Karooooo (NASDAQ:KARO) Upgraded by Wall Street Zen to "Buy" Rating

Key Points

• Wall Street Zen upgraded Karooooo to “Buy” from “Hold,” joining a generally positive analyst outlook. The stock has a consensus “Buy” rating and an average price target of $73.50.
• Karooooo reported quarterly EPS of $0.59, beating estimates of $0.51, on revenue of $96.26 million. The company posted a 17.74% net margin and 32.03% return on equity.
• Shares opened at $64.24, near their 12-month high of $66.23, while the CEO and other insiders sold roughly $6.3 million worth of stock over the past three months; insiders still own 74.73% of the company.

Karooooo (NASDAQ:KARO - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Several other equities research analysts have also recently weighed in on the company. Zacks Research upgraded Karooooo from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 7th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Karooooo in a research note on Friday, April 24th. Raymond James Financial boosted their price target on Karooooo from $60.00 to $75.00 and gave the stock an "outperform" rating in a report on Friday, July 17th. Roth Capital restated a "buy" rating and set a $74.00 price objective on shares of Karooooo in a research report on Friday, July 17th. Finally, Freedom Capital lowered Karooooo from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 17th. One research 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 stock. According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average price target of $73.50.

Karooooo Price Performance

Shares of NASDAQ:KARO opened at $64.24 on Friday. The firm has a 50 day moving average of $53.44 and a 200-day moving average of $50.07. Karooooo has a 12 month low of $41.25 and a 12 month high of $66.23. The company has a current ratio of 1.02, a quick ratio of 1.01 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $1.98 billion, a PE ratio of 32.61 and a beta of 0.89.

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

Insider Activity at Karooooo

In other news, CEO Isaias Jose Calisto sold 31,897 shares of the stock in a transaction 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. This represents a 0.18% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In the last three months, insiders sold 98,476 shares of company stock valued at $6,295,981. 74.73% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Karooooo

Institutional investors and hedge funds have recently bought and sold shares of the company. Capricorn Fund Managers Ltd increased its stake in shares of Karooooo by 39.4% in the fourth quarter. Capricorn Fund Managers Ltd now owns 238,078 shares of the company's stock valued at $10,833,000 after buying an additional 67,322 shares during the period. Marshall Wace LLP boosted its position in Karooooo by 699.1% during the 2nd quarter. Marshall Wace LLP now owns 55,602 shares of the company's stock worth $2,723,000 after buying an additional 48,644 shares during the period. Two Sigma Investments LP boosted its position in Karooooo by 115.4% during the 3rd quarter. Two Sigma Investments LP now owns 74,130 shares of the company's stock worth $4,234,000 after buying an additional 39,709 shares during the period. Aurora Investment Counsel bought a new position in shares of Karooooo during the fourth quarter valued at $1,651,000. Finally, Russell Investments Group Ltd. bought a new position in shares of Karooooo during the second quarter valued at $1,378,000.

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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