Karooooo (NASDAQ:KARO) Issues Earnings Results

Karooooo (NASDAQ:KARO) released its quarterly earnings data on Wednesday, May 13th. The company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.51 by ($0.07), Zacks reports. The firm had revenue of $90.93 million during the quarter, compared to analyst estimates of $89.42 million. Karooooo had a net margin of 18.07% and a return on equity of 31.26%. Karooooo updated its FY 2027 guidance to 2.350-2.440 EPS.

Karooooo Stock Up 6.5%

NASDAQ KARO traded up $3.27 during mid-day trading on Thursday, reaching $53.87. 108,725 shares of the company’s stock traded hands, compared to its average volume of 69,529. The company has a fifty day simple moving average of $48.18 and a 200-day simple moving average of $47.89. Karooooo has a 1-year low of $41.25 and a 1-year high of $60.53. The company has a market cap of $1.66 billion, a price-to-earnings ratio of 29.12 and a beta of 0.89. The company has a current ratio of 1.06, a quick ratio of 1.05 and a debt-to-equity ratio of 0.17.

Karooooo Increases Dividend

The firm also recently declared an annual dividend, which will be paid on Monday, July 27th. Investors of record on Friday, July 17th will be issued a $1.50 dividend. This is an increase from Karooooo’s previous annual dividend of $1.25. This represents a yield of 347.0%. The ex-dividend date of this dividend is Friday, July 17th. Karooooo’s dividend payout ratio (DPR) is currently 67.57%.

Institutional Trading of Karooooo

Several institutional investors have recently added to or reduced their stakes in KARO. Two Sigma Investments LP boosted its position in shares of Karooooo by 115.4% during the third 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. Marshall Wace LLP increased its position in Karooooo by 699.1% in the 2nd quarter. Marshall Wace LLP now owns 55,602 shares of the company’s stock valued at $2,723,000 after acquiring an additional 48,644 shares during the period. First Trust Advisors LP raised its stake in Karooooo by 43.1% during the 4th quarter. First Trust Advisors LP now owns 46,767 shares of the company’s stock valued at $2,128,000 after acquiring an additional 14,078 shares in the last quarter. Geode Capital Management LLC boosted its position in Karooooo by 11.8% during the 4th quarter. Geode Capital Management LLC now owns 33,405 shares of the company’s stock worth $1,520,000 after acquiring an additional 3,518 shares during the period. Finally, Bank of America Corp DE increased its holdings in shares of Karooooo by 514.8% during the third quarter. Bank of America Corp DE now owns 31,357 shares of the company’s stock valued at $1,791,000 after purchasing an additional 26,257 shares during the period.

Analysts Set New Price Targets

Several equities analysts recently weighed in on KARO shares. Wall Street Zen lowered shares of Karooooo from a “buy” rating to a “hold” rating in a report on Sunday, June 21st. UBS Group lowered their target price on Karooooo from $60.00 to $55.00 and set a “buy” rating for the company in a research note on Friday, May 15th. Needham & Company LLC reissued a “buy” rating on shares of Karooooo in a research report on Wednesday, June 3rd. Roth Mkm restated a “buy” rating and issued a $68.00 price target on shares of Karooooo in a report on Thursday, May 14th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Karooooo in a research report on Friday, April 24th. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Karooooo presently has an average rating of “Moderate Buy” and a consensus target price of $60.75.

About Karooooo

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.