Karooooo (NASDAQ:KARO) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research has upgraded Karooooo's stock rating to a "strong-buy", indicating increased confidence in the company's future performance.
• Karooooo's recent quarterly earnings report showed an EPS of $0.47, beating estimates, with a revenue of $70.49 million.
• Various analysts have set optimistic price targets for Karooooo's stock, with estimates ranging from $53.00 to $60.00, reflecting positive sentiment in the market.

Zacks Research upgraded shares of Karooooo (NASDAQ:KARO - Free Report) to a strong-buy rating in a report released on Tuesday, August 12th,Zacks.com reports.

A number of other research analysts have also recently commented on KARO. Needham & Company LLC started coverage on Karooooo in a research note on Wednesday, July 16th. They issued a "buy" rating and a $60.00 target price for the company. Raymond James Financial reissued an "outperform" rating and set a $60.00 price objective (up previously from $58.00) on shares of Karooooo in a research report on Thursday, July 24th. Finally, Morgan Stanley restated an "overweight" rating and set a $53.00 target price (up previously from $43.00) on shares of Karooooo in a report on Thursday, June 26th. One research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $57.67.

Karooooo Trading Down 0.4%

Shares of KARO traded down $0.1750 during trading hours on Tuesday, reaching $47.0750. 16,825 shares of the company traded hands, compared to its average volume of 51,110. Karooooo has a 12 month low of $34.00 and a 12 month high of $63.36. The company has a quick ratio of 1.16, a current ratio of 1.17 and a debt-to-equity ratio of 0.05. The company's fifty day moving average price is $48.27 and its two-hundred day moving average price is $46.58. The company has a market capitalization of $1.45 billion, a price-to-earnings ratio of 27.37 and a beta of 1.07.

Karooooo (NASDAQ:KARO - Get Free Report) last released its quarterly earnings results on Tuesday, July 22nd. The company reported $0.47 earnings per share (EPS) 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 the consensus estimate of $1.25 billion. Karooooo had a net margin of 20.23% and a return on equity of 31.48%. Karooooo has set its FY 2026 guidance at 1.760-1.920 EPS. Equities research analysts predict that Karooooo will post 1.57 earnings per share for the current fiscal year.

Karooooo Dividend Announcement

The company also recently disclosed a -- dividend, which will be paid on Friday, August 22nd. Shareholders of record on Friday, August 15th will be paid a dividend of $1.25 per share. This represents a yield of 220.0%. The ex-dividend date is Friday, August 15th. Karooooo's dividend payout ratio (DPR) is currently 290.70%.

Institutional Investors Weigh In On Karooooo

Several institutional investors and hedge funds have recently made changes to their positions in the company. JPMorgan Chase & Co. increased its holdings in shares of Karooooo by 1,727.0% in the 4th quarter. JPMorgan Chase & Co. now owns 8,934 shares of the company's stock worth $403,000 after purchasing an additional 8,445 shares in the last quarter. Raymond James Financial Inc. purchased a new stake in shares of Karooooo during the fourth quarter valued at $635,000. Marshall Wace LLP increased its holdings in Karooooo by 32.4% in the 4th quarter. Marshall Wace LLP now owns 39,021 shares of the company's stock worth $1,762,000 after buying an additional 9,552 shares in the last quarter. Northern Trust Corp purchased a new position in Karooooo in the 4th quarter worth about $340,000. Finally, BNP Paribas Financial Markets bought a new position in Karooooo during the 4th quarter valued at about $210,000.

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.