Capricorn Fund Managers Ltd Increases Holdings in Karooooo Ltd. $KARO

Key Points

• Capricorn Fund Managers Ltd increased its holdings in Karooooo Ltd. by 7.9%, now owning 154,756 shares, which represent 3.6% of its total holdings.
• Karooooo reported $0.47 EPS for the latest quarter, exceeding expectations, with revenue of $70.49 million despite analyst predictions of $1.25 billion.
• The company declared an annual dividend of $1.25 per share, representing a yield of 220.0%, with a high payout ratio of 290.70%.

Capricorn Fund Managers Ltd boosted its position in Karooooo Ltd. (NASDAQ:KARO - Free Report) by 7.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 154,756 shares of the company's stock after acquiring an additional 11,286 shares during the quarter. Karooooo accounts for 3.6% of Capricorn Fund Managers Ltd's holdings, making the stock its 8th largest holding. Capricorn Fund Managers Ltd owned 0.50% of Karooooo worth $7,580,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in the company. Acadian Asset Management LLC boosted its position in Karooooo by 77.9% in the first quarter. Acadian Asset Management LLC now owns 46,454 shares of the company's stock valued at $1,955,000 after buying an additional 20,347 shares in the last quarter. State of Wyoming acquired a new stake in Karooooo in the first quarter valued at approximately $418,000. Finally, Credit Agricole S A boosted its position in Karooooo by 95.5% in the first quarter. Credit Agricole S A now owns 14,049 shares of the company's stock valued at $598,000 after buying an additional 6,861 shares in the last quarter.

Karooooo Stock Performance

Shares of KARO opened at $56.69 on Friday. The company has a current ratio of 1.17, a quick ratio of 1.16 and a debt-to-equity ratio of 0.05. The stock has a market capitalization of $1.75 billion, a P/E ratio of 32.96 and a beta of 1.09. The firm's fifty day simple moving average is $51.62 and its two-hundred day simple moving average is $48.65. Karooooo Ltd. has a 12 month low of $35.88 and a 12 month high of $63.36.

Karooooo (NASDAQ:KARO - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The company reported $0.47 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.02. The business had revenue of $70.49 million for the quarter, compared to analysts' expectations of $1.25 billion. Karooooo had a net margin of 20.23% and a return on equity of 31.48%. Karooooo has set its FY 2026 guidance at 1.760-1.920 EPS. As a group, analysts predict that Karooooo Ltd. will post 1.57 EPS for the current year.

Karooooo Dividend Announcement

The company also recently declared an annual dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 15th were given a dividend of $1.25 per share. The ex-dividend date of this dividend was Friday, August 15th. This represents a yield of 220.0%. Karooooo's dividend payout ratio is 290.70%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Raymond James Financial restated an "outperform" rating and issued a $60.00 target price (up previously from $58.00) on shares of Karooooo in a research report on Thursday, July 24th. Morgan Stanley restated an "overweight" rating and issued a $53.00 target price (up previously from $43.00) on shares of Karooooo in a research report on Thursday, June 26th. UBS Group assumed coverage on shares of Karooooo in a research report on Friday, August 29th. They issued a "buy" rating and a $60.00 target price on the stock. Wall Street Zen lowered shares of Karooooo from a "strong-buy" rating to a "buy" rating in a research report on Friday, August 22nd. Finally, Needham & Company LLC initiated coverage on shares of Karooooo in a report on Wednesday, July 16th. They set a "buy" rating and a $60.00 price target on the stock. Four research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $58.25.

Karooooo Company Profile

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics.

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