Ninety One North America Inc. Makes New $13.01 Million Investment in TKO Group Holdings, Inc. $TKO

Key Points

• Ninety One North America established a new Q4 position in TKO by buying 62,231 shares worth about $13.01 million, and institutional investors now own roughly 89.8% of the stock.
• Heavy insider selling has occurred recently — insiders sold 84,726 shares totaling $17.26 million in the last three months (including CFO Shane Kapral and Seth D. Krauss), leaving insider ownership at 61.3%.
• Analysts have a consensus "Moderate Buy" rating with an average target of $232.25; TKO missed quarterly EPS ($-0.08 vs. $0.12) while revenue rose 11.9%, and it pays a $0.78 quarterly dividend (1.7% yield) with a ~138.7% payout ratio.

Ninety One North America Inc. bought a new position in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm bought 62,231 shares of the company's stock, valued at approximately $13,006,000.

Other large investors have also recently added to or reduced their stakes in the company. Cromwell Holdings LLC increased its position in TKO Group by 1,360.0% in the third quarter. Cromwell Holdings LLC now owns 146 shares of the company's stock worth $29,000 after buying an additional 136 shares during the period. CYBER HORNET ETFs LLC acquired a new stake in TKO Group in the second quarter worth $34,000. Aventura Private Wealth LLC acquired a new stake in TKO Group in the fourth quarter worth $35,000. Atlantic Union Bankshares Corp increased its position in TKO Group by 1,680.0% in the third quarter. Atlantic Union Bankshares Corp now owns 178 shares of the company's stock worth $36,000 after buying an additional 168 shares during the period. Finally, MUFG Securities EMEA plc acquired a new stake in TKO Group in the second quarter worth $36,000. 89.79% of the stock is owned by institutional investors and hedge funds.

Insider Activity at TKO Group

In other news, CFO Shane Kapral sold 1,238 shares of the firm's stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $201.98, for a total transaction of $250,051.24. Following the transaction, the chief financial officer directly owned 4,048 shares of the company's stock, valued at approximately $817,615.04. This trade represents a 23.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Seth D. Krauss sold 14,016 shares of the firm's stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $201.22, for a total value of $2,820,299.52. Following the transaction, the insider directly owned 2,271 shares in the company, valued at $456,970.62. This trade represents a 86.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 84,726 shares of company stock valued at $17,262,744. 61.30% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

TKO has been the topic of several analyst reports. Citizens Jmp initiated coverage on TKO Group in a research report on Monday, March 30th. They issued a "mkt outperform" rating and a $240.00 target price on the stock. JPMorgan Chase & Co. increased their target price on TKO Group from $220.00 to $225.00 and gave the stock an "overweight" rating in a research report on Wednesday, January 21st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of TKO Group in a research report on Monday, December 29th. TD Cowen increased their target price on TKO Group from $245.00 to $250.00 and gave the stock a "buy" rating in a research report on Wednesday, March 11th. Finally, Zacks Research raised TKO Group from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Twelve investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, TKO Group currently has an average rating of "Moderate Buy" and a consensus target price of $232.25.

TKO Group Price Performance

Shares of TKO opened at $186.21 on Friday. The firm has a market capitalization of $36.15 billion, a price-to-earnings ratio of 82.76 and a beta of 0.69. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.26 and a current ratio of 1.26. TKO Group Holdings, Inc. has a one year low of $141.44 and a one year high of $226.94. The stock's fifty day moving average is $202.67 and its 200-day moving average is $199.22.

TKO Group (NYSE:TKO - Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The company reported ($0.08) EPS for the quarter, missing analysts' consensus estimates of $0.12 by ($0.20). The business had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.02 billion. TKO Group had a net margin of 4.13% and a return on equity of 2.07%. TKO Group's revenue for the quarter was up 11.9% on a year-over-year basis. During the same period last year, the business posted $0.28 earnings per share. Equities analysts anticipate that TKO Group Holdings, Inc. will post 3.88 EPS for the current year.

TKO Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were issued a dividend of $0.78 per share. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend was Monday, March 16th. TKO Group's dividend payout ratio (DPR) is 138.67%.

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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