Adams Diversified Equity Fund Inc. Buys Shares of 54,300 TKO Group Holdings, Inc. $TKO

Key Points

• Adams Diversified Equity Fund Inc. purchased 54,300 shares of TKO Group Holdings, Inc., valued at approximately $9.88 million.
• TKO Group reported a net income margin of 5.4% in its last earnings report, with quarterly revenue increasing by 53.7% year-over-year.
• The company's Board of Directors approved a $1 billion share buyback program and recently increased its quarterly dividend from $0.38 to $0.76.

Adams Diversified Equity Fund Inc. bought a new stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 54,300 shares of the company's stock, valued at approximately $9,880,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Whittier Trust Co. grew its holdings in TKO Group by 350.0% in the 2nd quarter. Whittier Trust Co. now owns 135 shares of the company's stock valued at $25,000 after buying an additional 105 shares during the last quarter. Hemington Wealth Management grew its holdings in TKO Group by 425.0% in the 1st quarter. Hemington Wealth Management now owns 168 shares of the company's stock valued at $25,000 after buying an additional 136 shares during the last quarter. N.E.W. Advisory Services LLC acquired a new stake in TKO Group in the 1st quarter valued at approximately $26,000. Bartlett & CO. Wealth Management LLC acquired a new stake in TKO Group in the 1st quarter valued at approximately $27,000. Finally, Eastern Bank acquired a new stake in TKO Group in the 2nd quarter valued at approximately $34,000. Institutional investors and hedge funds own 89.79% of the company's stock.

TKO Group Stock Down 0.3%

NYSE TKO opened at $186.18 on Wednesday. The stock has a fifty day moving average of $193.15 and a 200-day moving average of $174.10. The stock has a market capitalization of $36.92 billion, a P/E ratio of 76.93 and a beta of 0.76. TKO Group Holdings, Inc. has a 52 week low of $114.01 and a 52 week high of $212.49. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.30 and a current ratio of 1.30.

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

TKO Group announced that its Board of Directors has approved a share repurchase program on Monday, September 15th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to repurchase up to 2.5% of its shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its shares are undervalued.

TKO Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th were paid a $0.76 dividend. This is an increase from TKO Group's previous quarterly dividend of $0.38. The ex-dividend date of this dividend was Monday, September 15th. This represents a $3.04 annualized dividend and a dividend yield of 1.6%. TKO Group's payout ratio is 125.62%.

Insider Buying and Selling at TKO Group

In other news, Director Peter C. B. Bynoe bought 740 shares of the stock in a transaction dated Tuesday, September 16th. The stock was bought at an average cost of $203.00 per share, with a total value of $150,220.00. Following the purchase, the director owned 5,187 shares of the company's stock, valued at approximately $1,052,961. This represents a 16.64% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Nick Khan sold 9,519 shares of TKO Group stock in a transaction on Friday, October 3rd. The stock was sold at an average price of $197.82, for a total value of $1,883,048.58. Following the sale, the director directly owned 128,023 shares of the company's stock, valued at approximately $25,325,509.86. This trade represents a 6.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. 53.80% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Morgan Stanley raised their target price on TKO Group from $165.00 to $205.00 and gave the company an "equal weight" rating in a report on Thursday, September 25th. Northcoast Research lowered TKO Group from a "buy" rating to a "neutral" rating in a report on Thursday, July 10th. Robert W. Baird lifted their price objective on TKO Group from $225.00 to $250.00 and gave the stock an "outperform" rating in a report on Tuesday, September 16th. Baird R W raised TKO Group to a "strong-buy" rating in a report on Friday, September 5th. Finally, Citigroup lifted their price objective on TKO Group from $200.00 to $225.00 and gave the stock a "buy" rating in a report on Friday, August 15th. Three investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, TKO Group currently has a consensus rating of "Moderate Buy" and an average target price of $210.21.

About TKO Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.