Susquehanna Issues Pessimistic Forecast for TKO Group (NYSE:TKO) Stock Price

Key Points

• Susquehanna trimmed its TKO price target from $224 to $223 but maintained a positive rating; its target implies about 15.4% upside from the prior close.
• Analyst sentiment remains broadly favorable: TKO has a “Moderate Buy” consensus and an average price target of $228.59, with 14 Buy and five Hold ratings.
• TKO beat quarterly EPS expectations ($1.33 versus $1.20) and revenue grew 21.4% year over year, though revenue narrowly missed forecasts and WWE revenue declined.

TKO Group (NYSE:TKO - Get Free Report) had its price target lowered by Susquehanna from $224.00 to $223.00 in a research note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "positive" rating on the stock. Susquehanna's price objective suggests a potential upside of 15.40% from the company's previous close.

Several other research firms also recently weighed in on TKO. Rothschild & Co Redburn raised their target price on TKO Group from $220.00 to $225.00 in a research report on Wednesday, August 5th. Sanford C. Bernstein boosted their price target on TKO Group from $235.00 to $240.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 16th. JPMorgan Chase & Co. reduced their price objective on TKO Group from $225.00 to $222.00 and set an "overweight" rating for the company in a research note on Tuesday, July 21st. Morgan Stanley raised their price objective on TKO Group from $225.00 to $230.00 and gave the company an "overweight" rating in a report on Tuesday, August 4th. Finally, Arete Research upgraded TKO Group from a "neutral" rating to a "buy" rating and set a $208.00 price objective on the stock in a report on Tuesday, October 20th. Fourteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $228.59.

TKO Group Stock Up 3.2%

TKO stock opened at $193.25 on Thursday. The stock has a market capitalization of $36.58 billion, a P/E ratio of 67.81 and a beta of 0.66. The firm has a 50-day simple moving average of $182.51 and a 200-day simple moving average of $193.25. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.58. TKO Group has a 52 week low of $170.14 and a 52 week high of $226.94.

TKO Group (NYSE:TKO - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $1.33 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.13. TKO Group had a net margin of 4.33% and a return on equity of 2.67%. The firm had revenue of $1.36 billion during the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the prior year, the firm earned $0.47 EPS. The company's revenue for the quarter was up 21.4% on a year-over-year basis. Equities analysts forecast that TKO Group will post 4.43 earnings per share for the current fiscal year.

Insider Activity

In other TKO Group news, Director Nick Khan sold 9,589 shares of TKO Group stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $197.17, for a total transaction of $1,890,663.13. Following the transaction, the director directly owned 39,344 shares of the company's stock, valued at $7,757,456.48. The trade was a 19.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark Shapiro sold 19,120 shares of the business's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $3,716,736.80. Following the completion of the transaction, the insider owned 147,071 shares in the company, valued at $28,589,131.69. The trade was a 11.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 97,325 shares of company stock valued at $18,798,012 over the last three months. 64.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in TKO. Lido Advisors LLC grew its position in TKO Group by 76.3% in the 3rd quarter. Lido Advisors LLC now owns 2,587 shares of the company's stock valued at $465,000 after acquiring an additional 1,120 shares in the last quarter. Keybank National Association OH lifted its position in shares of TKO Group by 5.7% during the third quarter. Keybank National Association OH now owns 6,318 shares of the company's stock worth $1,135,000 after purchasing an additional 342 shares in the last quarter. Accuvest Global Advisors acquired a new stake in shares of TKO Group during the third quarter worth about $485,000. Alps Advisors Inc. acquired a new stake in shares of TKO Group during the third quarter worth about $11,013,000. Finally, CenterBook Partners LP boosted its stake in shares of TKO Group by 235.8% in the third quarter. CenterBook Partners LP now owns 111,589 shares of the company's stock valued at $20,055,000 after purchasing an additional 78,359 shares during the period. 89.79% of the stock is currently owned by institutional investors and hedge funds.

Key TKO Group News

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: TKO earned $1.33 per share, beating the $1.20 consensus and rising from $0.50 a year earlier. Revenue increased 21.4% year over year to $1.36 billion, and the company raised its full-year guidance again. TKO third-quarter results
• Positive Sentiment: UFC was the main growth engine: revenue surged 60% to $519.2 million, helping lift earnings above forecasts. UFC growth helps TKO beat earnings forecasts
• Neutral Sentiment: Management said it expects WWE and UFC events in the Middle East to proceed as planned, including WrestleMania 43 in Saudi Arabia. TKO’s president said half of the event fee has already been paid upfront, offering some protection, though geopolitical uncertainty remains a risk. TKO discusses WrestleMania 43 Saudi Arabia plans
• Negative Sentiment: Revenue came in slightly below analysts’ $1.38 billion estimate, and WWE revenue dipped, tempering the otherwise strong quarterly report. TKO Q3 results and WWE revenue

About TKO Group

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates UFC and WWE, two global combat-sports and sports-entertainment brands. UFC promotes mixed martial arts events, while WWE produces live and televised professional wrestling programming featuring its roster of performers, storylines and branded events.

In addition to its core properties, TKO provides related media, licensing, sponsorship, live-event and consumer-products opportunities. The company's businesses serve audiences internationally through live events, broadcast and streaming distribution, digital content, merchandise and other commercial partnerships.

TKO was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings.

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