Highland Capital Management LLC Acquires 9,977 Shares of TKO Group Holdings, Inc. $TKO

Key Points

• Highland Capital Management LLC increased its stake in TKO Group Holdings, Inc. by 35.8%, acquiring an additional 9,977 shares, bringing its total holdings to 37,877 shares valued at approximately $6.89 million.
• Multiple institutional investors significantly increased their positions in TKO Group during the second quarter, with 89.79% of the stock now owned by institutional investors.
• TKO Group has raised its quarterly dividend from $0.38 to <$strong>0.76, signaling positive financial health, alongside announcing a $1.00 billion stock buyback plan.

Highland Capital Management LLC lifted its stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 35.8% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 37,877 shares of the company's stock after acquiring an additional 9,977 shares during the period. Highland Capital Management LLC's holdings in TKO Group were worth $6,892,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in TKO. O Keefe Stevens Advisory Inc. lifted its holdings in TKO Group by 324.0% during the 2nd quarter. O Keefe Stevens Advisory Inc. now owns 8,314 shares of the company's stock worth $1,513,000 after purchasing an additional 6,353 shares in the last quarter. QRG Capital Management Inc. increased its position in shares of TKO Group by 88.1% during the second quarter. QRG Capital Management Inc. now owns 2,836 shares of the company's stock valued at $516,000 after buying an additional 1,328 shares during the period. Ameritas Advisory Services LLC purchased a new stake in shares of TKO Group in the second quarter worth about $61,000. Mirae Asset Global Investments Co. Ltd. boosted its position in shares of TKO Group by 5.7% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 8,217 shares of the company's stock valued at $1,495,000 after acquiring an additional 445 shares during the period. Finally, Ninety One UK Ltd grew its stake in TKO Group by 14.4% during the second quarter. Ninety One UK Ltd now owns 4,850,006 shares of the company's stock valued at $882,459,000 after acquiring an additional 611,233 shares in the last quarter. 89.79% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research firms have issued reports on TKO. Robert W. Baird increased their target price on shares of TKO Group from $225.00 to $250.00 and gave the stock an "outperform" rating in a research note on Tuesday, September 16th. Morgan Stanley increased their price objective on TKO Group from $165.00 to $205.00 and gave the stock an "equal weight" rating in a research report on Thursday, September 25th. Zacks Research upgraded TKO Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 2nd. Bank of America raised their price target on TKO Group from $200.00 to $210.00 and gave the company a "buy" rating in a report on Tuesday, August 12th. Finally, Guggenheim lifted their price target on TKO Group from $205.00 to $225.00 and gave the company a "buy" rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $201.14.

Insider Buying and Selling at TKO Group

In other TKO Group news, Director Peter C. B. Bynoe bought 740 shares of the firm's stock in a transaction that occurred 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 transaction, the director directly owned 5,187 shares in the company, valued at $1,052,961. This trade represents a 16.64% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 sale, the director owned 156,494 shares of the company's stock, valued at approximately $26,732,305.08. The trade was a 22.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 64,206 shares of company stock worth $11,083,325. 61.30% of the stock is owned by insiders.

TKO Group Price Performance

TKO opened at $197.32 on Friday. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.28. The stock has a market capitalization of $39.13 billion, a P/E ratio of 81.54 and a beta of 0.76. The stock has a 50-day moving average price of $187.82 and a 200-day moving average price of $170.87. TKO Group Holdings, Inc. has a 12-month low of $114.01 and a 12-month high of $212.49.

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

TKO Group Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th were paid a $0.76 dividend. This is a positive change from TKO Group's previous quarterly dividend of $0.38. The ex-dividend date of this dividend was Monday, September 15th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 1.5%. TKO Group's dividend payout ratio is currently 125.62%.

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

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.

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