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

Key Points

• Analyst sentiment is moderately bullish: Sixteen brokerages rate TKO Group a consensus “Moderate Buy,” with ten buys and six holds. The average 12-month price target is $237.50, above the recent share price of $189.01.
• Quarterly results were mixed: Revenue rose 18.2% year over year to $1.55 billion, slightly exceeding expectations, but earnings per share of $1.34 missed consensus by $0.07.
• Insider selling and dividend activity stand out: Insiders sold about $23.1 million in stock during the past quarter, while TKO announced a quarterly dividend of $0.79 per share, representing a 1.7% annualized yield.

TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) has earned an average rating of "Moderate Buy" from the sixteen research firms that are covering the stock, MarketBeat Ratings reports. Six analysts have rated the stock with a hold recommendation and ten have issued a buy recommendation on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $237.50.

Several equities analysts recently commented on the company. Guggenheim increased their target price on TKO Group from $230.00 to $235.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Sanford C. Bernstein lifted their price target on TKO Group from $235.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of TKO Group in a research report on Tuesday, August 4th. Roth Capital reiterated a "buy" rating and issued a $230.00 price objective on shares of TKO Group in a report on Tuesday, August 4th. Finally, BTIG Research reissued a "buy" rating and set a $237.00 target price on shares of TKO Group in a research report on Tuesday, August 4th.

Insider Activity at TKO Group

In related news, Director Nick Khan sold 12,998 shares of the 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 transaction, the director directly owned 48,933 shares of the company's stock, valued at $8,862,255.63. This trade represents a 20.99% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ariel Emanuel sold 24,702 shares of TKO Group stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total transaction of $4,801,821.78. Following the sale, the chief executive officer owned 174,334 shares in the company, valued at $33,888,786.26. This represents a 12.41% 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. In the last quarter, insiders have sold 120,404 shares of company stock worth $23,073,938. Corporate insiders own 64.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in TKO. Geode Capital Management LLC grew its position in shares of TKO Group by 2.7% during the fourth quarter. Geode Capital Management LLC now owns 1,855,077 shares of the company's stock worth $387,072,000 after acquiring an additional 49,486 shares during the last quarter. Bank of America Corp DE boosted its stake in TKO Group by 22.5% during the 1st quarter. Bank of America Corp DE now owns 1,393,727 shares of the company's stock worth $281,045,000 after purchasing an additional 256,305 shares during the period. Vontobel Holding Ltd. grew its position in TKO Group by 108,668.4% during the 4th quarter. Vontobel Holding Ltd. now owns 1,268,239 shares of the company's stock worth $265,062,000 after purchasing an additional 1,267,073 shares during the last quarter. Norges Bank purchased a new position in TKO Group during the 4th quarter worth $150,602,000. Finally, Munro Partners increased its stake in TKO Group by 24.4% in the fourth quarter. Munro Partners now owns 712,256 shares of the company's stock valued at $148,862,000 after purchasing an additional 139,600 shares during the period. Hedge funds and other institutional investors own 89.79% of the company's stock.

TKO Group Stock Down 0.2%

Shares of TKO Group stock opened at $189.01 on Friday. TKO Group has a 52-week low of $176.00 and a 52-week high of $226.94. The company has a 50 day moving average of $188.33 and a 200 day moving average of $193.75. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $35.77 billion, a P/E ratio of 66.32 and a beta of 0.62.

TKO Group (NYSE:TKO - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The company reported $1.34 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 firm had revenue of $1.55 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same period in the prior year, the company 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, research analysts forecast that TKO Group will post 5.18 EPS for the current fiscal year.

TKO Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th will be issued a $0.79 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $3.16 annualized dividend and a dividend yield of 1.7%. TKO Group's dividend payout ratio is presently 110.88%.

About TKO Group

TKO Group Holdings, Inc is a sports and entertainment company formed in 2023 through the combination of Endeavor Group Holdings' Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE) businesses. The company operates two globally recognized sports properties, producing live events and distributing related programming through television, streaming, digital media and other platforms.

UFC is a mixed martial arts organization that promotes events, develops athletes and licenses media rights, sponsorships, merchandise and other commercial products.

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