Karooooo Ltd. (NASDAQ:KARO) Receives Consensus Rating of “Buy” from Analysts

Shares of Karooooo Ltd. (NASDAQ:KARO) have been assigned a consensus rating of “Buy” from the seven ratings firms that are covering the company, Marketbeat.com reports. One investment analyst has rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month target price among brokers that have covered the stock in the last year is $73.50.

KARO has been the topic of several recent research reports. Freedom Capital downgraded Karooooo from a “strong-buy” rating to a “hold” rating in a report on Friday. Zacks Research upgraded Karooooo from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Wall Street Zen downgraded Karooooo from a “buy” rating to a “hold” rating in a research report on Sunday, June 21st. Roth Capital restated a “buy” rating and set a $74.00 target price on shares of Karooooo in a research note on Friday. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Karooooo in a report on Friday, April 24th.

Karooooo Stock Performance

NASDAQ:KARO opened at $62.69 on Monday. Karooooo has a 52 week low of $41.25 and a 52 week high of $66.19. The company has a fifty day simple moving average of $50.13 and a two-hundred day simple moving average of $48.83. The company has a quick ratio of 1.01, a current ratio of 1.02 and a debt-to-equity ratio of 0.15. The company has a market cap of $1.94 billion, a price-to-earnings ratio of 31.82 and a beta of 0.89.

Karooooo (NASDAQ:KARO) last announced its quarterly earnings data on Wednesday, July 15th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.08. The business had revenue of $96.26 million for the quarter. Karooooo had a return on equity of 32.03% and a net margin of 17.74%.Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS. As a group, equities analysts anticipate that Karooooo will post 2.41 earnings per share for the current fiscal year.

Karooooo Increases Dividend

The company 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 is a boost from Karooooo’s previous annual dividend of $1.25. The ex-dividend date is Friday, July 17th. This represents a yield of 239.0%. Karooooo’s dividend payout ratio (DPR) is presently 76.14%.

Institutional Investors Weigh In On Karooooo

A number of hedge funds and other institutional investors have recently modified their holdings of KARO. DGS Capital Management LLC raised its position in Karooooo by 5.7% in the first quarter. DGS Capital Management LLC now owns 7,359 shares of the company’s stock worth $367,000 after acquiring an additional 398 shares in the last quarter. Renaissance Technologies LLC boosted its position in shares of Karooooo by 1.4% during the 1st quarter. Renaissance Technologies LLC now owns 27,987 shares of the company’s stock worth $1,395,000 after purchasing an additional 400 shares in the last quarter. Lazard Asset Management LLC grew its stake in shares of 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 purchasing an additional 430 shares during the period. Bank of America Corp DE increased its holdings in shares of Karooooo by 17.2% in the 2nd quarter. Bank of America Corp DE now owns 5,100 shares of the company’s stock valued at $250,000 after purchasing an additional 750 shares in the last quarter. Finally, Harbour Capital Advisors LLC increased its holdings in shares of Karooooo by 16.7% in 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.

Trending Headlines about 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.

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.