South African billionaire Zak Calisto sells $6.3 million of Karooooo stock in four days

Isaias Jose Calisto sold Karooooo shares on four consecutive trading days last week, disposing of 98,476 shares worth about $6.3 million as the stock traded within 3% of its 52-week high.

The South African founder and chief executive sold 25,913 shares at an average $63.44 on Monday, 22,036 at $64.19 on Tuesday, 31,897 at $64.43 on Wednesday and 18,630 at $63.47 on Thursday. The transactions were disclosed in filings with the United States Securities and Exchange Commission.

He retains 17,838,112 shares held directly, worth approximately $1.149 billion. The week's sales reduced that position by roughly half a percentage point.

Timing is what makes the pattern notable. Karooooo closed Friday at $64.23, against a 52-week range of $41.25 to $66.23. The stock sits 28% above its 200-day moving average of $49.97 and 21% above its 50-day average of $53.10. Calisto sold into the strongest levels the shares have reached.

He also sold after two pieces of good news rather than before them.

Karooooo reported quarterly earnings on 16 July, posting earnings per share of $0.59 against a consensus estimate of $0.51, on revenue of $96.26 million. Return on equity came in at 32.03% and net margin at 17.74%. The company then paid an increased annual dividend of $1.50 a share on 27 July, up from $1.25, with a payout ratio of 76.14%.

The first sale followed the day after that dividend was paid.

Analysts have grown more positive through the same period. UBS reaffirmed a buy rating with a $75 target on 16 July. Needham raised its target to $70 from $60 on 14 July. Zacks upgraded the stock to strong buy on 7 July. Wall Street Zen moved the other way, cutting it to hold on 21 June. Seven analysts now carry a consensus buy rating with an average target of $73.50, implying about 14% upside from Friday's close.

Institutional investors have been accumulating. Capricorn Fund Managers raised its holding 39.4% in the fourth quarter to 238,078 shares. Bullseye Asset Management increased its position 101.7%. Aurora Investment Counsel opened a new position worth $1.65 million. Tudor Investment lifted its holding 238.3% in the third quarter.

So the founder was selling into a rising market while institutions were buying and analysts were upgrading.

Calisto's disclosed holding is smaller than headline ownership figures suggest, because the direct position sits alongside shares held through his private vehicle. Insider ownership at Karooooo has run between 69% and 75% in recent years, among the highest concentrations of any Nasdaq-listed company, with Calisto consistently identified as the largest holder by a wide margin.

He has sold larger blocks before. In 2024 he disposed of 248,932 shares in a single transaction, and a separate sale netted about $75 million at an average $50 a share, cutting his holding by 6.6%.

Karooooo carries a market capitalisation of $1.98 billion, trades on 32.61 times earnings and has a beta of 0.89. Its quick ratio is 1.01, current ratio 1.02 and debt to equity 0.15.

The company is the holding structure for Cartrack, the vehicle telematics business Calisto founded in South Africa in 2004. It provides GPS tracking, stolen vehicle recovery and driver behaviour analytics to commercial fleets and insurers, pairing proprietary hardware with cloud analytics and mobile applications, and operates across Africa, Europe and Southeast Asia.

It listed on Nasdaq in April 2021 through an unusual arrangement placing a Singapore-registered parent above the South African operating business, and retains a secondary listing in Johannesburg. The company reaffirmed its guidance for the 2027 financial year in late July and passed all resolutions at its annual general meeting.

Neither Calisto nor the company has commented on the sales. Filings of this kind disclose the transaction but not the reason, and executives sell for reasons including tax, diversification and pre-arranged trading plans.