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

Key Points

• Karooooo Ltd. has received a consensus rating of "Moderate Buy" from analysts, with one hold rating and four buy ratings among the firms covering the stock.
• The average 1-year target price for Karooooo's stock is $58.25, with several analysts issuing price objectives ranging from $53.00 to $60.00.
• Karooooo recently declared an annual dividend of $1.25 per share, resulting in a dividend yield of 220.0%, although the company's dividend payout ratio stands at 290.70%.

Karooooo Ltd. (NASDAQ:KARO - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the five research firms that are presently covering the stock, Marketbeat reports. One analyst has rated the stock with a hold rating and four have issued a buy rating on the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $58.25.

Several research analysts have weighed in on the stock. Needham & Company LLC assumed coverage on shares of Karooooo in a research note on Wednesday, July 16th. They issued a "buy" rating and a $60.00 price objective on the stock. Morgan Stanley reiterated an "overweight" rating and issued a $53.00 price objective (up previously from $43.00) on shares of Karooooo in a research note on Thursday, June 26th. Raymond James Financial reiterated an "outperform" rating and issued a $60.00 price objective (up previously from $58.00) on shares of Karooooo in a research note on Thursday, July 24th. UBS Group started coverage on shares of Karooooo in a research note on Friday, August 29th. They issued a "buy" rating and a $60.00 price objective on the stock. Finally, Wall Street Zen lowered shares of Karooooo from a "strong-buy" rating to a "buy" rating in a research note on Friday, August 22nd.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Telemark Asset Management LLC acquired a new position in Karooooo in the 2nd quarter valued at $11,028,000. Capricorn Fund Managers Ltd grew its stake in Karooooo by 7.9% in the 2nd 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 during the last quarter. Fiera Capital Corp acquired a new position in Karooooo in the 2nd quarter valued at $5,878,000. Acadian Asset Management LLC grew its stake in Karooooo by 50.1% in the 2nd 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 during the last quarter. Finally, Marshall Wace LLP grew its stake in Karooooo by 699.1% in the 2nd 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 during the last quarter.

Karooooo Price Performance

Karooooo stock opened at $56.70 on Tuesday. The firm has a market cap of $1.75 billion, a PE ratio of 32.97 and a beta of 1.08. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.16 and a current ratio of 1.17. The firm's 50 day moving average price is $50.27 and its two-hundred day moving average price is $47.75. Karooooo has a twelve month low of $35.51 and a twelve month high of $63.36.

Karooooo (NASDAQ:KARO - Get Free Report) last released its quarterly earnings data on Tuesday, July 22nd. The company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.45 by $0.02. The firm had revenue of $70.49 million for the quarter, compared to analyst estimates 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. On average, research analysts predict that Karooooo will post 1.57 EPS for the current fiscal year.

Karooooo Dividend Announcement

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

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