Norges Bank Purchases Shares of 720,584 TKO Group Holdings, Inc. $TKO

Key Points

• Norges Bank bought a new stake in TKO Group in Q4, acquiring 720,584 shares valued at about $150.6 million and representing roughly 0.37% of the company.
• TKO Group reported better-than-expected quarterly results, with EPS of $1.12 versus estimates of $1.11 and revenue of $1.60 billion, up 25.9% year over year.
• Analysts remain broadly positive on the stock: TKO has a Moderate Buy consensus rating and an average target price of $233.73, even though the shares were down 2.8% in Thursday trading.

Norges Bank purchased a new stake in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) in the fourth quarter, according to the company in its most recent filing with the SEC. The fund purchased 720,584 shares of the company's stock, valued at approximately $150,602,000. Norges Bank owned about 0.37% of TKO Group as of its most recent filing with the SEC.

Other hedge funds have also added to or reduced their stakes in the company. American Century Companies Inc. boosted its stake in TKO Group by 35.9% during the 3rd quarter. American Century Companies Inc. now owns 726,149 shares of the company's stock valued at $146,653,000 after purchasing an additional 191,743 shares during the last quarter. CIBC Bancorp USA Inc. acquired a new position in TKO Group during the 3rd quarter valued at about $10,105,000. M & L Capital Management Ltd purchased a new position in shares of TKO Group in the 4th quarter worth approximately $2,978,000. Optimize Financial Inc purchased a new position in shares of TKO Group in the 3rd quarter worth approximately $1,543,000. Finally, Perpetual Ltd purchased a new position in shares of TKO Group in the 4th quarter worth approximately $26,046,000. Institutional investors and hedge funds own 89.79% of the company's stock.

TKO Group Trading Down 2.8%

NYSE:TKO opened at $198.90 on Thursday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $38.61 billion, a PE ratio of 74.22 and a beta of 0.59. The firm's 50 day moving average is $192.32 and its 200 day moving average is $199.76. TKO Group Holdings, Inc. has a 12 month low of $152.29 and a 12 month high of $226.94.

TKO Group (NYSE:TKO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $1.12 EPS for the quarter, topping analysts' consensus estimates of $1.11 by $0.01. The company had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.59 billion. TKO Group had a net margin of 4.47% and a return on equity of 2.49%. TKO Group's revenue was up 25.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.69 EPS. Sell-side analysts expect that TKO Group Holdings, Inc. will post 4.96 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Shane Kapral sold 254 shares of TKO Group stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $199.15, for a total value of $50,584.10. Following the sale, the chief financial officer owned 99 shares of the company's stock, valued at approximately $19,715.85. The trade was a 71.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mark S. Shapiro bought 10,807 shares of the stock in a transaction on Wednesday, May 13th. The shares were acquired at an average cost of $185.05 per share, for a total transaction of $1,999,835.35. Following the acquisition, the insider directly owned 129,207 shares in the company, valued at approximately $23,909,755.35. This trade represents a 9.13% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have purchased 24,308 shares of company stock worth $4,499,679 and have sold 19,290 shares worth $3,711,017. Company insiders own 64.30% of the company's stock.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on TKO. TD Cowen boosted their target price on TKO Group from $245.00 to $250.00 and gave the stock a "buy" rating in a research note on Wednesday, March 11th. Wall Street Zen upgraded TKO Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Citizens Jmp began coverage on TKO Group in a research note on Monday, March 30th. They issued a "mkt outperform" rating and a $240.00 target price on the stock. UBS Group boosted their target price on TKO Group from $235.00 to $238.00 and gave the stock a "buy" rating in a research note on Thursday, February 26th. Finally, Citigroup downgraded TKO Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 13th. Eleven investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, TKO Group currently has a consensus rating of "Moderate Buy" and a consensus target price of $233.73.

TKO Group 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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