Karooooo (NASDAQ:KARO) Trading 8% Higher – Here’s Why

Shares of Karooooo Ltd. (NASDAQ:KARO) shot up 8% during trading on Wednesday . The company traded as high as $49.50 and last traded at $49.7670. 16,082 shares were traded during mid-day trading, a decline of 64% from the average session volume of 45,083 shares. The stock had previously closed at $46.07.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on KARO. Weiss Ratings raised shares of Karooooo from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, January 27th. Roth Mkm assumed coverage on Karooooo in a research note on Tuesday, February 17th. They issued a “buy” rating and a $62.00 price target on the stock. Finally, Wall Street Zen downgraded Karooooo from a “buy” rating to a “hold” rating in a report on Sunday, March 22nd. Six equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat, Karooooo presently has an average rating of “Moderate Buy” and a consensus price target of $59.00.

Karooooo Price Performance

The company’s 50-day moving average price is $47.58 and its two-hundred day moving average price is $48.07. The company has a market cap of $1.48 billion, a P/E ratio of 25.97 and a beta of 1.07. The company has a current ratio of 0.84, a quick ratio of 0.84 and a debt-to-equity ratio of 0.06.

Karooooo (NASDAQ:KARO) last issued its quarterly earnings results on Tuesday, January 20th. The company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.46 by $0.03. The business had revenue of $82.34 million for the quarter, compared to analysts’ expectations of $79.04 million. Karooooo had a net margin of 19.45% and a return on equity of 31.83%. Karooooo has set its FY 2026 guidance at 1.876-2.049 EPS. As a group, sell-side analysts expect that Karooooo Ltd. will post 1.57 earnings per share for the current year.

Hedge Funds Weigh In On Karooooo

Large investors have recently added to or reduced their stakes in the company. DGS Capital Management LLC increased its stake in Karooooo by 83.5% during the fourth quarter. DGS Capital Management LLC now owns 6,961 shares of the company’s stock valued at $317,000 after purchasing an additional 3,168 shares during the last quarter. State of Tennessee Department of Treasury grew its position in shares of Karooooo by 11.2% during the 4th quarter. State of Tennessee Department of Treasury now owns 12,347 shares of the company’s stock valued at $618,000 after buying an additional 1,242 shares during the last quarter. Russell Investments Group Ltd. bought a new stake in shares of Karooooo during the 4th quarter valued at about $623,000. Royal Bank of Canada raised its stake in Karooooo by 852.9% during the fourth quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock worth $135,000 after acquiring an additional 2,644 shares during the period. Finally, Squarepoint Ops LLC bought a new position in Karooooo in the fourth quarter worth about $226,000.

About Karooooo

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.