Karooooo (NASDAQ:KARO) Coverage Initiated at Weiss Ratings

Key Points

• Weiss Ratings has initiated coverage of Karooooo (NASDAQ: KARO) with a "hold (c+)" rating, while Morgan Stanley has upgraded its target price to $53.00 and maintained an "overweight" rating.
• Karooooo's stock price declined by 4.2% to $45.15 following its latest earnings report, where it reported earnings of $0.47 per share, slightly exceeding the consensus estimate.
• The company has attracted significant interest from hedge funds, with Acadian Asset Management increasing its stake by 77.9% in the first quarter of the year.

Equities researchers at Weiss Ratings initiated coverage on shares of Karooooo (NASDAQ:KARO - Get Free Report) in a report released on Thursday,Weiss Ratings reports. The brokerage set a "hold (c+)" rating on the stock.

A number of other brokerages also recently commented on KARO. Morgan Stanley reissued 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 cut shares of Karooooo from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 11th. Needham & Company LLC initiated coverage on shares of Karooooo in a report on Wednesday, July 16th. They issued a "buy" rating and a $60.00 target price for the company. 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 report on Thursday, July 24th. Finally, Wall Street Zen cut shares of Karooooo from a "strong-buy" rating to a "buy" rating in a report on Friday, August 22nd. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, Karooooo has a consensus rating of "Moderate Buy" and an average target price of $58.25.

Karooooo Stock Down 4.2%

KARO traded down $2.00 during trading hours on Thursday, hitting $45.15. 59,093 shares of the company's stock were exchanged, compared to its average volume of 51,505. Karooooo has a 12-month low of $35.88 and a 12-month high of $63.36. The firm has a 50 day moving average of $52.76 and a 200 day moving average of $49.22. The firm has a market cap of $1.39 billion, a P/E ratio of 25.38 and a beta of 1.09. The company has a current ratio of 1.17, a quick ratio of 1.16 and a debt-to-equity ratio of 0.05.

Karooooo (NASDAQ:KARO - Get Free Report) last announced its earnings results on Tuesday, October 14th. The company reported $0.47 earnings per share for the quarter, topping the consensus estimate of $0.46 by $0.01. Karooooo had a net margin of 19.90% and a return on equity of 31.32%. The firm had revenue of $76.16 million for the quarter, compared to the consensus estimate of $73.45 million. Karooooo has set its FY 2026 guidance at 1.830-2.000 EPS. Analysts predict that Karooooo will post 1.57 EPS for the current fiscal year.

Institutional Trading of Karooooo

Hedge funds have recently made changes to their positions in the company. Acadian Asset Management LLC lifted its stake in shares of Karooooo by 77.9% in the 1st quarter. Acadian Asset Management LLC now owns 46,454 shares of the company's stock worth $1,955,000 after acquiring an additional 20,347 shares during the period. Capricorn Fund Managers Ltd boosted its holdings in Karooooo by 7.9% during the second quarter. Capricorn Fund Managers Ltd now owns 154,756 shares of the company's stock worth $7,580,000 after buying an additional 11,286 shares in the last quarter. State of Wyoming acquired a new position in Karooooo during the first quarter worth about $418,000. Credit Agricole S A increased its holdings 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. Finally, Squarepoint Ops LLC lifted its position in shares of Karooooo by 26.1% during the 2nd quarter. Squarepoint Ops LLC now owns 12,163 shares of the company's stock valued at $596,000 after acquiring an additional 2,518 shares during the period.

About Karooooo

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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