Karooooo (NASDAQ:KARO) Sees Strong Trading Volume - Should You Buy?

Karooooo Ltd. (NASDAQ:KARO - Get Free Report) saw strong trading volume on Monday . 43,152 shares changed hands during mid-day trading, an increase of 178% from the previous session's volume of 15,500 shares.The stock last traded at $39.75 and had previously closed at $39.50.

Analysts Set New Price Targets

Separately, Morgan Stanley raised their price target on Karooooo from $31.00 to $37.00 and gave the stock an "overweight" rating in a research report on Thursday, July 11th.

Karooooo Price Performance

The company has a market capitalization of $833.61 million, a price-to-earnings ratio of 30.70 and a beta of 1.01. The company has a current ratio of 1.52, a quick ratio of 1.52 and a debt-to-equity ratio of 0.05. The company's 50 day simple moving average is $37.79 and its 200-day simple moving average is $32.32.

Karooooo (NASDAQ:KARO - Get Free Report) 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. The firm had revenue of $58.29 million for the quarter, compared to analyst estimates of $58.54 million. Karooooo had a net margin of 18.70% and a return on equity of 27.88%. On average, equities research analysts predict that Karooooo Ltd. will post 1.48 earnings per share for the current fiscal year.

Karooooo Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 14th. Stockholders 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 11.08%. This is an increase from Karooooo's previous quarterly dividend of $0.85. Karooooo's payout ratio is currently 340.16%.

Hedge Funds Weigh In On Karooooo

Several large investors have recently added to or reduced their stakes in KARO. Jupiter Asset Management Ltd. lifted its holdings in shares of Karooooo by 5.4% during the 2nd quarter. Jupiter Asset Management Ltd. now owns 209,097 shares of the company's stock worth $6,001,000 after acquiring an additional 10,705 shares during the period. Schwarz Dygos Wheeler Investment Advisors LLC raised its stake 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. Swedbank AB boosted its holdings 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 purchasing an additional 24,746 shares during the last quarter. Renaissance Technologies LLC grew its stake in shares of Karooooo by 23.3% during the 2nd quarter. Renaissance Technologies LLC now owns 17,757 shares of the company's stock valued at $520,000 after buying an additional 3,356 shares during the period. Finally, Acadian Asset Management LLC grew its stake 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 valued at $116,000 after buying an additional 1,377 shares during the period.

About Karooooo

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.