Karooooo (NASDAQ:KARO) Shares Down 7.7% – Time to Sell?

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

Analyst Ratings Changes

Separately, Morgan Stanley lifted their target price on shares of Karooooo from $31.00 to $37.00 and gave the company an “overweight” rating in a research note on Thursday, July 11th.

Karooooo Stock Performance

The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.52 and a current ratio of 1.52. The company has a market cap of $832.54 million, a P/E ratio of 30.66 and a beta of 1.01. The firm has a 50 day moving average price of $38.43 and a 200-day moving average price of $33.11.

Karooooo (NASDAQ:KARO) last announced its earnings results on Thursday, July 18th. The company reported $0.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $58.54 million. On average, research analysts predict that Karooooo Ltd. will post 1.48 EPS for the current year.

Karooooo Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 14th. Stockholders of record on Thursday, August 8th were paid a $1.08 dividend. This represents a $4.32 dividend on an annualized basis and a dividend yield of 11.09%. This is a boost from Karooooo’s previous quarterly dividend of $0.85. The ex-dividend date of this dividend was Thursday, August 8th. Karooooo’s payout ratio is presently 340.16%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of KARO. Swedbank AB acquired a new stake in shares of Karooooo in the first quarter valued at about $2,387,000. Jupiter Asset Management Ltd. grew its holdings in Karooooo by 5.4% in the 2nd quarter. Jupiter Asset Management Ltd. now owns 209,097 shares of the company’s stock valued at $6,001,000 after buying an additional 10,705 shares during the last quarter. Renaissance Technologies LLC increased its position in Karooooo by 23.3% in the 2nd quarter. Renaissance Technologies LLC now owns 17,757 shares of the company’s stock worth $520,000 after buying an additional 3,356 shares during the period. Acadian Asset Management LLC acquired a new position in shares of Karooooo during the first quarter worth approximately $67,000. Finally, Schwarz Dygos Wheeler Investment Advisors LLC boosted its position in shares of Karooooo by 1.2% in the second quarter. Schwarz Dygos Wheeler Investment Advisors LLC now owns 175,349 shares of the company’s stock valued at $5,138,000 after acquiring an additional 2,000 shares during the period.

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.