Karooooo (NASDAQ:KARO) Shares Gap Up - Should You Buy?

Karooooo Ltd. (NASDAQ:KARO - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $38.40, but opened at $39.97. Karooooo shares last traded at $40.37, with a volume of 6,041 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Morgan Stanley increased their target price on 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 firm has a 50 day moving average of $38.38 and a two-hundred day moving average of $33.07. The stock has a market cap of $832.54 million, a P/E ratio of 30.87 and a beta of 1.01. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.52 and a current ratio of 1.52.

Karooooo (NASDAQ:KARO - Get Free Report) last announced its quarterly earnings data on Thursday, July 18th. The company reported $0.39 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 company had revenue of $58.29 million during the quarter, compared to the consensus estimate of $58.54 million. On average, research analysts predict that Karooooo Ltd. will post 1.48 EPS for the current fiscal year.

Karooooo Increases Dividend

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

Institutional Trading of Karooooo

Hedge funds have recently modified their holdings of the company. Acadian Asset Management LLC bought a new stake in shares of Karooooo in the 1st quarter worth approximately $67,000. Renaissance Technologies LLC raised its holdings in shares of 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 in the last quarter. Swedbank AB acquired a new position in shares of Karooooo in the 1st quarter worth approximately $2,387,000. Schwarz Dygos Wheeler Investment Advisors LLC raised its holdings in shares of Karooooo by 1.2% in the 2nd quarter. Schwarz Dygos Wheeler Investment Advisors LLC now owns 175,349 shares of the company's stock worth $5,138,000 after buying an additional 2,000 shares in the last quarter. Finally, Jupiter Asset Management Ltd. raised its holdings in shares of Karooooo by 2.6% in the 1st quarter. Jupiter Asset Management Ltd. now owns 198,392 shares of the company's stock worth $4,972,000 after buying an additional 5,002 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.