Karooooo (NASDAQ:KARO) Sees Strong Trading Volume on Strong Earnings

Karooooo Ltd. (NASDAQ:KARO) saw unusually-high trading volume on Thursday after the company announced better than expected quarterly earnings. Approximately 93,047 shares were traded during mid-day trading, an increase of 25% from the previous session’s volume of 74,276 shares.The stock last traded at $61.8730 and had previously closed at $58.58.

The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.08. The company had revenue of $96.26 million during the quarter. Karooooo had a return on equity of 31.26% and a net margin of 18.07%.Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS.

Karooooo Increases Dividend

The business also recently declared 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%. This is a boost from Karooooo’s previous annual dividend of $1.25. The ex-dividend date is Friday, July 17th. Karooooo’s dividend payout ratio is 81.08%.

Analyst Ratings Changes

A number of analysts have recently weighed in on KARO shares. Wall Street Zen cut shares of Karooooo from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. Zacks Research upgraded shares of Karooooo from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 7th. Roth Capital reissued a “buy” rating and set a $68.00 target price on shares of Karooooo in a research report on Thursday, May 14th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Karooooo in a research report on Friday, April 24th. Finally, UBS Group dropped their price objective on Karooooo from $60.00 to $55.00 and set a “buy” rating on the stock in a research note on Friday, May 15th. One research analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the company. According to MarketBeat.com, Karooooo currently has an average rating of “Buy” and a consensus price target of $63.25.

Institutional Investors Weigh In On Karooooo

Hedge funds have recently made changes to their positions in the stock. Fideuram Asset Management Ireland dac bought a new position in Karooooo during the fourth quarter valued at about $80,000. Royal Bank of Canada raised its stake in shares of Karooooo by 852.9% in the fourth quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock valued at $135,000 after purchasing an additional 2,644 shares in the last quarter. Quantbot Technologies LP bought a new position in Karooooo in the second quarter worth $156,000. New York State Common Retirement Fund boosted its stake in Karooooo by 465.6% during the second quarter. New York State Common Retirement Fund now owns 3,258 shares of the company’s stock worth $160,000 after buying an additional 2,682 shares in the last quarter. Finally, State of Tennessee Department of Treasury acquired a new stake in Karooooo during the second quarter worth $214,000.

Karooooo Price Performance

The stock has a market cap of $1.91 billion, a P/E ratio of 33.67 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. The company’s fifty day simple moving average is $49.60 and its 200-day simple moving average is $48.59.

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.