Wall Street Zen Downgrades Karooooo (NASDAQ:KARO) to Hold

Karooooo (NASDAQ:KARO) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued to investors on Saturday.

KARO has been the subject of a number of other research reports. Zacks Research lowered shares of Karooooo from a “strong-buy” rating to a “hold” rating in a research note on Thursday, September 11th. Morgan Stanley reissued an “overweight” rating and set a $53.00 price objective (up from $43.00) on shares of Karooooo in a report on Thursday, June 26th. UBS Group began coverage on shares of Karooooo in a research report on Friday, August 29th. They issued a “buy” rating and a $60.00 target price for the company. Weiss Ratings started coverage on shares of Karooooo in a research report on Thursday. They set a “hold (c+)” rating on the stock. Finally, Raymond James Financial reissued an “outperform” rating and issued a $60.00 price objective (up from $58.00) on shares of Karooooo in a report on Thursday, July 24th. Four equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Karooooo has an average rating of “Moderate Buy” and an average price target of $58.25.

Karooooo Stock Up 1.3%

Shares of NASDAQ KARO opened at $44.80 on Friday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 0.79 and a current ratio of 0.80. Karooooo has a 1 year low of $35.88 and a 1 year high of $63.36. The stock’s 50-day simple moving average is $52.68 and its 200-day simple moving average is $49.37. The firm has a market cap of $1.38 billion, a price-to-earnings ratio of 25.03 and a beta of 1.09.

Karooooo (NASDAQ:KARO) last issued its quarterly earnings data on Tuesday, October 14th. The company reported $0.47 earnings per share for the quarter, beating analysts’ consensus estimates of $0.46 by $0.01. Karooooo had a return on equity of 31.64% and a net margin of 19.90%.The firm had revenue of $76.16 million during the quarter, compared to analyst estimates of $73.45 million. Karooooo has set its FY 2026 guidance at 1.830-2.000 EPS. As a group, equities analysts anticipate that Karooooo will post 1.57 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Telemark Asset Management LLC acquired a new stake in Karooooo during the 2nd quarter worth about $11,028,000. Capricorn Fund Managers Ltd increased its stake in shares of Karooooo by 10.3% in the third quarter. Capricorn Fund Managers Ltd now owns 170,756 shares of the company’s stock worth $9,754,000 after acquiring an additional 16,000 shares during the last quarter. Fiera Capital Corp purchased a new stake in shares of Karooooo during the 2nd quarter worth about $5,878,000. Acadian Asset Management LLC lifted its stake in Karooooo by 50.1% in the second quarter. Acadian Asset Management LLC now owns 69,705 shares of the company’s stock valued at $3,391,000 after acquiring an additional 23,251 shares during the last quarter. Finally, Marshall Wace LLP increased its stake in shares of 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 purchasing an additional 48,644 shares during the last quarter.

Karooooo Company Profile

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.