Karooooo (NASDAQ:KARO) Cut to “Hold” at 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 morning.

A number of other research firms have also issued reports on KARO. UBS Group started coverage on Karooooo in a research note on Friday, August 29th. They issued a “buy” rating and a $60.00 target price on the stock. Raymond James Financial reaffirmed an “outperform” rating and issued a $60.00 target price (up previously from $58.00) on shares of Karooooo in a research note on Thursday, July 24th. Zacks Research lowered Karooooo from a “strong-buy” rating to a “hold” rating in a research note on Thursday, September 11th. Morgan Stanley reaffirmed an “overweight” rating and issued a $53.00 target price (up previously from $43.00) on shares of Karooooo in a research note on Thursday, June 26th. Finally, Needham & Company LLC started coverage on Karooooo in a research note on Wednesday, July 16th. They issued a “buy” rating and a $60.00 target price on the stock. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $58.25.

Karooooo Stock Performance

KARO opened at $43.90 on Friday. The stock has a market cap of $1.36 billion, a P/E ratio of 24.53 and a beta of 1.09. The company has a debt-to-equity ratio of 0.08, a current ratio of 0.80 and a quick ratio of 0.79. The stock’s 50 day simple moving average is $52.63 and its 200 day simple moving average is $49.41. Karooooo has a 1-year low of $35.88 and a 1-year high of $63.36.

Karooooo (NASDAQ:KARO) last released its quarterly earnings results on Tuesday, October 14th. The company reported $0.47 earnings per share for the quarter, topping analysts’ consensus estimates of $0.46 by $0.01. The business had revenue of $76.16 million for the quarter, compared to analysts’ expectations of $73.45 million. Karooooo had a return on equity of 31.64% and a net margin of 19.90%. Karooooo has set its FY 2026 guidance at 1.830-2.000 EPS. As a group, equities analysts anticipate that Karooooo will post 1.57 EPS for the current fiscal year.

Institutional Trading of Karooooo

Several large investors have recently added to or reduced their stakes in the stock. Copeland Capital Management LLC acquired a new stake in Karooooo in the 3rd quarter valued at $76,000. Capricorn Fund Managers Ltd increased its holdings in Karooooo by 10.3% in the 3rd quarter. Capricorn Fund Managers Ltd now owns 170,756 shares of the company’s stock valued at $9,754,000 after purchasing an additional 16,000 shares in the last quarter. Harbour Capital Advisors LLC acquired a new stake in Karooooo in the 3rd quarter valued at $255,000. Squarepoint Ops LLC increased its holdings in Karooooo by 26.1% in the 2nd quarter. Squarepoint Ops LLC now owns 12,163 shares of the company’s stock valued at $596,000 after purchasing an additional 2,518 shares in the last quarter. Finally, State of Tennessee Department of Treasury acquired a new stake in Karooooo in the 2nd quarter valued at $214,000.

About Karooooo

Karooooo Ltd. provides mobility software-as-a-service (SaaS) platform for connected vehicles in South Africa, rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States. The company offers Fleet Telematics, a fleet management SaaS platform that provides real-time insights; LiveVision, which offers pro-active risk management and fleet visibility; MiFleet advanced fleet administration and business intelligence that provides cost management and administration capability services; and Karooooo Logistics, a software application for management of last mile delivery and general operational logistics.