Karooooo (NASDAQ:KARO) Shares Gap Up on Strong Earnings

Karooooo Ltd. (NASDAQ:KARO) gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $44.90, but opened at $47.99. Karooooo shares last traded at $48.09, with a volume of 11,869 shares trading hands.

The company reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.07. The business had revenue of $65.12 million during the quarter, compared to analysts’ expectations of $1.18 billion. Karooooo had a net margin of 19.87% and a return on equity of 30.29%. During the same quarter last year, the company posted $6.81 EPS.

Wall Street Analysts Forecast Growth

Separately, Raymond James lifted their price target on shares of Karooooo from $51.00 to $58.00 and gave the stock an “outperform” rating in a research report on Friday.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. State of Wyoming bought a new stake in shares of Karooooo in the first quarter worth $418,000. Credit Agricole S A lifted its position in Karooooo by 95.5% during the first quarter. Credit Agricole S A now owns 14,049 shares of the company’s stock worth $598,000 after purchasing an additional 6,861 shares during the period. Capricorn Fund Managers Ltd lifted its position in Karooooo by 8.0% during the first quarter. Capricorn Fund Managers Ltd now owns 143,470 shares of the company’s stock worth $6,103,000 after purchasing an additional 10,586 shares during the period. Nipun Capital L.P. bought a new position in shares of Karooooo in the first quarter worth about $242,000. Finally, Squarepoint Ops LLC lifted its holdings in shares of Karooooo by 6.8% in the fourth quarter. Squarepoint Ops LLC now owns 9,494 shares of the company’s stock worth $429,000 after acquiring an additional 602 shares during the last quarter.

Karooooo Price Performance

The company has a market cap of $1.68 billion, a price-to-earnings ratio of 34.92 and a beta of 1.03. The company has a 50 day moving average price of $42.14 and a 200-day moving average price of $43.94. The company has a quick ratio of 1.24, a current ratio of 1.25 and a debt-to-equity ratio of 0.14.

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.