Karooooo (NASDAQ:KARO) Hits New 1-Year High Following Analyst Upgrade

Karooooo Ltd. (NASDAQ:KARO) reached a new 52-week high on Friday after Raymond James Financial raised their price target on the stock from $60.00 to $75.00. Raymond James Financial currently has an outperform rating on the stock. Karooooo traded as high as $66.19 and last traded at $65.16, with a volume of 298122 shares changing hands. The stock had previously closed at $58.58.

Several other research analysts have also commented on KARO. Needham & Company LLC lifted their price objective on shares of Karooooo from $60.00 to $70.00 and gave the stock a “buy” rating in a research note on Tuesday. Zacks Research raised shares of Karooooo from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, July 7th. Weiss Ratings restated a “buy (b-)” rating on shares of Karooooo in a report on Friday, April 24th. Wall Street Zen cut shares of Karooooo from a “buy” rating to a “hold” rating in a research note on Sunday, June 21st. Finally, UBS Group reiterated a “buy” rating and set a $75.00 price target on shares of Karooooo in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $73.50.

Key Headlines Impacting 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.

Hedge Funds Weigh In On Karooooo

A number of hedge funds have recently added to or reduced their stakes in KARO. Capricorn Fund Managers Ltd raised its stake in shares of Karooooo by 16.9% during the first quarter. Capricorn Fund Managers Ltd now owns 278,346 shares of the company’s stock valued at $13,873,000 after acquiring an additional 40,268 shares in the last quarter. Schwartz Investment Counsel Inc. boosted its holdings in shares of Karooooo by 22.9% in the fourth 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. Two Sigma Investments LP grew its stake in Karooooo by 115.4% in the third quarter. Two Sigma Investments LP now owns 74,130 shares of the company’s stock worth $4,234,000 after purchasing an additional 39,709 shares in the last quarter. Marshall Wace LLP grew its stake in Karooooo by 699.1% in the second quarter. Marshall Wace LLP now owns 55,602 shares of the company’s stock worth $2,723,000 after purchasing an additional 48,644 shares in the last quarter. Finally, First Trust Advisors LP grew its stake in Karooooo by 43.1% in the fourth quarter. First Trust Advisors LP now owns 46,767 shares of the company’s stock worth $2,128,000 after purchasing an additional 14,078 shares in the last quarter.

Karooooo Price Performance

The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.05 and a current ratio of 1.02. The firm has a fifty day simple moving average of $50.13 and a 200 day simple moving average of $48.81. The company has a market capitalization of $1.94 billion, a PE ratio of 31.82 and a beta of 0.89.

Karooooo (NASDAQ:KARO) last issued its earnings results on Wednesday, July 15th. The company reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.51 by $0.08. Karooooo had a return on equity of 31.97% and a net margin of 17.74%.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 analysts anticipate that Karooooo Ltd. will post 2.41 EPS for the current year.

Karooooo Increases Dividend

The company also recently disclosed an annual dividend, which will be paid on Monday, July 27th. Investors of record on Friday, July 17th will be issued a $1.50 dividend. The ex-dividend date is Friday, July 17th. This is an increase from Karooooo’s previous annual dividend of $1.25. This represents a dividend yield of 239.0%. Karooooo’s dividend payout ratio is presently 67.57%.

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.