Hsbc Holdings PLC Buys 29,076 Shares of TKO Group Holdings, Inc. $TKO

Key Points

• HSBC Holdings PLC boosted its TKO Group stake by 38.1% in the fourth quarter, buying 29,076 additional shares and bringing its total position to 105,333 shares worth about $22.1 million.
• TKO reported better-than-expected quarterly results, with EPS of $1.12 topping estimates and revenue of $1.60 billion slightly beating forecasts; revenue also jumped 25.9% from a year earlier.
• The company raised its quarterly dividend to $0.79 per share, while analysts remain broadly constructive with a consensus rating of “Moderate Buy” and a price target of $233.73.

Hsbc Holdings PLC raised its stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 38.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 105,333 shares of the company's stock after buying an additional 29,076 shares during the quarter. Hsbc Holdings PLC owned 0.05% of TKO Group worth $22,115,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. M & L Capital Management Ltd acquired a new stake in TKO Group during the 4th quarter valued at $2,978,000. CIBC Bancorp USA Inc. acquired a new position in shares of TKO Group in the third quarter valued at $10,105,000. Swiss Life Asset Management Ltd increased its holdings in shares of TKO Group by 711.4% in the fourth quarter. Swiss Life Asset Management Ltd now owns 25,810 shares of the company's stock valued at $5,394,000 after purchasing an additional 22,629 shares during the last quarter. Perpetual Ltd bought a new position in shares of TKO Group in the fourth quarter valued at about $26,046,000. Finally, Ninety One SA Pty Ltd raised its position in shares of TKO Group by 86.2% in the fourth quarter. Ninety One SA Pty Ltd now owns 133,187 shares of the company's stock valued at $27,836,000 after purchasing an additional 61,657 shares during the period. Institutional investors own 89.79% of the company's stock.

TKO Group Stock Up 0.6%

Shares of TKO opened at $193.49 on Wednesday. TKO Group Holdings, Inc. has a 12 month low of $152.29 and a 12 month high of $226.94. The firm's 50 day moving average is $196.48 and its 200-day moving average is $200.96. The stock has a market capitalization of $37.56 billion, a PE ratio of 72.20 and a beta of 0.60. 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 issued its quarterly earnings results on Wednesday, May 6th. The company reported $1.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.11 by $0.01. The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.59 billion. TKO Group had a return on equity of 2.49% and a net margin of 4.47%.The firm's quarterly revenue was up 25.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.69 earnings per share. Equities research analysts forecast that TKO Group Holdings, Inc. will post 4.94 EPS for the current year.

TKO Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a $0.79 dividend. The ex-dividend date was Monday, June 15th. This is an increase from TKO Group's previous quarterly dividend of $0.78. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.6%. TKO Group's dividend payout ratio (DPR) is 117.91%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on TKO. Citigroup downgraded shares of TKO Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. BTIG Research restated a "buy" rating and set a $237.00 price objective on shares of TKO Group in a research report on Thursday, May 7th. Weiss Ratings upgraded TKO Group from a "hold (c-)" rating to a "hold (c+)" rating in a report on Thursday, May 7th. Zacks Research raised TKO Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Finally, Citizens Jmp assumed coverage on TKO Group in a research note on Monday, March 30th. They set a "mkt outperform" rating and a $240.00 target price on the stock. Eleven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $233.73.

Insider Buying and Selling

In related news, CFO Andrew M. Schleimer purchased 2,696 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The stock was acquired at an average price of $185.44 per share, with a total value of $499,946.24. Following the completion of the purchase, the chief financial officer directly owned 30,240 shares in the company, valued at $5,607,705.60. This trade represents a 9.79% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ariel Emanuel acquired 10,805 shares of TKO Group stock in a transaction on Wednesday, May 13th. The shares were purchased at an average price of $185.09 per share, for a total transaction of $1,999,897.45. Following the completion of the purchase, the chief executive officer directly owned 154,655 shares of the company's stock, valued at approximately $28,625,093.95. This represents a 7.51% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 24,308 shares of company stock worth $4,499,679 over the last three months. Company insiders own 64.30% of the company's stock.

TKO Group Company Profile

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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