Delta Global Management LP Buys New Stake in TKO Group Holdings, Inc. $TKO

Key Points

• Delta Global Management LP disclosed a new first-quarter stake in TKO Group Holdings, buying 12,202 shares valued at about $2.46 million.
• Insider buying was notable: CEO Ariel Emanuel and insider Mark S. Shapiro each bought roughly 10,800 shares on May 13, while insiders overall bought more than they sold over the last 90 days.
• TKO posted solid operating results and shareholder returns, with Q1 EPS of $1.12 beating estimates, revenue up 25.9% year over year, and a slightly higher quarterly dividend of $0.79 per share.

Delta Global Management LP bought a new stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 12,202 shares of the company's stock, valued at approximately $2,461,000.

Other large investors also recently added to or reduced their stakes in the company. Elyxium Wealth LLC purchased a new position in shares of TKO Group during the fourth quarter worth $27,000. Cornerstone Planning Group LLC raised its holdings in shares of TKO Group by 543.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 148 shares of the company's stock valued at $28,000 after buying an additional 125 shares during the period. Torren Management LLC purchased a new stake in shares of TKO Group in the 4th quarter valued at $32,000. Clearstead Advisors LLC raised its holdings in shares of TKO Group by 234.0% in the 4th quarter. Clearstead Advisors LLC now owns 177 shares of the company's stock valued at $37,000 after buying an additional 124 shares during the period. Finally, IFC & Insurance Marketing Inc. acquired a new position in TKO Group during the 4th quarter worth about $38,000. 89.79% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, insider Mark S. Shapiro bought 10,807 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average cost of $185.05 per share, for a total transaction of $1,999,835.35. Following the completion of the purchase, the insider owned 129,207 shares of the company's stock, valued at approximately $23,909,755.35. This represents a 9.13% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ariel Emanuel bought 10,805 shares of TKO Group stock in a transaction that occurred on Wednesday, May 13th. The stock was purchased at an average cost of $185.09 per share, for a total transaction of $1,999,897.45. Following the acquisition, the chief executive officer owned 154,655 shares of the company's stock, valued at $28,625,093.95. This represents a 7.51% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders acquired 24,308 shares of company stock valued at $4,499,679 and sold 28,696 shares valued at $5,511,785. 64.30% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of brokerages recently commented on TKO. Roth Capital set a $228.00 target price on TKO Group in a report on Monday, May 4th. Zacks Research raised shares of TKO Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Wall Street Zen raised shares of TKO Group from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Guggenheim lowered their price objective on shares of TKO Group from $232.00 to $230.00 and set a "buy" rating for the company in a research note on Wednesday, July 15th. Finally, Citizens Jmp began coverage on shares of TKO Group in a report on Monday, March 30th. They issued a "mkt outperform" rating and a $240.00 price objective for the company. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $233.87.

TKO Group Stock Up 0.7%

Shares of NYSE TKO opened at $180.73 on Friday. The stock has a market cap of $35.08 billion, a P/E ratio of 67.44 and a beta of 0.60. The business's fifty day simple moving average is $195.78 and its 200-day simple moving average is $198.36. TKO Group Holdings, Inc. has a 12-month low of $152.29 and a 12-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.

TKO Group (NYSE:TKO - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported $1.12 EPS for the quarter, topping the consensus estimate of $1.11 by $0.01. TKO Group had a return on equity of 2.49% and a net margin of 4.47%.The firm had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.59 billion. During the same period in the previous year, the firm posted $0.69 EPS. TKO Group's revenue for the quarter was up 25.9% on a year-over-year basis. As a group, equities analysts predict that TKO Group Holdings, Inc. will post 4.94 EPS for the current fiscal year.

TKO Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were paid a $0.79 dividend. This represents a $3.16 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Monday, June 15th. This is a boost from TKO Group's previous quarterly dividend of $0.78. TKO Group's dividend payout ratio (DPR) is 117.91%.

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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