Stock Repurchase Plan Declared by TKO Group (NYSE:TKO)

TKO Group (NYSE:TKO) announced that its Board of Directors has approved a share repurchase program on Monday, September 15th, RTT News reports. The company plans to repurchase $1.00 billion in shares. This repurchase authorization allows the company to buy up to 2.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

TKO Group Trading Up 1.2%

Shares of NYSE:TKO opened at $204.78 on Tuesday. TKO Group has a 52-week low of $114.01 and a 52-week high of $212.49. The stock has a market cap of $40.61 billion, a price-to-earnings ratio of 84.62 and a beta of 0.78. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28. The business has a 50-day moving average price of $179.51 and a 200-day moving average price of $165.73.

TKO Group (NYSE:TKO) last posted its earnings results on Wednesday, August 6th. The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.23 by ($0.06). The company had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.23 billion. TKO Group had a return on equity of 2.82% and a net margin of 5.40%.The firm’s revenue was up 53.7% on a year-over-year basis. During the same period last year, the business earned $0.72 earnings per share. Equities analysts predict that TKO Group will post 3.88 EPS for the current year.

TKO Group Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be paid a $0.76 dividend. This is a boost from TKO Group’s previous quarterly dividend of $0.38. This represents a $3.04 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Monday, September 15th. TKO Group’s dividend payout ratio is presently 62.81%.

Analyst Upgrades and Downgrades

TKO has been the subject of several recent research reports. Robert W. Baird initiated coverage on TKO Group in a research report on Friday, September 5th. They set an “outperform” rating and a $225.00 price objective for the company. Guggenheim raised their price objective on TKO Group from $200.00 to $205.00 and gave the company a “buy” rating in a research report on Wednesday, August 13th. Sanford C. Bernstein initiated coverage on TKO Group in a research report on Wednesday, June 4th. They set an “outperform” rating and a $190.00 price objective for the company. Citigroup raised their price objective on TKO Group from $200.00 to $225.00 and gave the company a “buy” rating in a research report on Friday, August 15th. Finally, Northcoast Research lowered TKO Group from a “buy” rating to a “neutral” rating in a research report on Thursday, July 10th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, TKO Group presently has an average rating of “Moderate Buy” and a consensus price target of $192.21.

Insider Activity

In other TKO Group news, Director Nick Khan sold 9,519 shares of the business’s stock in a transaction on Wednesday, September 3rd. The stock was sold at an average price of $186.43, for a total transaction of $1,774,627.17. Following the transaction, the director owned 137,456 shares of the company’s stock, valued at approximately $25,625,922.08. The trade was a 6.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders sold 73,725 shares of company stock valued at $12,767,807 over the last quarter. Insiders own 53.80% of the company’s stock.

About TKO Group

TKO Group Holdings, Inc operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets.