Karooooo Ltd. (NASDAQ:KARO) Receives Average Rating of "Buy" from Analysts

Key Points

• Karooooo Ltd. has received a consensus rating of "Buy" from five brokerages, with an average price target of $58.25.
• The company reported a quarterly earnings per share of $0.47, surpassing analyst estimates, and announced an annual dividend of $1.25 per share, equating to a notable dividend yield of 220.0%.
• Institutional investors have shown increasing interest, with significant stakes being added by firms like Squarepoint Ops LLC and BNP Paribas Financial Markets during the second quarter.

Shares of Karooooo Ltd. (NASDAQ:KARO - Get Free Report) have earned an average rating of "Buy" from the five ratings firms that are currently covering the firm, Marketbeat reports. Four investment analysts have rated the stock with a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year price target among analysts that have issued a report on the stock in the last year is $58.25.

KARO has been the topic of a number of analyst reports. Raymond James Financial reiterated an "outperform" rating and issued a $60.00 price target (up from $58.00) on shares of Karooooo in a research report on Thursday, July 24th. Wall Street Zen lowered Karooooo from a "strong-buy" rating to a "buy" rating in a research note on Friday, August 22nd. UBS Group initiated coverage on Karooooo in a research note on Friday. They set a "buy" rating and a $60.00 price objective for the company. Morgan Stanley reiterated an "overweight" rating and set a $53.00 price objective (up from $43.00) on shares of Karooooo in a research note on Thursday, June 26th. Finally, Zacks Research upgraded Karooooo to a "strong-buy" rating in a research note on Tuesday, August 12th.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of KARO. Telemark Asset Management LLC acquired a new stake in shares of Karooooo in the second quarter valued at $11,028,000. Capricorn Fund Managers Ltd increased its stake in shares of Karooooo by 7.9% in the second quarter. Capricorn Fund Managers Ltd now owns 154,756 shares of the company's stock valued at $7,580,000 after buying an additional 11,286 shares in the last quarter. Fiera Capital Corp acquired a new stake in shares of Karooooo in the second quarter valued at $5,878,000. Acadian Asset Management LLC increased its stake in shares of Karooooo by 50.1% in the second quarter. Acadian Asset Management LLC now owns 69,705 shares of the company's stock valued at $3,391,000 after buying an additional 23,251 shares in the last quarter. Finally, Marshall Wace LLP increased its stake in shares of Karooooo by 699.1% in the second quarter. Marshall Wace LLP now owns 55,602 shares of the company's stock valued at $2,723,000 after buying an additional 48,644 shares in the last quarter.

Karooooo Stock Performance

Shares of NASDAQ KARO traded down $0.60 during trading hours on Friday, reaching $52.05. The stock had a trading volume of 58,616 shares, compared to its average volume of 51,188. The business's fifty day moving average is $48.66 and its two-hundred day moving average is $46.83. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.17 and a quick ratio of 1.16. The company has a market cap of $1.61 billion, a price-to-earnings ratio of 30.26 and a beta of 1.08. Karooooo has a twelve month low of $34.01 and a twelve month high of $63.36.

Karooooo (NASDAQ:KARO - Get Free Report) last issued its 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 during the quarter, compared to analyst estimates of $1.25 billion. Karooooo had a return on equity of 31.48% and a net margin of 20.23%. Karooooo has set its FY 2026 guidance at 1.760-1.920 EPS. As a group, research analysts expect that Karooooo will post 1.57 EPS for the current year.

Karooooo Dividend Announcement

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

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.