O Keefe Stevens Advisory Inc. Acquires 6,353 Shares of TKO Group Holdings, Inc. $TKO

Key Points

• O Keefe Stevens Advisory Inc. increased its holdings in TKO Group by 324.0% during the second quarter, acquiring an additional 6,353 shares to reach a total of 8,314 shares.
• TKO Group recently authorized a $1.00 billion stock repurchase program, signaling that the board believes the company's shares are undervalued.
• The company increased its quarterly dividend from $0.38 to $0.76, representing an annualized yield of 1.5% and a payout ratio of 125.62%.

O Keefe Stevens Advisory Inc. lifted its holdings in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 324.0% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 8,314 shares of the company's stock after buying an additional 6,353 shares during the period. TKO Group comprises 0.4% of O Keefe Stevens Advisory Inc.'s holdings, making the stock its 27th largest holding. O Keefe Stevens Advisory Inc.'s holdings in TKO Group were worth $1,513,000 as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Sentry Investment Management LLC bought a new stake in shares of TKO Group in the 1st quarter worth about $25,000. Hemington Wealth Management increased its holdings in shares of TKO Group by 425.0% in the 1st quarter. Hemington Wealth Management now owns 168 shares of the company's stock worth $25,000 after buying an additional 136 shares during the last quarter. N.E.W. Advisory Services LLC bought a new stake in shares of TKO Group in the 1st quarter worth about $26,000. Bartlett & CO. Wealth Management LLC bought a new stake in shares of TKO Group in the 1st quarter worth about $27,000. Finally, Farther Finance Advisors LLC increased its holdings in shares of TKO Group by 129.8% in the 1st quarter. Farther Finance Advisors LLC now owns 216 shares of the company's stock worth $33,000 after buying an additional 122 shares during the last quarter. 89.79% of the stock is currently owned by institutional investors.

Insider Activity

In other news, Director Nick Khan sold 9,519 shares of the company's 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 completion of the sale, the director owned 137,456 shares of the company's stock, valued at approximately $25,625,922.08. This represents a 6.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Peter C. B. Bynoe purchased 740 shares of the stock in a transaction dated Tuesday, September 16th. The stock was acquired at an average cost of $203.00 per share, with a total value of $150,220.00. Following the transaction, the director directly owned 5,187 shares in the company, valued at approximately $1,052,961. This trade represents a 16.64% increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders sold 64,206 shares of company stock valued at $11,083,325. 61.30% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on TKO. Guggenheim upped their price target on shares of TKO Group from $205.00 to $225.00 and gave the company a "buy" rating in a report on Friday. Weiss Ratings reiterated a "hold (c)" rating on shares of TKO Group in a report on Saturday, September 27th. Citigroup upped their price target on shares of TKO Group from $200.00 to $225.00 and gave the company a "buy" rating in a report on Friday, August 15th. JPMorgan Chase & Co. upped their price target on shares of TKO Group from $182.00 to $212.00 and gave the company an "overweight" rating in a report on Thursday, August 21st. Finally, Roth Capital upped their price target on shares of TKO Group from $208.00 to $210.00 and gave the company a "buy" rating in a report on Tuesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $201.14.

TKO Group Price Performance

TKO Group stock opened at $197.32 on Friday. The stock has a market cap of $39.13 billion, a price-to-earnings ratio of 81.54 and a beta of 0.76. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.30 and a quick ratio of 1.30. TKO Group Holdings, Inc. has a 1 year low of $114.01 and a 1 year high of $212.49. The firm has a 50-day moving average of $187.82 and a two-hundred day moving average of $170.87.

TKO Group (NYSE:TKO - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $1.17 earnings per share (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 net margin of 5.40% and a return on equity of 2.82%. TKO Group's quarterly revenue was up 53.7% on a year-over-year basis. During the same period last year, the firm earned $0.72 earnings per share. On average, research analysts forecast that TKO Group Holdings, Inc. will post 3.88 earnings per share for the current year.

TKO Group announced that its Board of Directors has authorized a stock repurchase program on Monday, September 15th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to buy up to 2.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

TKO Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th were given a $0.76 dividend. This is a positive change from TKO Group's previous quarterly dividend of $0.38. The ex-dividend date of this dividend was Monday, September 15th. This represents a $3.04 annualized dividend and a yield of 1.5%. TKO Group's dividend payout ratio is presently 125.62%.

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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