Short Interest in Karooooo Ltd. (NASDAQ:KARO) Grows By 41.4%

Key Points

• Karooooo Ltd. experienced a significant increase in short interest, rising 41.4% in August, bringing total short interest to 48,500 shares.
• Institutional interest has grown, with funds like Squarepoint Ops LLC increasing their stake by 6.8% and several others acquiring new positions.
• Wall Street analysts generally have a positive outlook, with an average price target of $58.25 and multiple analysts rating it as a "strong buy" or "buy."

Karooooo Ltd. (NASDAQ:KARO - Get Free Report) was the recipient of a significant growth in short interest in August. As of August 15th, there was short interest totaling 48,500 shares, a growth of 41.4% from the July 31st total of 34,300 shares. Approximately 0.8% of the shares of the company are short sold. Based on an average daily volume of 78,000 shares, the short-interest ratio is currently 0.6 days. Based on an average daily volume of 78,000 shares, the short-interest ratio is currently 0.6 days. Approximately 0.8% of the shares of the company are short sold.

Karooooo Price Performance

Karooooo stock traded down $0.63 during mid-day trading on Friday, hitting $54.76. 29,060 shares of the company traded hands, compared to its average volume of 46,274. Karooooo has a one year low of $35.51 and a one year high of $63.36. The stock has a market cap of $1.69 billion, a price-to-earnings ratio of 31.84 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 stock has a fifty day moving average price of $49.63 and a 200-day moving average price of $47.24.

Karooooo (NASDAQ:KARO - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The company reported $0.47 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.02. The firm had revenue of $70.49 million during 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, equities analysts predict that Karooooo will post 1.57 earnings per share for the current fiscal year.

Karooooo Announces Dividend

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

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on KARO shares. Needham & Company LLC started coverage on shares of Karooooo in a research note on Wednesday, July 16th. They issued a "buy" rating and a $60.00 target price for the company. Morgan Stanley restated an "overweight" rating and issued a $53.00 price objective (up from $43.00) on shares of Karooooo in a research report on Thursday, June 26th. Zacks Research lowered shares of Karooooo from a "strong-buy" rating to a "hold" rating in a research report on Thursday. 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, Raymond James Financial restated an "outperform" rating and issued a $60.00 price objective (up from $58.00) on shares of Karooooo in a research report on Thursday, July 24th. Four research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $58.25.

Institutional Investors Weigh In On Karooooo

A number of hedge funds have recently made changes to their positions in the business. Squarepoint Ops LLC lifted its holdings in shares of Karooooo by 6.8% in the 4th quarter. Squarepoint Ops LLC now owns 9,494 shares of the company's stock worth $429,000 after acquiring an additional 602 shares during the last quarter. Lazard Asset Management LLC increased its stake in shares of Karooooo by 17.5% in the fourth quarter. Lazard Asset Management LLC now owns 4,961 shares of the company's stock worth $223,000 after buying an additional 740 shares during the period. Bank of America Corp DE increased its stake in shares of Karooooo by 17.2% in the second quarter. Bank of America Corp DE now owns 5,100 shares of the company's stock worth $250,000 after buying an additional 750 shares during the period. New York State Common Retirement Fund increased its stake in shares of Karooooo by 465.6% in the second quarter. New York State Common Retirement Fund now owns 3,258 shares of the company's stock worth $160,000 after buying an additional 2,682 shares during the period. Finally, BNP Paribas Financial Markets increased its stake in shares of Karooooo by 154.5% in the second quarter. BNP Paribas Financial Markets now owns 5,045 shares of the company's stock worth $247,000 after buying an additional 3,063 shares during the period.

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.