Northwestern Mutual Wealth Management Co. Purchases 11,305 Shares of TKO Group Holdings, Inc. $TKO

Key Points

• Northwestern Mutual Wealth Management significantly increased its TKO Group stake in Q4, buying 11,305 additional shares and lifting its position by 5,888% to 11,497 shares worth about $2.44 million.
• Institutional ownership remains high, with several other funds also adding to TKO, including Massachusetts Financial Services, State Street, and UBS; overall, institutions hold 89.79% of the stock.
• TKO reported solid quarterly results, with EPS of $1.12 topping estimates and revenue rising 25.9% year over year to $1.60 billion, while analysts maintain a Moderate Buy consensus and average target price of $233.73.

Northwestern Mutual Wealth Management Co. lifted its position in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 5,888.0% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 11,497 shares of the company's stock after purchasing an additional 11,305 shares during the quarter. Northwestern Mutual Wealth Management Co.'s holdings in TKO Group were worth $2,438,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in TKO. Massachusetts Financial Services Co. MA grew its holdings in TKO Group by 54.9% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,185,769 shares of the company's stock worth $665,826,000 after acquiring an additional 1,128,749 shares during the last quarter. State Street Corp grew its holdings in TKO Group by 20.3% during the 3rd quarter. State Street Corp now owns 5,249,091 shares of the company's stock worth $1,060,106,000 after acquiring an additional 887,401 shares during the last quarter. Alliancebernstein L.P. grew its holdings in TKO Group by 551.8% during the 2nd quarter. Alliancebernstein L.P. now owns 494,964 shares of the company's stock worth $90,059,000 after acquiring an additional 419,021 shares during the last quarter. UBS Group AG grew its holdings in TKO Group by 31.7% during the 3rd quarter. UBS Group AG now owns 1,274,142 shares of the company's stock worth $257,326,000 after acquiring an additional 307,000 shares during the last quarter. Finally, Cat Rock Capital Management LP bought a new stake in TKO Group during the 3rd quarter worth about $45,764,000. Institutional investors own 89.79% of the company's stock.

Wall Street Analyst Weigh In

TKO has been the topic of a number of research analyst reports. UBS Group increased their price objective on shares of TKO Group from $235.00 to $238.00 and gave the stock a "buy" rating in a report on Thursday, February 26th. BTIG Research reissued a "buy" rating and set a $237.00 price objective on shares of TKO Group in a report on Thursday, May 7th. TD Cowen increased their price objective on shares of TKO Group from $245.00 to $250.00 and gave the stock a "buy" rating in a report on Wednesday, March 11th. Pivotal Research increased their price objective on shares of TKO Group from $235.00 to $250.00 and gave the stock a "buy" rating in a report on Thursday, February 26th. Finally, Wall Street Zen raised shares of TKO Group from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Eleven investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $233.73.

TKO Group Stock Performance

Shares of NYSE:TKO opened at $189.19 on Wednesday. The company has a market capitalization of $36.73 billion, a price-to-earnings ratio of 70.59 and a beta of 0.57. The firm's 50 day simple moving average is $191.83 and its 200 day simple moving average is $198.91. 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 Holdings, Inc. has a fifty-two week low of $152.29 and a fifty-two week high of $226.94.

TKO Group (NYSE:TKO - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $1.12 earnings per share for the quarter, beating analysts' consensus estimates of $1.11 by $0.01. The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate 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 for the quarter was up 25.9% on a year-over-year basis. During the same period last year, the company posted $0.69 EPS. As a group, sell-side analysts forecast that TKO Group Holdings, Inc. will post 5 earnings per share for the current year.

TKO Group Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were given a $0.78 dividend. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Monday, March 16th. TKO Group's dividend payout ratio (DPR) is currently 116.42%.

Insiders Place Their Bets

In related news, Director Nick Khan sold 9,518 shares of the stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $185.99, for a total value of $1,770,252.82. Following the sale, the director directly owned 91,100 shares in the company, valued at $16,943,689. This trade represents a 9.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Ariel Emanuel bought 10,805 shares of the company's stock in a transaction on Wednesday, May 13th. The shares were bought at an average price of $185.09 per share, for a total transaction of $1,999,897.45. Following the completion of the acquisition, the chief executive officer directly owned 154,655 shares in the company, valued at approximately $28,625,093.95. This trade represents a 7.51% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders acquired 24,308 shares of company stock worth $4,499,679 and sold 29,424 shares worth $5,944,433. Insiders own 61.30% of the company's stock.

About TKO Group

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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