Cooper Investors PTY Ltd. Grows Stake in TKO Group Holdings, Inc. $TKO

Key Points

• Cooper Investors PTY Ltd. increased its holdings in TKO Group Holdings, Inc. by 10.8%, now owning a total of 143,876 shares worth approximately $26.2 million, making it the fund's 5th largest position.
• TKO Group recently authorized a $1 billion share repurchase plan aimed at reacquiring up to 2.5% of its shares, suggesting management believes the stock is undervalued.
• The company has also announced a quarterly dividend of $0.76 per share, doubling from the previous payout, and reflecting an annual yield of 1.5%.

Cooper Investors PTY Ltd. grew its holdings in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 10.8% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 143,876 shares of the company's stock after purchasing an additional 13,974 shares during the quarter. TKO Group makes up 4.8% of Cooper Investors PTY Ltd.'s investment portfolio, making the stock its 5th largest holding. Cooper Investors PTY Ltd. owned 0.07% of TKO Group worth $26,178,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of TKO Group during the 1st quarter valued at approximately $1,163,000. Friedenthal Financial bought a new stake in shares of TKO Group in the 1st quarter worth approximately $895,000. Sumitomo Mitsui Trust Group Inc. purchased a new position in TKO Group in the first quarter valued at approximately $464,000. Ninety One SA PTY Ltd grew its holdings in TKO Group by 3.4% during the first quarter. Ninety One SA PTY Ltd now owns 71,446 shares of the company's stock valued at $10,902,000 after purchasing an additional 2,330 shares during the period. Finally, Asset Management One Co. Ltd. bought a new position in TKO Group during the first quarter valued at $297,000. 89.79% of the stock is owned by hedge funds and other institutional investors.

TKO Group Price Performance

Shares of NYSE:TKO traded down $1.52 on Friday, hitting $201.28. The company's stock had a trading volume of 2,052,671 shares, compared to its average volume of 1,006,501. The company has a market capitalization of $39.91 billion, a PE ratio of 83.17 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. The company has a 50-day simple moving average of $181.83 and a 200 day simple moving average of $167.07. 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 earnings results on Wednesday, August 6th. The company reported $1.17 earnings per share (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 company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the previous year, the firm earned $0.72 earnings per share. The company's revenue for the quarter was up 53.7% compared to the same quarter last year. Sell-side analysts forecast that TKO Group Holdings, Inc. will post 3.88 EPS for the current fiscal year.

TKO Group Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be given a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a yield of 1.5%. The ex-dividend date is Monday, September 15th. This is a positive change from TKO Group's previous quarterly dividend of $0.38. TKO Group's dividend payout ratio is 125.62%.

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

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. JPMorgan Chase & Co. boosted their target price on TKO Group from $182.00 to $212.00 and gave the company an "overweight" rating in a research note on Thursday, August 21st. Robert W. Baird boosted their price objective on TKO Group from $225.00 to $250.00 and gave the company an "outperform" rating in a research note on Tuesday. Zacks Research raised shares of TKO Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 2nd. Citigroup lifted their target price on shares of TKO Group from $200.00 to $225.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Finally, Northcoast Research lowered shares of TKO Group from a "buy" rating to a "neutral" rating in a research report on Thursday, July 10th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $196.50.

Insider Activity at TKO Group

In related news, Director Nick Khan sold 45,168 shares of the company's stock in a transaction on 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 completion of the sale, the director directly owned 156,494 shares in the company, valued at $26,732,305.08. This represents a 22.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Peter C. B. Bynoe acquired 740 shares of the stock in a transaction dated Tuesday, September 16th. The shares were purchased at an average cost of $203.00 per share, with a total value of $150,220.00. Following the completion of the purchase, the director owned 5,187 shares of the company's stock, valued at approximately $1,052,961. The trade was a 16.64% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 73,725 shares of company stock worth $12,767,807. 61.30% of the stock is owned by corporate insiders.

TKO Group Company Profile

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.