Karooooo (NASDAQ:KARO) Lowered to “Hold” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Karooooo (NASDAQ:KARO) from a buy rating to a hold rating in a report published on Saturday.

KARO has been the topic of a number of other research reports. Weiss Ratings restated a “buy (b-)” rating on shares of Karooooo in a research report on Friday, April 24th. Roth Mkm restated a “buy” rating and set a $68.00 price objective on shares of Karooooo in a research report on Thursday. Finally, UBS Group reduced their price objective on Karooooo from $60.00 to $55.00 and set a “buy” rating on the stock in a research report on Friday. Six equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Karooooo has an average rating of “Moderate Buy” and an average target price of $59.20.

Karooooo Trading Up 3.3%

Shares of KARO stock opened at $46.04 on Friday. The firm has a market capitalization of $1.42 billion, a P/E ratio of 24.89 and a beta of 0.92. Karooooo has a twelve month low of $41.25 and a twelve month high of $63.36. The company has a quick ratio of 0.84, a current ratio of 1.06 and a debt-to-equity ratio of 0.17. The stock’s fifty day simple moving average is $48.86 and its 200 day simple moving average is $47.19.

Karooooo (NASDAQ:KARO) last issued its quarterly earnings data on Tuesday, April 14th. The company reported $0.45 earnings per share for the quarter. The business had revenue of $90.93 million for the quarter. Karooooo had a return on equity of 31.26% and a net margin of 18.07%. As a group, sell-side analysts predict that Karooooo will post 2.37 EPS for the current fiscal year.

Karooooo Increases Dividend

The business also recently announced an annual dividend, which will be paid on Monday, July 27th. Shareholders of record on Friday, July 17th will be issued a dividend of $1.50 per share. This represents a yield of 347.0%. The ex-dividend date of this dividend is Friday, July 17th. This is a boost from Karooooo’s previous annual dividend of $1.25. Karooooo’s dividend payout ratio (DPR) is presently 67.57%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Jones Financial Companies Lllp lifted its holdings in Karooooo by 159.4% during the 3rd quarter. Jones Financial Companies Lllp now owns 804 shares of the company’s stock worth $46,000 after buying an additional 494 shares during the period. Murphy & Mullick Capital Management Corp lifted its holdings in Karooooo by 260.0% during the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 900 shares of the company’s stock worth $51,000 after buying an additional 650 shares during the period. Fideuram Asset Management Ireland dac acquired a new position in Karooooo during the 4th quarter worth about $80,000. Royal Bank of Canada lifted its holdings in Karooooo by 852.9% during the 4th quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock worth $135,000 after buying an additional 2,644 shares during the period. Finally, Quantbot Technologies LP acquired a new position in Karooooo during the 2nd quarter worth about $156,000.

Key Karooooo News

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Karooooo raised its FY 2027 EPS guidance to ZAR 38.5-ZAR 40, above Wall Street expectations, signaling management confidence in future profitability. Karooooo (KARO) Q4 2026 Earnings Transcript
• Positive Sentiment: The company reported record subscription revenue growth in Q4, including 22% year-over-year growth in Cartrack South Africa subscription revenue and 18% growth in SaaS ARR, reinforcing the long-term growth story. Karooooo Delivers Accelerating Subscription Revenue Growth and Strong Cash Flow in FY 2026
• Positive Sentiment: Karooooo announced an annual dividend of $1.50 per share, up 20% from the prior year, which may support investor sentiment. Karooooo Ltd. earnings report
• Neutral Sentiment: Fourth-quarter revenue of $90.93 million topped estimates, but EPS of $0.44 came in below consensus, creating a mixed earnings reaction. Karooooo Ltd. earnings report
• Neutral Sentiment: Management also acknowledged margin pressure, suggesting investors are balancing strong growth against some near-term profitability squeeze. Karooooo Ltd. Bets on Growth Amid Margin Squeeze
• Negative Sentiment: The Q4 EPS miss versus analyst expectations could weigh on the stock as traders focus on profitability coming in softer than forecast. Karooooo Ltd. (KARO) Lags Q4 Earnings Estimates

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.