TKO Group Holdings, Inc. $TKO Shares Sold by Gates Capital Management Inc.

Key Points

• Gates Capital Management Inc. reduced its position in TKO Group Holdings by 14.7%, selling 102,993 shares and owning 595,271 shares after the sale, which represents 1.8% of their portfolio.
• TKO Group's recent earnings report showed a net margin of 5.40% and a revenue increase of 53.7% year-over-year, though it missed earnings per share estimates by $0.06.
• Analyst ratings for TKO Group are generally positive, with thirteen analysts recommending a buy, reflecting an average price target of $189.69.

Gates Capital Management Inc. lessened its stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 14.7% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 595,271 shares of the company's stock after selling 102,993 shares during the period. TKO Group comprises about 1.8% of Gates Capital Management Inc.'s holdings, making the stock its 17th largest holding. Gates Capital Management Inc. owned approximately 0.35% of TKO Group worth $90,963,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Vanguard Group Inc. grew its holdings in shares of TKO Group by 19.4% during the 1st quarter. Vanguard Group Inc. now owns 7,976,904 shares of the company's stock worth $1,218,951,000 after acquiring an additional 1,295,817 shares during the period. Invesco Ltd. raised its holdings in TKO Group by 569.7% in the 1st quarter. Invesco Ltd. now owns 1,423,052 shares of the company's stock worth $217,457,000 after purchasing an additional 1,210,563 shares during the period. Price T Rowe Associates Inc. MD raised its holdings in TKO Group by 242.6% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 1,496,462 shares of the company's stock worth $228,675,000 after purchasing an additional 1,059,636 shares during the period. Ameriprise Financial Inc. increased its stake in TKO Group by 57.3% in the 4th quarter. Ameriprise Financial Inc. now owns 1,678,258 shares of the company's stock worth $238,574,000 after buying an additional 611,178 shares in the last quarter. Finally, Sequoia Financial Advisors LLC purchased a new stake in TKO Group in the 1st quarter worth $71,834,000. Institutional investors own 89.79% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on TKO shares. 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 report on Thursday, August 21st. UBS Group upped their price target on TKO Group from $195.00 to $200.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Bank of America upped their price target on TKO Group from $200.00 to $210.00 and gave the stock a "buy" rating in a research report on Tuesday, August 12th. Roth Capital upped their price target on TKO Group from $208.00 to $210.00 and gave the stock a "buy" rating in a research report on Tuesday, August 12th. Finally, The Goldman Sachs Group upped their target price on TKO Group from $170.00 to $188.00 and gave the company a "buy" rating in a research report on Monday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $189.69.

TKO Group Stock Performance

NYSE:TKO traded up $1.19 during mid-day trading on Wednesday, hitting $186.54. The company's stock had a trading volume of 685,562 shares, compared to its average volume of 1,030,670. TKO Group Holdings, Inc. has a 1 year low of $113.16 and a 1 year high of $194.76. 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 stock has a market cap of $36.99 billion, a price-to-earnings ratio of 69.18 and a beta of 0.79. The business's fifty day moving average is $175.98 and its two-hundred day moving average is $163.49.

TKO Group (NYSE:TKO - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $1.17 EPS for the quarter, missing analysts' consensus estimates of $1.23 by ($0.06). The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.23 billion. TKO Group had a net margin of 5.40% and a return on equity of 2.82%. TKO Group's revenue was up 53.7% on a year-over-year basis. During the same quarter last year, the business earned $0.72 earnings per share. Analysts anticipate that TKO Group Holdings, Inc. will post 3.88 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Nick Khan sold 9,519 shares of the firm's stock in a transaction that occurred on Tuesday, July 22nd. The shares were sold at an average price of $167.36, for a total transaction of $1,593,099.84. Following the completion of the sale, the director owned 146,975 shares in the company, valued at $24,597,736. This trade represents a 6.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Peter C. B. Bynoe purchased 980 shares of the business's stock in a transaction dated Thursday, June 5th. The shares were purchased at an average price of $169.59 per share, with a total value of $166,198.20. Following the acquisition, the director directly owned 2,747 shares in the company, valued at approximately $465,863.73. The trade was a 55.46% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold a total of 64,206 shares of company stock valued at $10,993,180 in the last 90 days. Insiders own 53.80% of the company's stock.

TKO Group 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.