TKO Group Holdings, Inc. (TKO) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analysts remain broadly positive: TKO has a “Moderate Buy” consensus from 16 firms, with 10 buy ratings and six holds. The average 12-month price target is $237.50, well above the reported share price of $173.62.
• Institutional ownership is substantial: Institutional investors and hedge funds own 89.79% of TKO, with several firms—including Bank of America and Munro Partners—recently increasing their positions.
• Recent results were mixed: Quarterly revenue rose 18.2% year over year to $1.55 billion, exceeding estimates, but EPS of $1.34 missed consensus by $0.07. Insiders sold more than $21.3 million of stock over the past 90 days, while the company paid a $0.79 quarterly dividend.

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

Several research analysts recently weighed in on the company. Roth Capital reaffirmed a "buy" rating and set a $230.00 target price on shares of TKO Group in a research note on Tuesday, August 4th. Seaport Research Partners reiterated a "buy" rating on shares of TKO Group in a research report on Friday. Guggenheim upped their price target on shares of TKO Group from $230.00 to $235.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. JPMorgan Chase & Co. cut 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, Weiss Ratings restated a "hold (c+)" rating on shares of TKO Group in a research report on Tuesday, August 4th.

Insider Buying and Selling at TKO Group

In related news, CEO Ariel Emanuel sold 24,702 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $4,801,821.78. Following the completion of the sale, the chief executive officer directly owned 174,334 shares in the company, valued at approximately $33,888,786.26. This trade represents a 12.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nick Khan sold 9,589 shares of TKO Group stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $194.77, for a total transaction of $1,867,649.53. Following the completion of the transaction, the director owned 29,751 shares in the company, valued at approximately $5,794,602.27. This trade represents a 24.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 110,815 shares of company stock valued at $21,322,699 in the last ninety days. Company insiders own 64.30% of the company's stock.

Institutional Investors Weigh In On TKO Group

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Bank of America Corp DE raised its holdings in shares of TKO Group by 22.5% during the first quarter. Bank of America Corp DE now owns 1,393,727 shares of the company's stock valued at $281,045,000 after acquiring an additional 256,305 shares during the period. Munro Partners lifted its position in shares of TKO Group by 24.4% in the 4th quarter. Munro Partners now owns 712,256 shares of the company's stock valued at $148,862,000 after acquiring an additional 139,600 shares in the last quarter. Annex Advisory Services LLC boosted its stake in TKO Group by 1.3% in the 2nd quarter. Annex Advisory Services LLC now owns 418,586 shares of the company's stock worth $84,266,000 after purchasing an additional 5,483 shares during the period. Hawk Ridge Capital Management LP boosted its stake in TKO Group by 16.5% in the 1st quarter. Hawk Ridge Capital Management LP now owns 413,641 shares of the company's stock worth $83,411,000 after purchasing an additional 58,604 shares during the period. Finally, Cat Rock Capital Management LP boosted its stake in TKO Group by 10.7% in the 2nd quarter. Cat Rock Capital Management LP now owns 339,211 shares of the company's stock worth $68,287,000 after purchasing an additional 32,700 shares during the period. Institutional investors and hedge funds own 89.79% of the company's stock.

TKO Group Stock Performance

Shares of NYSE TKO opened at $173.62 on Wednesday. TKO Group has a 1 year low of $171.19 and a 1 year high of $226.94. The firm has a market cap of $32.86 billion, a P/E ratio of 60.92 and a beta of 0.67. The stock has a fifty day moving average price of $187.31 and a two-hundred day moving average price of $191.00. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.28 and a current ratio of 1.28.

TKO Group (NYSE:TKO - Get Free Report) last posted 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). The firm had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.54 billion. TKO Group had a return on equity of 2.67% and a net margin of 4.33%. The firm's quarterly revenue was up 18.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.17 EPS. Research analysts forecast that TKO Group will post 4.42 EPS for the current fiscal year.

TKO Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a $0.79 dividend. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Tuesday, September 15th. TKO Group's payout ratio is presently 110.88%.

About TKO Group

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). The company was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings, creating a platform focused on live sports and entertainment properties.

UFC organizes and promotes mixed martial arts events, distributes related media content, and manages sponsorship, licensing, and consumer products. WWE produces professional wrestling programming and live events, including its flagship brands and premium events, while also generating revenue through media rights, sponsorships, licensing, merchandise, and digital content.

TKO serves audiences and commercial partners internationally through televised and streaming programming, live events, and licensed products.

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