Independent Franchise Partners LLP Has $485.67 Million Position in TKO Group Holdings, Inc. $TKO

Key Points

• Independent Franchise Partners LLP has reduced its stake in TKO Group Holdings, Inc. by 6.8% during Q1, now holding approximately $485.67 million worth of shares, representing 3.5% of its portfolio.
• Recent earnings revealed that TKO Group missed analysts' expectations with a reported earnings per share of $1.17, falling short of the $1.23 forecast, despite a revenue increase of 53.7% year-over-year.
• The company recently announced a quarterly dividend of $0.38 per share, translating to an annualized dividend yield of 0.8% and a payout ratio of 62.81%.

Independent Franchise Partners LLP cut its holdings in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 6.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 3,178,282 shares of the company's stock after selling 230,858 shares during the quarter. TKO Group comprises 3.5% of Independent Franchise Partners LLP's portfolio, making the stock its 16th biggest holding. Independent Franchise Partners LLP owned 1.86% of TKO Group worth $485,673,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in TKO. Vanguard Group Inc. increased 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 last quarter. Invesco Ltd. boosted its stake in TKO Group by 569.7% in the 1st quarter. Invesco Ltd. now owns 1,423,052 shares of the company's stock valued at $217,457,000 after purchasing an additional 1,210,563 shares during the period. Price T Rowe Associates Inc. MD boosted its stake 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 valued at $228,675,000 after purchasing an additional 1,059,636 shares during the period. Ameriprise Financial Inc. boosted 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 valued at $238,574,000 after purchasing an additional 611,178 shares during the period. Finally, Sequoia Financial Advisors LLC bought a new stake in TKO Group in the 1st quarter valued at $71,834,000. 89.79% of the stock is owned by institutional investors and hedge funds.

TKO Group Stock Performance

NYSE:TKO opened at $185.6470 on Friday. The stock has a fifty day moving average price of $174.08 and a 200-day moving average price of $162.76. The company has a market cap of $36.81 billion, a price-to-earnings ratio of 76.71 and a beta of 0.72. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.30 and a current ratio of 1.30. TKO Group Holdings, Inc. has a fifty-two week low of $113.16 and a fifty-two week high of $194.76.

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 company had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.23 billion. TKO Group had a net margin of 5.40% and a return on equity of 2.82%. The business's revenue was up 53.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.72 earnings per share. As a group, equities analysts anticipate that TKO Group Holdings, Inc. will post 3.88 EPS for the current fiscal year.

TKO Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 13th were given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, June 13th. TKO Group's dividend payout ratio is presently 62.81%.

Insider Activity

In other TKO Group news, major shareholder Lake West Voteco L.L.C Silver acquired 1,579,080 shares of the company's stock in a transaction that occurred on Tuesday, June 3rd. The stock was acquired at an average cost of $158.32 per share, for a total transaction of $249,999,945.60. Following the transaction, the insider directly owned 4,158,517 shares in the company, valued at $658,376,411.44. This represents a 61.22% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Peter C. B. Bynoe acquired 980 shares of the company's stock in a transaction that occurred on Thursday, June 5th. The shares were acquired at an average price of $169.59 per share, with a total value of $166,198.20. Following the completion of the transaction, the director owned 2,747 shares in the company, valued at $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. In the last three months, insiders sold 73,725 shares of company stock worth $12,501,561. 61.30% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

TKO has been the subject of several recent research reports. Susquehanna initiated coverage on TKO Group in a research note on Monday, April 28th. They issued a "positive" rating and a $180.00 price target for the company. Citigroup boosted their price target on TKO Group from $200.00 to $225.00 and gave the company a "buy" rating in a research note on Friday, August 15th. The Goldman Sachs Group boosted their price target on TKO Group from $170.00 to $188.00 and gave the company a "buy" rating in a research note on Monday, May 12th. Bank of America boosted their price target on TKO Group from $200.00 to $210.00 and gave the company a "buy" rating in a research note on Tuesday, August 12th. Finally, Morgan Stanley restated an "outperform" rating on shares of TKO Group in a research note on Sunday, August 10th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $189.69.

About TKO Group

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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