Adams Diversified Equity Fund Inc. Increases Position in TKO Group Holdings, Inc. $TKO

Key Points

• Adams Diversified Equity Fund increased its TKO Group stake by 63% in the fourth quarter, ending with 88,500 shares valued at about $18.5 million.
• TKO reported solid quarterly results, with EPS of $1.12 beating estimates by a penny and revenue of $1.60 billion topping expectations, while revenue jumped 25.9% year over year.
• Management and the board are active in capital returns and insider trading: TKO raised its quarterly dividend to $0.79 per share, while insider activity included a sale by Director Nick Khan and a purchase by insider Mark S. Shapiro.

Adams Diversified Equity Fund Inc. boosted its position in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 63.0% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 88,500 shares of the company's stock after buying an additional 34,200 shares during the quarter. Adams Diversified Equity Fund Inc.'s holdings in TKO Group were worth $18,496,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of TKO. Amundi increased its holdings in TKO Group by 338.7% in the first quarter. Amundi now owns 1,360 shares of the company's stock valued at $205,000 after buying an additional 1,050 shares during the last quarter. AQR Capital Management LLC increased its holdings in TKO Group by 10.7% in the first quarter. AQR Capital Management LLC now owns 7,222 shares of the company's stock valued at $1,083,000 after buying an additional 696 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in TKO Group by 4,722.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,777 shares of the company's stock valued at $1,341,000 after buying an additional 8,595 shares during the last quarter. United Services Automobile Association bought a new stake in TKO Group in the first quarter valued at about $218,000. Finally, Geneos Wealth Management Inc. increased its holdings in TKO Group by 127.7% in the first quarter. Geneos Wealth Management Inc. now owns 510 shares of the company's stock valued at $78,000 after buying an additional 286 shares during the last quarter. 89.79% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

TKO has been the subject of several research analyst reports. Citigroup lowered TKO Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Wolfe Research restated a "peer perform" rating on shares of TKO Group in a research note on Thursday, March 5th. Pivotal Research lifted their target price on TKO Group from $235.00 to $250.00 and gave the company a "buy" rating in a research note on Thursday, February 26th. Wall Street Zen upgraded TKO Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Finally, Citizens Jmp began coverage on TKO Group in a research note on Monday, March 30th. They issued a "mkt outperform" rating and a $240.00 target price for the company. Eleven research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $233.73.

TKO Group Stock Performance

Shares of NYSE TKO opened at $203.42 on Friday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.57. The stock has a 50 day simple moving average of $193.73 and a 200-day simple moving average of $200.73. The company has a market cap of $39.49 billion, a PE ratio of 75.90 and a beta of 0.59. TKO Group Holdings, Inc. has a 12-month low of $152.29 and a 12-month high of $226.94.

TKO Group (NYSE:TKO - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The company reported $1.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.11 by $0.01. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.59 billion. TKO Group had a return on equity of 2.49% and a net margin of 4.47%.The business's revenue was up 25.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.69 earnings per share. On average, equities research analysts forecast that TKO Group Holdings, Inc. will post 4.96 EPS for the current year.

TKO Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th will be given a dividend of $0.79 per share. This is a boost from TKO Group's previous quarterly dividend of $0.78. This represents a $3.16 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Monday, June 15th. TKO Group's payout ratio is presently 116.42%.

Insider Transactions at TKO Group

In other TKO Group news, Director Nick Khan sold 9,518 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $185.99, for a total value of $1,770,252.82. Following the completion of the sale, the director directly owned 91,100 shares in the company, valued at $16,943,689. This represents a 9.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mark S. Shapiro bought 10,807 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was purchased at an average price of $185.05 per share, with a total value of $1,999,835.35. Following the completion of the transaction, the insider directly owned 129,207 shares of the company's stock, valued at $23,909,755.35. This trade represents a 9.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have bought 24,308 shares of company stock valued at $4,499,679. 64.30% of the stock is currently owned by company insiders.

TKO Group 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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