Congress Asset Management Co. Invests $82.06 Million in TKO Group Holdings, Inc. $TKO

Key Points

• Congress Asset Management Co. made a significant investment of approximately $82.06 million in TKO Group Holdings, Inc., acquiring about 450,979 shares in the second quarter.
• TKO Group has announced a dividend of $0.76 per share, marking an increase from the previous $0.38 quarterly dividend, with a payout ratio of 125.62%.
• Additionally, TKO Group initiated a $1 billion stock buyback plan, indicating the board's belief that the company's shares may be undervalued.

Congress Asset Management Co. acquired a new position in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 450,979 shares of the company's stock, valued at approximately $82,056,000. Congress Asset Management Co. owned about 0.23% of TKO Group as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in TKO. Toronto Dominion Bank bought a new stake in shares of TKO Group in the 4th quarter worth approximately $1,258,000. Jefferies Financial Group Inc. bought a new stake in shares of TKO Group in the 4th quarter worth approximately $500,000. Wealth Enhancement Advisory Services LLC raised its holdings in TKO Group by 42.3% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 2,888 shares of the company's stock valued at $410,000 after buying an additional 858 shares during the last quarter. Wellington Management Group LLP raised its holdings in TKO Group by 5.6% during the 4th quarter. Wellington Management Group LLP now owns 22,948 shares of the company's stock valued at $3,261,000 after buying an additional 1,207 shares during the last quarter. Finally, MassMutual Private Wealth & Trust FSB raised its holdings in TKO Group by 229.7% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 244 shares of the company's stock valued at $37,000 after buying an additional 170 shares during the last quarter. 89.79% of the stock is currently owned by institutional investors.

TKO Group Stock Up 0.1%

NYSE:TKO opened at $195.91 on Friday. The firm's 50-day moving average price is $184.06 and its 200-day moving average price is $168.40. The company has a market capitalization of $38.85 billion, a PE ratio of 80.95 and a beta of 0.79. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.30 and a quick ratio of 1.30. TKO Group Holdings, Inc. has a 1-year low of $114.01 and a 1-year high of $212.49.

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

TKO Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a dividend of $0.76 per share. The ex-dividend date is Monday, September 15th. This represents a $3.04 annualized dividend and a yield of 1.6%. This is an increase from TKO Group's previous quarterly dividend of $0.38. TKO Group's dividend payout ratio (DPR) is currently 125.62%.

TKO Group declared that its board has initiated a stock buyback plan on Monday, September 15th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 2.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts recently commented on TKO shares. Roth Capital upped their price target on shares of TKO Group from $208.00 to $210.00 and gave the company a "buy" rating in a report on Tuesday, August 12th. Zacks Research upgraded shares of TKO Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 2nd. Seaport Res Ptn lowered shares of TKO Group from a "strong-buy" rating to a "hold" rating in a report on Monday, September 8th. Baird R W upgraded shares of TKO Group to a "strong-buy" rating in a report on Friday, September 5th. Finally, UBS Group upped their price target on shares of TKO Group from $200.00 to $235.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $199.71.

Insider Activity

In other TKO Group news, Director Nick Khan sold 45,168 shares of the company's stock in a transaction dated Monday, July 21st. The shares were 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 in the company, valued at approximately $26,732,305.08. This represents a 22.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Peter C. B. Bynoe bought 740 shares of the stock in a transaction on Tuesday, September 16th. The shares were bought at an average price of $203.00 per share, for a total transaction of $150,220.00. Following the purchase, the director directly owned 5,187 shares in the company, valued at approximately $1,052,961. This trade represents a 16.64% increase in their position. The disclosure for this purchase can be found here. Insiders have sold a total of 73,725 shares of company stock worth $12,767,807 in the last 90 days. Company insiders own 61.30% of the company's stock.

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.

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