Karooooo (NASDAQ:KARO) Cut to Hold at Freedom Capital

Freedom Capital cut shares of Karooooo (NASDAQ:KARO) from a strong-buy rating to a hold rating in a research note issued to investors on Friday morning,Zacks.com reports.

Several other equities analysts also recently issued reports on the stock. Needham & Company LLC raised their price target on shares of Karooooo from $60.00 to $70.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Wall Street Zen cut shares of Karooooo from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. Roth Capital reaffirmed a “buy” rating and set a $74.00 target price on shares of Karooooo in a research report on Friday. Zacks Research raised Karooooo from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 7th. Finally, Raymond James Financial lifted their target price on Karooooo from $60.00 to $75.00 and gave the stock an “outperform” rating in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $73.50.

Karooooo Stock Performance

NASDAQ:KARO opened at $62.69 on Friday. The stock’s 50-day moving average is $50.13 and its 200-day moving average is $48.83. Karooooo has a 1-year low of $41.25 and a 1-year high of $66.19. The company has a current ratio of 1.02, a quick ratio of 1.01 and a debt-to-equity ratio of 0.15. The stock has a market cap of $1.94 billion, a P/E ratio of 31.82 and a beta of 0.89.

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

Karooooo Increases Dividend

The company also recently declared an annual dividend, which will be paid on Monday, July 27th. Stockholders of record on Friday, July 17th will be given a $1.50 dividend. This is an increase from Karooooo’s previous annual dividend of $1.25. The ex-dividend date is Friday, July 17th. This represents a dividend yield of 239.0%. Karooooo’s dividend payout ratio is presently 76.14%.

Institutional Investors Weigh In On Karooooo

Several large investors have recently modified their holdings of KARO. Capricorn Fund Managers Ltd lifted its holdings in Karooooo by 39.4% in the fourth quarter. Capricorn Fund Managers Ltd now owns 238,078 shares of the company’s stock valued at $10,833,000 after buying an additional 67,322 shares during the period. Tudor Investment Corp ET AL grew its holdings in Karooooo by 238.3% during the 3rd quarter. Tudor Investment Corp ET AL now owns 17,917 shares of the company’s stock worth $1,023,000 after acquiring an additional 12,621 shares during the period. Bullseye Asset Management LLC raised its position in shares of Karooooo by 101.7% in the 4th quarter. Bullseye Asset Management LLC now owns 32,129 shares of the company’s stock worth $1,461,000 after acquiring an additional 16,200 shares in the last quarter. Aurora Investment Counsel bought a new position in shares of Karooooo in the 4th quarter worth about $1,651,000. Finally, Schwartz Investment Counsel Inc. lifted its stake in shares of Karooooo by 22.9% in the 4th quarter. Schwartz Investment Counsel Inc. now owns 78,365 shares of the company’s stock valued at $3,566,000 after purchasing an additional 14,600 shares during the period.

Key Karooooo News

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.