TKO Group Holdings, Inc. (NYSE:TKO) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on TKO Group, with 11 buy ratings and six holds among 17 firms. The average 12-month price target is approximately $238.08, above the stock’s reported $193.56 price.
• TKO’s latest quarterly revenue rose 18.2% year over year to $1.55 billion, exceeding expectations, though earnings per share of $1.34 fell short of the $1.41 consensus estimate.
• The company increased its quarterly dividend to $0.79 per share, equivalent to a $3.16 annualized payout and a 1.6% yield. Insiders have sold approximately $23.2 million of stock over the past 90 days, primarily to cover tax obligations tied to equity awards.

Shares of TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) have received an average rating of "Moderate Buy" from the seventeen ratings firms that are covering the company, Marketbeat.com reports. Six investment analysts have rated the stock with a hold recommendation and eleven have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $238.0769.

Several equities analysts have recently issued reports on TKO shares. Weiss Ratings reiterated a "hold (c+)" rating on shares of TKO Group in a research note on Tuesday, August 4th. Morgan Stanley raised their target price on shares of TKO Group from $225.00 to $230.00 and gave the company an "overweight" rating in a report on Tuesday, August 4th. Guggenheim lifted their price target on shares of TKO Group from $230.00 to $235.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. JPMorgan Chase & Co. lowered their price target on shares of TKO Group from $225.00 to $222.00 and set an "overweight" rating for the company in a report on Tuesday, July 21st. Finally, Wall Street Zen raised shares of TKO Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th.

Insiders Place Their Bets

In related news, CFO Andrew M. Schleimer sold 9,942 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total value of $1,932,625.38. Following the transaction, the chief financial officer owned 38,051 shares of the company's stock, valued at $7,396,733.89. This represents a 20.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nick Khan sold 12,998 shares of the firm's stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $181.11, for a total value of $2,354,067.78. Following the completion of the sale, the director owned 48,933 shares in the company, valued at approximately $8,862,255.63. This represents a 20.99% 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. Over the last ninety days, insiders sold 120,404 shares of company stock worth $23,196,582. 64.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On TKO Group

Several institutional investors have recently added to or reduced their stakes in TKO. CreativeOne Wealth LLC boosted its holdings in TKO Group by 2.1% in the fourth quarter. CreativeOne Wealth LLC now owns 2,586 shares of the company's stock valued at $541,000 after purchasing an additional 54 shares in the last quarter. Stephens Inc. AR lifted its position in shares of TKO Group by 2.7% during the 4th quarter. Stephens Inc. AR now owns 2,160 shares of the company's stock worth $451,000 after buying an additional 56 shares during the last quarter. Sunbelt Securities Inc. lifted its position in shares of TKO Group by 6.3% during the 3rd quarter. Sunbelt Securities Inc. now owns 950 shares of the company's stock worth $192,000 after buying an additional 56 shares during the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of TKO Group by 29.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 249 shares of the company's stock valued at $52,000 after buying an additional 57 shares in the last quarter. Finally, Colonial River Investments LLC boosted its holdings in shares of TKO Group by 4.5% in the 4th quarter. Colonial River Investments LLC now owns 1,414 shares of the company's stock valued at $296,000 after buying an additional 61 shares in the last quarter. Hedge funds and other institutional investors own 89.79% of the company's stock.

TKO Group Stock Up 0.2%

TKO Group stock opened at $193.56 on Tuesday. The firm has a market capitalization of $36.64 billion, a P/E ratio of 67.92 and a beta of 0.63. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.58. TKO Group has a twelve month low of $176.00 and a twelve month high of $226.94. The stock's fifty day simple moving average is $191.97 and its 200-day simple moving average is $196.49.

TKO Group (NYSE:TKO - Get Free Report) last released its earnings results on Monday, August 3rd. The company reported $1.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.41 by ($0.07). TKO Group had a net margin of 4.33% and a return on equity of 2.67%. The company had revenue of $1.55 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same quarter last year, the business posted $1.17 earnings per share. The company's revenue for the quarter was up 18.2% on a year-over-year basis. As a group, equities analysts expect that TKO Group will post 5.18 earnings per share for the current fiscal year.

TKO Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a dividend of $0.79 per share. The ex-dividend date was Monday, June 15th. This is an increase from TKO Group's previous quarterly dividend of $0.78. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.6%. TKO Group's payout ratio is presently 110.88%.

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.

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