Dark Forest Capital Management LP Acquires New Shares in TKO Group Holdings, Inc. $TKO

Key Points

• Dark Forest Capital Management LP purchased 23,294 shares of TKO Group Holdings, valued at approximately $3,560,000, indicating strong institutional interest in the company.
• TKO Group reported $1.31 billion in revenue for the latest quarter, exceeding analyst estimates and showing a 53.7% year-over-year increase.
• Insider transactions showed mixed activity, with Director Nick Khan selling 9,519 shares while another director purchased 980 shares, reflecting varying confidence levels among executives.

Dark Forest Capital Management LP bought a new position in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 23,294 shares of the company's stock, valued at approximately $3,560,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in TKO. Vanguard Group Inc. lifted its holdings in TKO Group by 19.4% in the 1st quarter. Vanguard Group Inc. now owns 7,976,904 shares of the company's stock worth $1,218,951,000 after purchasing an additional 1,295,817 shares during the last quarter. Invesco Ltd. lifted its holdings in TKO Group by 569.7% in the 1st quarter. Invesco Ltd. now owns 1,423,052 shares of the company's stock worth $217,457,000 after purchasing an additional 1,210,563 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in TKO Group by 242.6% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 1,496,462 shares of the company's stock worth $228,675,000 after purchasing an additional 1,059,636 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in TKO Group by 57.3% in the 4th quarter. Ameriprise Financial Inc. now owns 1,678,258 shares of the company's stock worth $238,574,000 after purchasing an additional 611,178 shares during the last quarter. Finally, Sequoia Financial Advisors LLC acquired a new stake in TKO Group in the 1st quarter worth approximately $71,834,000. 89.79% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research analysts have commented on TKO shares. Morgan Stanley reaffirmed an "outperform" rating on shares of TKO Group in a research report on Sunday, August 10th. Zacks Research upgraded TKO Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 2nd. The Goldman Sachs Group boosted their price objective on TKO Group from $170.00 to $188.00 and gave the company a "buy" rating in a research report on Monday, May 12th. JPMorgan Chase & Co. boosted their price objective on TKO Group from $182.00 to $212.00 and gave the company an "overweight" rating in a research report on Thursday, August 21st. Finally, Northcoast Research cut TKO Group from a "buy" rating to a "neutral" rating in a research report on Thursday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $192.21.

TKO Group Price Performance

NYSE:TKO traded up $3.67 during trading hours on Friday, reaching $193.75. The company had a trading volume of 713,059 shares, compared to its average volume of 872,041. The stock has a 50-day moving average of $176.78 and a two-hundred day moving average of $163.88. TKO Group Holdings, Inc. has a one year low of $113.16 and a one year high of $195.63. The firm has a market capitalization of $38.42 billion, a PE ratio of 80.06 and a beta of 0.79. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28.

TKO Group (NYSE:TKO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $1.17 earnings per share for the quarter, missing analysts' consensus estimates of $1.23 by ($0.06). The company had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.23 billion. TKO Group had a net margin of 5.40% and a return on equity of 2.82%. The business's revenue was up 53.7% on a year-over-year basis. During the same quarter last year, the company earned $0.72 earnings per share. Analysts forecast that TKO Group Holdings, Inc. will post 3.88 earnings per share for the current year.

TKO Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a $0.76 dividend. This is an increase from TKO Group's previous quarterly dividend of $0.38. This represents a $3.04 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Monday, September 15th. TKO Group's payout ratio is presently 62.81%.

Insider Activity

In other news, Director Nick Khan sold 45,168 shares of the company's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $170.82, for a total transaction of $7,715,597.76. Following the transaction, the director owned 156,494 shares of the company's stock, valued at $26,732,305.08. This represents a 22.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders sold a total of 73,725 shares of company stock worth $12,767,807 over the last quarter. Corporate insiders own 61.30% of the company's stock.

TKO Group Profile

TKO Group Holdings, Inc operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets.