Karooooo (NASDAQ:KARO) Shares Down 7.7% – Here’s Why

Karooooo Ltd. (NASDAQ:KARO)’s stock price dropped 7.7% on Tuesday . The stock traded as low as $40.27 and last traded at $42.00. Approximately 36,567 shares were traded during trading, an increase of 121% from the average daily volume of 16,554 shares. The stock had previously closed at $45.50.

Wall Street Analyst Weigh In

Separately, Morgan Stanley upped their price objective on Karooooo from $31.00 to $37.00 and gave the stock an “overweight” rating in a research note on Thursday, July 11th.

Karooooo Stock Down 9.7 %

The company has a market capitalization of $878.72 million, a price-to-earnings ratio of 35.83 and a beta of 1.01. The firm’s 50 day moving average price is $38.33 and its two-hundred day moving average price is $32.98. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.05.

Karooooo (NASDAQ:KARO) last released its quarterly earnings data on Thursday, July 18th. The company reported $0.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.36 by $0.03. Karooooo had a return on equity of 27.88% and a net margin of 18.70%. The firm had revenue of $58.29 million for the quarter, compared to analyst estimates of $58.54 million. Sell-side analysts anticipate that Karooooo Ltd. will post 1.48 earnings per share for the current fiscal year.

Karooooo Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 14th. Stockholders of record on Thursday, August 8th were given a $1.08 dividend. This is an increase from Karooooo’s previous quarterly dividend of $0.85. The ex-dividend date was Thursday, August 8th. This represents a $4.32 annualized dividend and a dividend yield of 10.51%. Karooooo’s dividend payout ratio is presently 340.16%.

Institutional Investors Weigh In On Karooooo

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Acadian Asset Management LLC grew its holdings in shares of Karooooo by 50.6% during the 2nd quarter. Acadian Asset Management LLC now owns 4,096 shares of the company’s stock worth $116,000 after purchasing an additional 1,377 shares in the last quarter. Schwarz Dygos Wheeler Investment Advisors LLC lifted its position in Karooooo by 1.2% during the second quarter. Schwarz Dygos Wheeler Investment Advisors LLC now owns 175,349 shares of the company’s stock worth $5,138,000 after purchasing an additional 2,000 shares during the period. Renaissance Technologies LLC grew its stake in Karooooo by 23.3% during the second quarter. Renaissance Technologies LLC now owns 17,757 shares of the company’s stock worth $520,000 after buying an additional 3,356 shares in the last quarter. Jupiter Asset Management Ltd. increased its holdings in Karooooo by 2.6% in the 1st quarter. Jupiter Asset Management Ltd. now owns 198,392 shares of the company’s stock valued at $4,972,000 after buying an additional 5,002 shares during the period. Finally, Swedbank AB raised its position in shares of Karooooo by 26.0% in the 2nd quarter. Swedbank AB now owns 120,000 shares of the company’s stock valued at $3,516,000 after buying an additional 24,746 shares in the last quarter.

Karooooo Company Profile

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.