Karooooo (NASDAQ:KARO) Sets New 12-Month High - Still a Buy?

Key Points

• Karooooo reached a new 52-week high, trading as high as $67.14 and closing its latest session at $65.91. The stock is up sharply above its 50-day and 200-day moving averages.
• Analyst sentiment remains positive: Karooooo has an average “Buy” rating and a $73.50 price target, with recent targets ranging from $70 to $75.
• The company beat quarterly earnings expectations, reporting $0.59 in EPS versus $0.51 forecast, and increased its annual dividend to $1.50 per share. However, insiders—including the CEO—have sold shares recently, while insiders still own 74.73% of the stock.

Karooooo Ltd. (NASDAQ:KARO - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $67.14 and last traded at $65.91, with a volume of 239549 shares trading hands. The stock had previously closed at $64.69.

Wall Street Analyst Weigh In

KARO has been the subject of a number of recent analyst reports. Roth Capital reaffirmed a "buy" rating and set a $74.00 target price on shares of Karooooo in a research report on Friday, July 17th. Needham & Company LLC lifted their target price on Karooooo from $60.00 to $70.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Wall Street Zen upgraded shares of Karooooo from a "hold" rating to a "buy" rating in a research note on Saturday, August 1st. UBS Group reiterated a "buy" rating and issued a $75.00 price objective on shares of Karooooo in a research note on Thursday, July 16th. Finally, Raymond James Financial upped their target price on shares of Karooooo from $60.00 to $75.00 and gave the stock an "outperform" rating in a report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Karooooo presently has an average rating of "Buy" and an average target price of $73.50.

Karooooo Stock Up 1.9%

The firm's 50-day simple moving average is $54.48 and its 200 day simple moving average is $50.50. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.01 and a current ratio of 1.02. The company has a market cap of $2.04 billion, a P/E ratio of 33.46 and a beta of 0.85.

Karooooo (NASDAQ:KARO - Get Free Report) last issued its earnings results on Thursday, July 16th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.08. Karooooo had a return on equity of 32.03% and a net margin of 17.74%.The firm had revenue of $96.26 million for the quarter. On average, research analysts forecast that Karooooo Ltd. will post 2.41 earnings per share for the current fiscal year.

Karooooo Increases Dividend

The firm also recently announced an annual dividend, which was paid on Monday, July 27th. Shareholders of record on Friday, July 17th were issued a dividend of $1.50 per share. This is a boost from Karooooo's previous annual dividend of $1.25. This represents a yield of 239.0%. The ex-dividend date was Friday, July 17th. Karooooo's dividend payout ratio is presently 76.14%.

Insider Activity

In related news, CEO Isaias Jose Calisto sold 31,897 shares of the business's stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $64.43, for a total value of $2,055,123.71. Following the completion of the transaction, the chief executive officer directly owned 17,838,112 shares in the company, valued at approximately $1,149,309,556.16. The trade was a 0.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In the last three months, insiders sold 144,345 shares of company stock valued at $9,258,554. 74.73% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Karooooo

A number of large investors have recently added to or reduced their stakes in the company. DGS Capital Management LLC grew its holdings in shares of Karooooo by 5.7% during the first quarter. DGS Capital Management LLC now owns 7,359 shares of the company's stock worth $367,000 after buying an additional 398 shares in the last quarter. Renaissance Technologies LLC raised its position in Karooooo by 1.4% during the first quarter. Renaissance Technologies LLC now owns 27,987 shares of the company's stock worth $1,395,000 after acquiring an additional 400 shares in the last quarter. Lazard Asset Management LLC raised its holdings in shares of Karooooo by 7.5% in the 3rd quarter. Lazard Asset Management LLC now owns 6,139 shares of the company's stock valued at $351,000 after purchasing an additional 430 shares during the period. Bank of America Corp DE lifted its position 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 valued at $250,000 after buying an additional 750 shares during the last quarter. Finally, BNP Paribas Financial Markets lifted its holdings in Karooooo by 22.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 6,195 shares of the company's stock valued at $354,000 after purchasing an additional 1,150 shares during the last quarter.

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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