Ninety One UK Ltd Acquires 611,233 Shares of TKO Group Holdings, Inc. $TKO

Key Points

• Ninety One UK Ltd increased its stake in TKO Group Holdings by 14.4%, acquiring an additional 611,233 shares, now holding a total of 4,850,006 shares.
• TKO Group reported a 53.7% increase in revenue year-over-year for the most recent quarter, despite EPS falling short of analysts' expectations.
• The company declared a quarterly dividend of $0.76 per share, which is a notable increase from its previous dividend of $0.38.

Ninety One UK Ltd lifted its holdings in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 14.4% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,850,006 shares of the company's stock after purchasing an additional 611,233 shares during the period. TKO Group accounts for about 2.1% of Ninety One UK Ltd's portfolio, making the stock its 12th biggest position. Ninety One UK Ltd owned 2.45% of TKO Group worth $882,459,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently made changes to their positions in TKO. Vanguard Group Inc. boosted its position 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 valued at $1,218,951,000 after purchasing an additional 1,295,817 shares in the last quarter. Invesco Ltd. boosted its position in shares of TKO Group by 569.7% during 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 in the last quarter. Price T Rowe Associates Inc. MD boosted its position in shares of TKO Group by 242.6% during 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 in the last quarter. Sequoia Financial Advisors LLC bought a new stake in shares of TKO Group during the 1st quarter valued at about $71,834,000. Finally, Congress Asset Management Co. bought a new stake in shares of TKO Group during the 2nd quarter valued at about $82,056,000. Institutional investors own 89.79% of the company's stock.

TKO Group Stock Performance

Shares of TKO Group stock opened at $201.91 on Wednesday. The company has a market cap of $40.04 billion, a PE ratio of 83.43 and a beta of 0.79. TKO Group Holdings, Inc. has a 52 week low of $114.01 and a 52 week high of $212.49. The business has a 50 day moving average price of $186.06 and a 200-day moving average price of $169.81. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28.

TKO Group (NYSE:TKO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.23 by ($0.06). The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.23 billion. TKO Group had a return on equity of 2.82% and a net margin of 5.40%.The business's revenue for the quarter was up 53.7% compared to the same quarter last year. During the same period last year, the company earned $0.72 earnings per share. Equities analysts anticipate 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 declared a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 15th were given a dividend of $0.76 per share. The ex-dividend date of this dividend was Monday, September 15th. This is a positive change from TKO Group's previous quarterly dividend of $0.38. This represents a $3.04 dividend on an annualized basis and a dividend yield of 1.5%. TKO Group's dividend payout ratio (DPR) is 125.62%.

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

Analyst Ratings Changes

A number of research analysts recently weighed in on the company. Robert W. Baird upped their price target on TKO Group from $225.00 to $250.00 and gave the stock an "outperform" rating in a research note on Tuesday, September 16th. Guggenheim upped their price target on TKO Group from $200.00 to $205.00 and gave the stock a "buy" rating in a research note on Wednesday, August 13th. Citigroup upped their price target on TKO Group from $200.00 to $225.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. Morgan Stanley upped their price target on TKO Group from $165.00 to $205.00 and gave the stock an "equal weight" rating in a research note on Thursday, September 25th. Finally, Baird R W raised TKO Group to a "strong-buy" rating in a research note on Friday, September 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, TKO Group has a consensus rating of "Moderate Buy" and an average target price of $199.71.

Insider Buying and Selling

In other TKO Group news, Director Peter C. B. Bynoe purchased 740 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The stock was bought at an average cost of $203.00 per share, with a total value of $150,220.00. Following the completion of the transaction, the director owned 5,187 shares of the company's stock, valued at $1,052,961. The trade was a 16.64% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Nick Khan sold 9,519 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $186.43, for a total value of $1,774,627.17. Following the sale, the director directly owned 137,456 shares of the company's stock, valued at $25,625,922.08. The trade was a 6.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 73,725 shares of company stock valued at $12,767,807 over the last ninety days. 53.80% of the stock is currently owned by company insiders.

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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