Karooooo (NASDAQ:KARO) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Karooooo has been downgraded by Wall Street Zen from a "strong-buy" to a "buy" rating, amidst analysts adjusting their price targets on the stock.
• The company reported earnings of $0.47 per share for the last quarter, exceeding expectations of $0.45, with a revenue of $70.49 million compared to anticipated $1.25 billion.
• Karooooo's stock price increased by 6.8%, with the current share price at $50.99 and a market cap of $1.58 billion.

Karooooo (NASDAQ:KARO - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Friday.

Several other equities research analysts have also recently issued reports on the company. Raymond James Financial reiterated an "outperform" rating and issued a $60.00 price objective (up from $58.00) on shares of Karooooo in a report on Thursday, July 24th. Needham & Company LLC began coverage on Karooooo in a report 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 from $43.00) on shares of Karooooo in a report on Thursday, June 26th. Finally, Zacks Research upgraded Karooooo to a "strong-buy" rating in a report on Tuesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating and three have given a Buy rating to the stock. According to MarketBeat.com, Karooooo currently has an average rating of "Buy" and a consensus target price of $57.67.

Karooooo Price Performance

KARO stock traded up $0.91 during trading on Friday, hitting $52.53. The stock had a trading volume of 36,768 shares, compared to its average volume of 58,184. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.17 and a quick ratio of 1.16. Karooooo has a twelve month low of $34.01 and a twelve month high of $63.36. The stock has a market capitalization of $1.62 billion, a P/E ratio of 30.54 and a beta of 1.07. The company's 50-day moving average price is $48.44 and its two-hundred day moving average price is $46.77.

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

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in KARO. Telemark Asset Management LLC acquired a new position in Karooooo in the second quarter valued at approximately $11,028,000. Fiera Capital Corp acquired a new position in Karooooo in the second quarter valued at approximately $5,878,000. Marshall Wace LLP lifted its holdings in 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 acquiring an additional 48,644 shares during the last quarter. Russell Investments Group Ltd. acquired a new position in Karooooo in the second quarter valued at approximately $1,378,000. Finally, Acadian Asset Management LLC lifted its holdings in 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 acquiring an additional 23,251 shares during the last quarter.

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.