Karooooo (NASDAQ:KARO) Trading Down 4.6% - Here's What Happened

Key Points

• Karooooo Ltd. shares fell by 4.6%, closing at $57.61 after trading as low as $57.97.
• The company reported a $0.47 EPS for the last quarter, exceeding expectations, though revenue was significantly below analyst predictions at $70.49 million.
• Karooooo announced an annual dividend of $1.25 per share, resulting in a 220.0% yield, despite a high dividend payout ratio of 290.70%.

Karooooo Ltd. (NASDAQ:KARO - Get Free Report) shares were down 4.6% on Tuesday . The company traded as low as $57.97 and last traded at $57.61. Approximately 9,479 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 50,169 shares. The stock had previously closed at $60.40.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on KARO shares. Morgan Stanley reissued an "overweight" rating and issued a $53.00 price target (up from $43.00) on shares of Karooooo in a research report on Thursday, June 26th. UBS Group initiated coverage on shares of Karooooo in a report on Friday, August 29th. They issued a "buy" rating and a $60.00 target price for the company. Raymond James Financial reaffirmed an "outperform" rating and issued a $60.00 target price (up from $58.00) on shares of Karooooo in a report on Thursday, July 24th. Zacks Research cut shares of Karooooo from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 11th. Finally, Needham & Company LLC initiated coverage on shares of Karooooo in a report on Wednesday, July 16th. They issued a "buy" rating and a $60.00 target price for the company. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $58.25.

Karooooo Stock Down 3.6%

The stock has a market capitalization of $1.80 billion, a PE ratio of 33.85 and a beta of 1.08. The firm's fifty day moving average is $50.94 and its 200-day moving average is $48.31. 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 (NASDAQ:KARO - Get Free Report) last posted its quarterly earnings results 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. The firm had revenue of $70.49 million during the quarter, compared to analysts' expectations 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. On average, equities research analysts predict that Karooooo Ltd. will post 1.57 earnings per share for the current year.

Karooooo Dividend Announcement

The business also recently announced an annual dividend, which was paid on Friday, August 22nd. Shareholders of record on Friday, August 15th were issued a $1.25 dividend. The ex-dividend date of this dividend was Friday, August 15th. This represents a yield of 220.0%. Karooooo's dividend payout ratio (DPR) is 290.70%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Squarepoint Ops LLC grew its position in shares of Karooooo by 6.8% in the fourth quarter. Squarepoint Ops LLC now owns 9,494 shares of the company's stock valued at $429,000 after purchasing an additional 602 shares during the last quarter. Bank of America Corp DE grew 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 purchasing an additional 750 shares during the last quarter. New York State Common Retirement Fund grew its position in shares of Karooooo by 465.6% in the second quarter. New York State Common Retirement Fund now owns 3,258 shares of the company's stock valued at $160,000 after purchasing an additional 2,682 shares during the last quarter. BNP Paribas Financial Markets grew its position in shares of Karooooo by 154.5% in the second quarter. BNP Paribas Financial Markets now owns 5,045 shares of the company's stock valued at $247,000 after purchasing an additional 3,063 shares during the last quarter. Finally, Quantbot Technologies LP acquired a new stake in shares of Karooooo in the second quarter valued at approximately $156,000.

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.

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