Barings LLC Sells 7,420 Shares of TKO Group Holdings, Inc. $TKO

Key Points

• Barings LLC sharply reduced its stake in TKO Group, selling 7,420 shares in the fourth quarter and cutting its position by 72.2%. It now holds 2,851 shares valued at about $596,000.
• TKO reported stronger-than-expected quarterly results, with EPS of $1.12 and revenue of $1.60 billion, both slightly ahead of analyst estimates. Revenue rose 25.9% year over year.
• The company raised its quarterly dividend to $0.79 per share from $0.78, payable June 30, though the payout ratio is high at 116.42%. Insider buying also continued, with CEO Ariel Emanuel and CFO Andrew M. Schleimer purchasing shares in May.

Barings LLC cut its position in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 72.2% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,851 shares of the company's stock after selling 7,420 shares during the period. Barings LLC's holdings in TKO Group were worth $596,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. State Street Corp lifted its position in TKO Group by 20.3% during the third quarter. State Street Corp now owns 5,249,091 shares of the company's stock valued at $1,060,106,000 after purchasing an additional 887,401 shares during the last quarter. Ninety One UK Ltd raised its position in shares of TKO Group by 0.8% during the 4th quarter. Ninety One UK Ltd now owns 5,006,158 shares of the company's stock valued at $1,046,287,000 after buying an additional 42,156 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in shares of TKO Group by 54.9% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,185,769 shares of the company's stock valued at $665,826,000 after acquiring an additional 1,128,749 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of TKO Group by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 1,855,077 shares of the company's stock valued at $387,072,000 after acquiring an additional 49,486 shares during the last quarter. Finally, UBS Group AG grew its position in TKO Group by 31.7% in the third quarter. UBS Group AG now owns 1,274,142 shares of the company's stock worth $257,326,000 after acquiring an additional 307,000 shares in the last quarter. Hedge funds and other institutional investors own 89.79% of the company's stock.

TKO Group Price Performance

Shares of TKO stock opened at $213.89 on Friday. TKO Group Holdings, Inc. has a twelve month low of $152.29 and a twelve month high of $226.94. 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 fifty day simple moving average of $193.67 and a two-hundred day simple moving average of $200.71. The stock has a market capitalization of $41.52 billion, a price-to-earnings ratio of 79.81 and a beta of 0.59.

TKO Group (NYSE:TKO - Get Free Report) last issued its earnings results 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 company had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.59 billion. TKO Group had a net margin of 4.47% and a return on equity of 2.49%. The firm's quarterly revenue was up 25.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.69 EPS. On average, analysts predict that TKO Group Holdings, Inc. will post 4.96 EPS for the current fiscal year.

TKO Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be paid a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 1.5%. This is a boost from TKO Group's previous quarterly dividend of $0.78. The ex-dividend date is Monday, June 15th. TKO Group's payout ratio is presently 116.42%.

Insider Activity

In other news, CEO Ariel Emanuel purchased 10,805 shares of the firm's stock in a transaction on Wednesday, May 13th. The stock was acquired at an average cost of $185.09 per share, with a total value of $1,999,897.45. Following the completion of the transaction, the chief executive officer owned 154,655 shares in the company, valued at $28,625,093.95. This represents a 7.51% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CFO Andrew M. Schleimer acquired 2,696 shares of the business's stock in a transaction dated Wednesday, May 13th. The stock was purchased at an average cost of $185.44 per share, for a total transaction of $499,946.24. Following the transaction, the chief financial officer owned 30,240 shares in the company, valued at approximately $5,607,705.60. The trade was a 9.79% 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 three months, insiders have acquired 24,308 shares of company stock valued at $4,499,679. Company insiders own 64.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on the stock. Zacks Research upgraded shares of TKO Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Pivotal Research boosted their target price on TKO Group from $235.00 to $250.00 and gave the company a "buy" rating in a research report on Thursday, February 26th. Weiss Ratings raised TKO Group from a "hold (c-)" rating to a "hold (c+)" rating in a research note on Thursday, May 7th. Roth Mkm set a $228.00 price target on TKO Group in a report on Monday, May 4th. Finally, Wall Street Zen upgraded TKO Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Eleven analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $233.73.

About TKO Group

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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