quarter valued at $64,000. R Squared Ltd acquired a new stake in shares of Karooooo in the 1st quarter worth $296,000. DGS Capital Management LLC increased its stake in shares of Karooooo by 83.5% in the 4th quarter. DGS Capital Management LLC now owns 6,961 shares of the company's stock worth $317,000 after acquiring an additional 3,168 shares during the last quarter. Finally, Bank of America Corp DE raised its holdings in shares of Karooooo by 9.5% during the 1st quarter. Bank of America Corp DE now owns 8,798 shares of the company's stock worth $438,000 after acquiring an additional 764 shares during the period.

Karooooo Company Profile

Karooooo Ltd. is a technology company that provides software-as-a-service solutions for connected vehicles, fleet management, and mobility operations. Through its Cartrack business, the company offers vehicle tracking, fleet monitoring, driver safety tools, asset management, and data analytics designed to help businesses improve productivity, security, and operational efficiency.

Cartrack's platform collects and analyzes telematics data, providing customers with real-time visibility into vehicles and other mobile assets.

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