Karooooo (NASDAQ:KARO) Shares Gap Down After Analyst Downgrade

Posted by Stanley Muller on Jul 20th, 2026

Karooooo Ltd. (NASDAQ:KARO – Get Free Report) gapped down prior to trading on Monday after Freedom Capital downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $65.16, but opened at $62.69. Karooooo shares last traded at $64.03, with a volume of 10,948 shares changing hands.

Several other research firms have also weighed in on KARO. Roth Capital reissued a “buy” rating and set a $74.00 price objective on shares of Karooooo in a research note on Friday. Needham & Company LLC boosted their target price on Karooooo from $60.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Wall Street Zen downgraded Karooooo from a “buy” rating to a “hold” rating in a report on Sunday, June 21st. Zacks Research upgraded Karooooo from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, July 7th. Finally, Raymond James Financial increased their price target on Karooooo from $60.00 to $75.00 and gave the company an “outperform” rating in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $73.50.

View Our Latest Analysis on KARO

Hedge Funds Weigh In On Karooooo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Capricorn Fund Managers Ltd increased its stake in Karooooo by 39.4% in the 4th quarter. Capricorn Fund Managers Ltd now owns 238,078 shares of the company’s stock valued at $10,833,000 after buying an additional 67,322 shares during the period. Marshall Wace LLP boosted its stake in shares of Karooooo by 699.1% during the 2nd quarter. Marshall Wace LLP now owns 55,602 shares of the company’s stock valued at $2,723,000 after buying an additional 48,644 shares during the period. Two Sigma Investments LP grew its holdings in shares of Karooooo by 115.4% during the 3rd quarter. Two Sigma Investments LP now owns 74,130 shares of the company’s stock valued at $4,234,000 after acquiring an additional 39,709 shares in the last quarter. Aurora Investment Counsel acquired a new position in shares of Karooooo in the fourth quarter worth $1,651,000. Finally, Russell Investments Group Ltd. purchased a new stake in shares of Karooooo during the 2nd quarter worth about $1,378,000.

Karooooo Trading Up 1.8%

The firm has a market capitalization of $1.97 billion, a price-to-earnings ratio of 32.39 and a beta of 0.89. The company has a fifty day moving average price of $50.13 and a 200-day moving average price of $48.83. The company has a current ratio of 1.02, a quick ratio of 1.01 and a debt-to-equity ratio of 0.15.

Karooooo (NASDAQ:KARO – Get Free Report) last announced its quarterly earnings results on Wednesday, July 15th. The company reported $0.59 EPS for the quarter, topping the consensus estimate of $0.51 by $0.08. Karooooo had a net margin of 17.74% and a return on equity of 32.03%. The company had revenue of $96.26 million for the quarter. Karooooo has set its FY 2027 guidance at 2.334-2.425 EPS. On average, equities research analysts predict that Karooooo Ltd. will post 2.41 EPS for the current year.

Karooooo Increases Dividend

The business also recently disclosed an annual dividend, which will be paid on Monday, July 27th. Investors of record on Friday, July 17th will be paid a $1.50 dividend. This represents a dividend yield of 239.0%. The ex-dividend date of this dividend is Friday, July 17th. This is a positive change from Karooooo’s previous annual dividend of $1.25. Karooooo’s dividend payout ratio (DPR) is 76.14%.

Karooooo Company Profile

(Get Free Report)

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.