Karooooo (NASDAQ:KARO) Sees Large Volume Increase on Strong Earnings

Key Points

• Karooooo shares rose on heavy volume after the company reported stronger-than-expected quarterly results, with trading volume up 25% from the prior session and the stock closing higher.
• The company posted EPS of $0.59, beating estimates of $0.51, on revenue of $96.26 million, and it also raised its FY 2027 guidance to 2.334–2.425 EPS.
• Karooooo announced an increased annual dividend of $1.50 versus $1.25 previously, while analysts currently hold a Buy consensus with a target price of $63.25.

Karooooo Ltd. (NASDAQ:KARO - Get Free Report) shares saw strong trading volume on Thursday after the company announced better than expected quarterly earnings. 93,047 shares changed hands during trading, an increase of 25% from the previous session's volume of 74,276 shares.The stock last traded at $61.8730 and had previously closed at $58.58.

The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.51 by $0.08. Karooooo had a net margin of 18.07% and a return on equity of 31.26%. The business had revenue of $96.26 million during the quarter. Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS.

Karooooo Increases Dividend

The firm also recently announced an annual dividend, which will be paid on Monday, July 27th. Stockholders of record on Friday, July 17th will be issued a $1.50 dividend. The ex-dividend date is Friday, July 17th. This is an increase from Karooooo's previous annual dividend of $1.25. This represents a dividend yield of 347.0%. Karooooo's dividend payout ratio is currently 81.08%.

Analysts Set New Price Targets

KARO has been the topic of a number of research analyst reports. Zacks Research upgraded Karooooo from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 7th. Weiss Ratings reissued a "buy (b-)" rating on shares of Karooooo in a research note on Friday, April 24th. Roth Capital restated a "buy" rating and set a $68.00 price objective on shares of Karooooo in a research report on Thursday, May 14th. Needham & Company LLC lifted their target price on Karooooo from $60.00 to $70.00 and gave the company a "buy" rating in a research note on Tuesday. Finally, Wall Street Zen lowered shares of Karooooo from a "buy" rating to a "hold" rating in a research report on Sunday, June 21st. One analyst has rated the stock with a Strong Buy rating and five have assigned a Buy rating to the stock. Based on data from MarketBeat.com, Karooooo presently has a consensus rating of "Buy" and a consensus target price of $63.25.

Institutional Trading of Karooooo

Several hedge funds and other institutional investors have recently modified their holdings of KARO. Fideuram Asset Management Ireland dac acquired a new position in Karooooo in the 4th quarter worth about $80,000. Royal Bank of Canada grew its stake in shares of Karooooo by 852.9% in the 4th quarter. Royal Bank of Canada now owns 2,954 shares of the company's stock valued at $135,000 after buying an additional 2,644 shares in the last quarter. Quantbot Technologies LP acquired a new position in Karooooo in the second quarter worth approximately $156,000. New York State Common Retirement Fund increased its holdings in 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 last quarter. Finally, State of Tennessee Department of Treasury bought a new position in Karooooo during the second quarter valued at approximately $214,000.

Karooooo Price Performance

The stock has a market capitalization of $1.91 billion, a price-to-earnings ratio of 33.67 and a beta of 0.89. The stock's 50 day simple moving average is $49.60 and its 200-day simple moving average is $48.59. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.06 and a quick ratio of 1.05.

Karooooo Company Profile

Karooooo Ltd is a global provider of telematics software-as-a-service solutions for vehicle and fleet management. Through its flagship platform, the company delivers real-time GPS tracking, stolen vehicle recovery and driver behaviour analytics, enabling commercial fleets and automotive insurers to optimise operations, increase safety and reduce costs.

Karooooo's SaaS platform integrates proprietary hardware devices with cloud-based analytics and mobile applications. Customers gain access to live vehicle location data, engine diagnostics, route planning tools and customizable reporting dashboards.

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