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 stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Friday.

Other equities research analysts have also recently issued research reports about the company. Raymond James Financial restated an "outperform" rating and set a $60.00 price objective (up previously from $58.00) on shares of Karooooo in a report on Thursday, July 24th. Needham & Company LLC started coverage on Karooooo in a research report on Wednesday, July 16th. They set a "buy" rating and a $60.00 target price on the stock. Morgan Stanley reissued 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 raised 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 issued a Buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $57.67.

Karooooo Stock Up 6.8%

Shares of NASDAQ KARO opened at $50.99 on Friday. The stock has a market cap of $1.58 billion, a PE ratio of 29.65 and a beta of 1.07. The company has a quick ratio of 1.16, a current ratio of 1.17 and a debt-to-equity ratio of 0.05. Karooooo has a 52-week low of $34.00 and a 52-week high of $63.36. The business has a 50-day moving average price of $48.08 and a 200 day moving average price of $46.62.

Karooooo (NASDAQ:KARO - Get Free Report) last posted 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 company had revenue of $70.49 million during the quarter, compared to analysts' expectations 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. Equities research analysts forecast that Karooooo will post 1.57 earnings per share for the current year.

Institutional Trading of Karooooo

Several hedge funds have recently modified their holdings of the company. State of Tennessee Department of Treasury acquired a new stake in Karooooo during the 2nd quarter worth $214,000. BNP Paribas Financial Markets lifted its position in Karooooo by 154.5% during the 2nd 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 in the last quarter. Bank of America Corp DE raised its holdings in shares of Karooooo by 17.2% in the 2nd quarter. Bank of America Corp DE now owns 5,100 shares of the company's stock valued at $250,000 after purchasing an additional 750 shares during the period. Jane Street Group LLC acquired a new position in Karooooo in the 2nd quarter valued at about $269,000. 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.

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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