Independent Franchise Partners LLP Cuts Position in TKO Group Holdings, Inc. $TKO

Key Points

• Independent Franchise Partners LLP cut its TKO Group stake by 13.7% in the fourth quarter, selling 77,284 shares and ending with 485,832 shares valued at about $101.5 million.
• TKO Group reported better-than-expected quarterly results, with EPS of $1.12 and revenue of $1.60 billion, while revenue grew 25.9% from a year earlier.
• The company also raised its quarterly dividend to $0.79 per share, and analysts remain broadly positive with an average rating of “Moderate Buy” and a $233.73 price target.

Independent Franchise Partners LLP trimmed its stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 13.7% in the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 485,832 shares of the company's stock after selling 77,284 shares during the period. TKO Group makes up about 0.6% of Independent Franchise Partners LLP's portfolio, making the stock its 26th biggest position. Independent Franchise Partners LLP owned about 0.25% of TKO Group worth $101,539,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. CreativeOne Wealth LLC lifted its stake in shares of TKO Group by 2.1% during the 4th quarter. CreativeOne Wealth LLC now owns 2,586 shares of the company's stock worth $541,000 after acquiring an additional 54 shares during the last quarter. Frank Rimerman Advisors LLC grew its stake in TKO Group by 3.2% during the 4th quarter. Frank Rimerman Advisors LLC now owns 1,783 shares of the company's stock worth $373,000 after buying an additional 56 shares during the last quarter. Stephens Inc. AR lifted its position in TKO Group by 2.7% during the 4th quarter. Stephens Inc. AR now owns 2,160 shares of the company's stock worth $451,000 after acquiring an additional 56 shares during the period. Sunbelt Securities Inc. lifted its position in TKO Group by 6.3% during the 3rd quarter. Sunbelt Securities Inc. now owns 950 shares of the company's stock worth $192,000 after acquiring an additional 56 shares during the period. Finally, Northwestern Mutual Wealth Management Co. lifted its position in TKO Group by 29.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 249 shares of the company's stock worth $52,000 after acquiring an additional 57 shares during the period. 89.79% of the stock is owned by institutional investors.

TKO Group Price Performance

Shares of TKO Group stock opened at $194.79 on Thursday. The business has a 50 day simple moving average of $193.55 and a two-hundred day simple moving average of $201.01. TKO Group Holdings, Inc. has a 12 month low of $152.29 and a 12 month high of $226.94. The stock has a market capitalization of $37.81 billion, a P/E ratio of 72.68 and a beta of 0.59. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 1.34.

TKO Group (NYSE:TKO - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $1.12 EPS for the quarter, beating analysts' consensus estimates of $1.11 by $0.01. The business had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.59 billion. TKO Group had a return on equity of 2.49% and a net margin of 4.47%.The business's revenue was up 25.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.69 earnings per share. As a group, analysts predict that TKO Group Holdings, Inc. will post 4.96 EPS for the current fiscal year.

TKO Group Increases Dividend

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

Wall Street Analyst Weigh In

TKO has been the subject of several analyst reports. BTIG Research reissued a "buy" rating and issued a $237.00 price objective on shares of TKO Group in a report on Thursday, May 7th. Sanford C. Bernstein reduced their price target on TKO Group from $250.00 to $240.00 and set an "outperform" rating for the company in a report on Monday, April 27th. Zacks Research raised TKO Group from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Roth Mkm set a $228.00 price target on TKO Group in a report on Monday, May 4th. Finally, Citigroup cut TKO Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. Eleven investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, TKO Group currently has an average rating of "Moderate Buy" and an average target price 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 dated Wednesday, May 13th. The stock was acquired at an average cost of $185.44 per share, for a total transaction of $499,946.24. Following the completion of the transaction, the chief financial officer directly owned 30,240 shares of the company's stock, valued at approximately $5,607,705.60. This trade represents a 9.79% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark S. Shapiro purchased 10,807 shares of the company's stock in a transaction dated Wednesday, May 13th. The stock was bought at an average price of $185.05 per share, with a total value of $1,999,835.35. Following the completion of the transaction, the insider directly 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 SEC filing for this purchase provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have acquired 24,308 shares of company stock valued at $4,499,679 and have sold 28,625 shares valued at $5,650,725. Corporate 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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