Karooooo (NASDAQ:KARO) Downgraded to Hold Rating by Freedom Capital

Freedom Capital lowered shares of Karooooo (NASDAQ:KARO) from a strong-buy rating to a hold rating in a report released on Friday,Zacks.com reports.

KARO has been the subject of a number of other reports. Raymond James Financial raised their price objective on shares of Karooooo from $60.00 to $75.00 and gave the stock an “outperform” rating in a report on Friday. Zacks Research upgraded shares of Karooooo from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Needham & Company LLC lifted their price objective on Karooooo from $60.00 to $70.00 and gave the company a “buy” rating in a report on Tuesday. Wall Street Zen lowered Karooooo from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. Finally, Roth Capital reissued a “buy” rating and issued a $74.00 target price on shares of Karooooo in a report on Friday. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Karooooo has a consensus rating of “Buy” and a consensus price target of $73.50.

Karooooo Stock Performance

Shares of NASDAQ KARO opened at $62.69 on Friday. The firm has a market capitalization of $1.94 billion, a price-to-earnings ratio of 31.82 and a beta of 0.89. Karooooo has a one year low of $41.25 and a one year high of $66.19. The business has a fifty day simple moving average of $50.13 and a 200 day simple moving average of $48.81. The company has a current ratio of 1.02, a quick ratio of 1.05 and a debt-to-equity ratio of 0.15.

Karooooo (NASDAQ:KARO) last posted its quarterly earnings results on Wednesday, July 15th. The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.08. The firm had revenue of $96.26 million for the quarter. Karooooo had a net margin of 17.74% and a return on equity of 31.97%. Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS. Sell-side analysts expect that Karooooo will post 2.37 EPS for the current year.

Karooooo Increases Dividend

The company 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 dividend of $1.50 per share. The ex-dividend date of this dividend is Friday, July 17th. This represents a yield of 239.0%. This is an increase from Karooooo’s previous annual dividend of $1.25. Karooooo’s payout ratio is 67.57%.

Institutional Trading of Karooooo

Several large investors have recently added to or reduced their stakes in the company. DGS Capital Management LLC increased its holdings in shares of Karooooo by 5.7% during the first quarter. DGS Capital Management LLC now owns 7,359 shares of the company’s stock worth $367,000 after buying an additional 398 shares in the last quarter. Renaissance Technologies LLC boosted its holdings in shares of Karooooo by 1.4% in the 1st quarter. Renaissance Technologies LLC now owns 27,987 shares of the company’s stock worth $1,395,000 after acquiring an additional 400 shares in the last quarter. Lazard Asset Management LLC grew its position in Karooooo by 7.5% during the 3rd quarter. Lazard Asset Management LLC now owns 6,139 shares of the company’s stock worth $351,000 after acquiring an additional 430 shares during the last quarter. Bank of America Corp DE grew its position in Karooooo by 17.2% during the 2nd quarter. Bank of America Corp DE now owns 5,100 shares of the company’s stock worth $250,000 after acquiring an additional 750 shares during the last quarter. Finally, Harbour Capital Advisors LLC increased its holdings in Karooooo by 16.7% during the 4th quarter. Harbour Capital Advisors LLC now owns 5,425 shares of the company’s stock valued at $242,000 after purchasing an additional 775 shares in the last quarter.

Key Stories Impacting Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Raymond James raised its price target on Karooooo from $60 to $75 and reiterated an outperform rating, signaling confidence in further upside from current levels.
• Positive Sentiment: The company reported a strong Q1 earnings beat, with revenue up 22% and earnings per share above expectations, reinforcing the view that core business momentum remains intact. Karooooo Ltd. (KARO) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Subscriber growth in Cartrack accelerated, including reports of record subscriber additions and 18% growth in the quarter, which supports expectations for continued subscription revenue expansion. Karooooo’s growth bet pays off with record subscriber haul
• Neutral Sentiment: Investors also pointed to healthy margins, a strong cash position, and dividend support, which help offset foreign-exchange pressure and keep the balance sheet flexible.
• Neutral Sentiment: Karooooo’s Q1 results presentation and related coverage largely reinforced the same growth narrative rather than introducing a new catalyst. Karooooo Ltd. 2027 Q1 – Results – Earnings Call Presentation
• Negative Sentiment: Some margin compression from FX headwinds and higher sales and marketing spending could temper enthusiasm, though these issues have not yet outweighed the company’s growth story.

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.