Alps Advisors Inc. Makes New Investment in TKO Group Holdings, Inc. $TKO

Key Points

• Alps Advisors initiated a position in TKO Group, buying 61,281 shares worth approximately $11.0 million in the third quarter. Institutional investors collectively own about 89.8% of the company.
• TKO’s third-quarter EPS of $1.33 beat estimates of $1.20, and revenue grew 21.4% year over year; however, revenue of $1.36 billion was below the $1.38 billion consensus.
• Analysts maintain a generally positive view: the stock has a “Moderate Buy” consensus rating and an average price target of $229.29.

Alps Advisors Inc. purchased a new stake in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 61,281 shares of the company's stock, valued at approximately $11,013,000.

Other hedge funds and other institutional investors have also bought and sold shares of the company. CenterBook Partners LP lifted its position in shares of TKO Group by 235.8% in the third quarter. CenterBook Partners LP now owns 111,589 shares of the company's stock valued at $20,055,000 after acquiring an additional 78,359 shares in the last quarter. Heritage Family Offices LLP bought a new stake in shares of TKO Group during the third quarter valued at approximately $44,000. Argonautica Private Wealth Management Inc. raised its position in shares of TKO Group by 12.2% during the third quarter. Argonautica Private Wealth Management Inc. now owns 2,944 shares of the company's stock valued at $529,000 after buying an additional 320 shares during the last quarter. Inscription Capital LLC bought a new stake in shares of TKO Group during the third quarter valued at approximately $226,000. Finally, Commonwealth Equity Services LLC lifted its holdings in shares of TKO Group by 213.3% in the third quarter. Commonwealth Equity Services LLC now owns 23,688 shares of the company's stock worth $4,257,000 after buying an additional 16,126 shares in the last quarter. Hedge funds and other institutional investors own 89.79% of the company's stock.

TKO Group News Summary

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: TKO reported third-quarter adjusted earnings of $1.33 per share, above the $1.20 consensus estimate, while revenue rose 21.4% year over year. The company also increased its projections, supporting the growth outlook. TKO reports over $1.3 billion in Q3 revenue
• Positive Sentiment: Management is discussing ways to expand distribution beyond Paramount+, with HBO mentioned as a possible outlet for UFC content. Additional platforms could broaden audience reach and create new media revenue opportunities, though no deal was announced. TKO discusses expanding distribution
• Positive Sentiment: Susquehanna lowered its price target slightly, from $224 to $223, but retained a positive rating, signaling continued analyst confidence in potential upside. Susquehanna price-target update
• Neutral Sentiment: TKO says WWE and UFC events in the Middle East, including WWE’s Saudi Arabia event, remain planned despite the Iran war. The events could support revenue if they proceed, but regional uncertainty creates execution risk. TKO executive on WWE Crown Jewel in Saudi Arabia
• Negative Sentiment: Third-quarter revenue of $1.36 billion fell short of the $1.38 billion analyst estimate, and reports noted a dip in WWE revenue. These results temper the strong earnings-per-share and year-over-year growth figures. TKO Q3 results and WWE revenue
• Negative Sentiment: TKO priced a $1 billion offering of 6.5% senior secured notes due 2031. The financing provides capital but adds debt and interest costs. TKO announces senior secured notes offering

Insider Activity at TKO Group

In other news, insider Mark S. Shapiro sold 19,120 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total value of $3,716,736.80. Following the completion of the sale, the insider directly owned 147,071 shares in the company, valued at $28,589,131.69. This represents a 11.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Andrew M. Schleimer sold 9,942 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total transaction of $1,932,625.38. Following the completion of the sale, the chief financial officer directly owned 38,051 shares of the company's stock, valued at $7,396,733.89. This represents a 20.72% 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 90 days, insiders sold 97,325 shares of company stock worth $18,798,012. Company insiders own 64.30% of the company's stock.

Analyst Upgrades and Downgrades

TKO has been the topic of a number of research reports. The Goldman Sachs Group reduced their price objective on TKO Group from $220.00 to $215.00 and set a "buy" rating on the stock in a research note on Tuesday, October 27th. Guggenheim upped their price objective on TKO Group from $228.00 to $240.00 and gave the stock a "buy" rating in a report on Thursday. Citigroup reiterated a "market outperform" rating on shares of TKO Group in a research report on Tuesday, October 27th. Arete Research raised shares of TKO Group from a "neutral" rating to a "buy" rating and set a $208.00 target price for the company in a report on Tuesday, October 20th. Finally, Rothschild & Co Redburn boosted their price target on shares of TKO Group from $220.00 to $225.00 in a research report on Wednesday, August 5th. Fourteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, TKO Group presently has an average rating of "Moderate Buy" and an average target price of $229.29.

TKO Group Stock Performance

Shares of TKO Group stock opened at $190.20 on Friday. The company has a quick ratio of 1.28, a current ratio of 1.35 and a debt-to-equity ratio of 0.58. The stock's fifty day moving average is $182.63 and its two-hundred day moving average is $193.10. TKO Group Holdings, Inc. has a 52 week low of $170.14 and a 52 week high of $226.94. The company has a market capitalization of $36.00 billion, a PE ratio of 51.27 and a beta of 0.66.

TKO Group (NYSE:TKO - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The company reported $1.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.20 by $0.13. TKO Group had a return on equity of 3.35% and a net margin of 5.19%. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the business earned $0.47 earnings per share. TKO Group's quarterly revenue was up 21.4% on a year-over-year basis. As a group, analysts expect that TKO Group Holdings, Inc. will post 7.04 earnings per share for the current year.

TKO Group Announces Dividend

The business 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. The ex-dividend date was Tuesday, September 15th. This represents a $3.16 annualized dividend and a yield of 1.7%. TKO Group's dividend payout ratio (DPR) is currently 85.18%.

About TKO Group

TKO Group Holdings, Inc is a global sports and entertainment company whose principal properties are UFC, the mixed martial arts organization, and WWE, the professional wrestling and sports entertainment company. TKO was formed in 2023 when Endeavor combined UFC and WWE under a single publicly traded company.

The company generates business through live events and ticket sales, media and streaming rights, sponsorships, licensing, and consumer products. UFC and WWE produce programming and events for audiences worldwide, alongside related digital content and merchandise.

TKO serves markets around the world through its events, broadcast and streaming partnerships, and commercial activities.

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