Karooooo (NASDAQ:KARO) Stock Rating Lowered by Zacks Research

Posted by Stanley Muller on Aug 7th, 2026

Karooooo (NASDAQ:KARO – Get Free Report) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. Raymond James Financial boosted their price objective on Karooooo from $60.00 to $75.00 and gave the stock an “outperform” rating in a research report on Friday, July 17th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Karooooo in a report on Friday, April 24th. Needham & Company LLC lifted their price target on Karooooo from $60.00 to $70.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Roth Capital reiterated a “buy” rating and set a $74.00 price target on shares of Karooooo in a report on Friday, July 17th. Finally, Wall Street Zen raised Karooooo from a “hold” rating to a “buy” rating in a research report on Saturday, August 1st. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $73.50.

Get Our Latest Analysis on KARO

Karooooo Stock Performance

Shares of KARO opened at $63.65 on Wednesday. The company has a market capitalization of $1.97 billion, a PE ratio of 32.31 and a beta of 0.85. Karooooo has a one year low of $41.25 and a one year high of $67.14. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.02 and a quick ratio of 1.01. The company’s fifty day moving average price is $54.80 and its 200 day moving average price is $50.62.

Karooooo (NASDAQ:KARO – Get Free Report) last released its earnings results on Thursday, July 16th. The company reported $0.59 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.08. Karooooo had a net margin of 17.74% and a return on equity of 32.03%. The firm had revenue of $96.26 million during the quarter. As a group, analysts expect that Karooooo will post 2.41 earnings per share for the current year.

Insiders Place Their Bets

In related news, CEO Isaias Jose Calisto sold 33,833 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $66.14, for a total transaction of $2,237,714.62. Following the transaction, the chief executive officer directly owned 17,714,186 shares in the company, valued at $1,171,616,262.04. The trade was a 0.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Insiders sold 203,772 shares of company stock worth $13,149,641 over the last 90 days. 74.73% of the stock is owned by company insiders.

Institutional Trading of Karooooo

Several institutional investors have recently modified their holdings of the company. Fideuram Asset Management Ireland dac bought a new stake in shares of Karooooo during the fourth quarter valued at approximately $80,000. Royal Bank of Canada raised its stake in shares of Karooooo by 852.9% in the fourth quarter. Royal Bank of Canada now owns 2,954 shares of the company’s stock valued at $135,000 after purchasing an additional 2,644 shares in the last quarter. Quantbot Technologies LP bought a new position in Karooooo in the second quarter worth $156,000. New York State Common Retirement Fund raised its stake in shares of Karooooo by 465.6% in the 2nd quarter. New York State Common Retirement Fund now owns 3,258 shares of the company’s stock valued at $160,000 after buying an additional 2,682 shares in the last quarter. Finally, State of Tennessee Department of Treasury acquired a new position in shares of Karooooo in the 2nd quarter valued at $214,000.

Key Karooooo News

Here are the key news stories impacting Karooooo this week:

Positive Sentiment: Karooooo’s latest quarterly results showed adjusted strength: EPS of $0.59 exceeded the $0.51 consensus estimate, while revenue reached $96.26 million. Analysts expect approximately $2.41 in full-year EPS, supporting the company’s premium valuation. Karooooo stock and earnings information
Positive Sentiment: The company raised its annual dividend to $1.50 from $1.25. Although the payout ratio is relatively high, the increase may reinforce investor confidence in Karooooo’s cash generation and shareholder returns.
Positive Sentiment: Analyst sentiment remains favorable. The consensus rating is “Buy,” with an average price target of $73.50, above recent trading levels. Roth Capital, Needham and UBS have maintained or issued buy ratings with targets ranging from $70 to $75.
Neutral Sentiment: Three AAII articles compare Karooooo with Appian, Adeia and ACI Worldwide as potential investments. These are comparative screening pieces rather than company-specific developments, so they may have limited immediate impact on KARO. Appian versus Karooooo comparison Adeia versus Karooooo comparison ACI Worldwide versus Karooooo comparison
Negative Sentiment: CEO Isaias Jose Calisto sold a combined 79,944 shares on August 4 and 5 for approximately $3.89 million, following additional sales on August 3 and in late July. The transactions reduced his ownership only marginally—less than 0.2% in each reported sale—but the repeated insider selling near the stock’s highs can raise concerns about valuation or near-term upside.

About Karooooo

(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.