TKO Group Holdings, Inc. (NYSE:TKO) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Shares of TKO Group Holdings, Inc. (NYSE:TKO) have received an average rating of “Moderate Buy” from the twenty-three analysts that are presently covering the firm, MarketBeat.com reports. Six analysts have rated the stock with a hold recommendation, fifteen have given a buy recommendation and two have assigned a strong buy recommendation to the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $226.00.

Several brokerages have weighed in on TKO. Zacks Research cut TKO Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, November 4th. Wolfe Research reiterated an “outperform” rating and issued a $227.00 target price on shares of TKO Group in a report on Monday, December 15th. Pivotal Research boosted their target price on TKO Group from $225.00 to $235.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Morgan Stanley set a $210.00 price target on TKO Group in a report on Thursday, December 18th. Finally, TD Cowen raised their price target on TKO Group from $230.00 to $245.00 and gave the stock a “buy” rating in a research report on Monday, December 8th.

TKO Group Trading Down 1.3%

Shares of TKO opened at $199.51 on Monday. The stock has a market capitalization of $38.92 billion, a PE ratio of 76.44 and a beta of 0.62. The company’s fifty day moving average is $197.97 and its 200 day moving average is $189.27. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.46 and a current ratio of 1.46. TKO Group has a fifty-two week low of $133.07 and a fifty-two week high of $218.11.

TKO Group (NYSE:TKO) last issued its quarterly earnings data on Wednesday, November 5th. The company reported $0.47 EPS for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.11). The business had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.12 billion. TKO Group had a return on equity of 2.57% and a net margin of 5.27%.The business’s quarterly revenue was down 27.3% on a year-over-year basis. During the same period in the previous year, the business earned $0.28 earnings per share. Sell-side analysts expect that TKO Group will post 3.88 earnings per share for the current fiscal year.

TKO Group declared that its board has approved a share repurchase program on Monday, September 15th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to purchase up to 2.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

TKO Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Stockholders of record on Monday, December 15th were issued a $0.78 dividend. This is a boost from TKO Group’s previous quarterly dividend of $0.76. The ex-dividend date was Monday, December 15th. This represents a $3.12 annualized dividend and a dividend yield of 1.6%. TKO Group’s dividend payout ratio (DPR) is 119.54%.

Insider Activity at TKO Group

In related news, CFO Shane Kapral sold 1,946 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $204.21, for a total value of $397,392.66. Following the sale, the chief financial officer directly owned 4,104 shares of the company’s stock, valued at $838,077.84. This represents a 32.17% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Nick Khan sold 37,425 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $204.01, for a total value of $7,635,074.25. Following the transaction, the director owned 122,868 shares of the company’s stock, valued at $25,066,300.68. This trade represents a 23.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 107,948 shares of company stock worth $21,817,883 in the last three months. 53.80% of the stock is owned by insiders.

Hedge Funds Weigh In On TKO Group

A number of institutional investors have recently modified their holdings of the stock. State Street Corp boosted its holdings in shares of TKO Group by 20.3% in the third quarter. State Street Corp now owns 5,249,091 shares of the company’s stock valued at $1,060,106,000 after purchasing an additional 887,401 shares during the period. Ninety One UK Ltd raised its position in TKO Group by 2.4% during the 3rd quarter. Ninety One UK Ltd now owns 4,964,002 shares of the company’s stock valued at $1,002,530,000 after purchasing an additional 113,996 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in shares of TKO Group by 2.7% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 2,057,020 shares of the company’s stock worth $415,436,000 after buying an additional 53,818 shares during the period. Invesco Ltd. lifted its holdings in shares of TKO Group by 26.9% in the 2nd quarter. Invesco Ltd. now owns 1,806,377 shares of the company’s stock worth $328,670,000 after buying an additional 383,325 shares during the period. Finally, UBS Group AG grew its position in shares of TKO Group by 31.7% during the 3rd quarter. UBS Group AG now owns 1,274,142 shares of the company’s stock worth $257,326,000 after buying an additional 307,000 shares in the last quarter. 89.79% of the stock is owned by hedge funds and other institutional investors.

TKO Group Company Profile

TKO Group Holdings (NYSE: TKO) is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.

TKO’s core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.