Patton Fund Management Inc. Invests $255,000 in TKO Group Holdings, Inc. $TKO

Key Points

• Patton Fund Management Inc. invested $255,000 in TKO Group Holdings, acquiring 1,401 shares, as reported in their recent SEC filing.
• TKO Group announced a quarterly dividend increase from $0.38 to $0.76 per share, reflecting a 1.5% annualized yield and a payout ratio of 125.62%.
• The company is initiating a $1.00 billion share repurchase plan, indicating leadership's belief in undervalued stock prices.

Patton Fund Management Inc. acquired a new position in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 1,401 shares of the company's stock, valued at approximately $255,000.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Hemington Wealth Management grew its holdings in shares of TKO Group by 425.0% during the first quarter. Hemington Wealth Management now owns 168 shares of the company's stock worth $25,000 after purchasing an additional 136 shares in the last quarter. N.E.W. Advisory Services LLC purchased a new position in shares of TKO Group during the first quarter worth about $26,000. Sentry Investment Management LLC purchased a new position in shares of TKO Group during the first quarter worth about $25,000. Bartlett & CO. Wealth Management LLC purchased a new position in shares of TKO Group during the first quarter worth about $27,000. Finally, Farther Finance Advisors LLC boosted its stake in TKO Group by 129.8% in the first quarter. Farther Finance Advisors LLC now owns 216 shares of the company's stock worth $33,000 after buying an additional 122 shares in the last quarter. Hedge funds and other institutional investors own 89.79% of the company's stock.

TKO Group Stock Performance

NYSE:TKO opened at $198.89 on Friday. The firm has a market cap of $39.44 billion, a PE ratio of 82.19 and a beta of 0.79. TKO Group Holdings, Inc. has a fifty-two week low of $114.01 and a fifty-two week high of $212.49. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.30 and a current ratio of 1.30. The business has a 50 day moving average price of $184.63 and a 200-day moving average price of $168.93.

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 for the quarter, missing analysts' consensus estimates of $1.23 by ($0.06). The company had revenue of $1.31 billion for 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%. 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 posted $0.72 EPS. Equities research analysts predict that TKO Group Holdings, Inc. will post 3.88 earnings per share for the current year.

TKO Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 15th will be issued a dividend of $0.76 per share. This is a boost 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%. The ex-dividend date is Monday, September 15th. TKO Group's dividend payout ratio is currently 125.62%.

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

Analyst Upgrades and Downgrades

TKO has been the subject of several research reports. Sanford C. Bernstein initiated coverage on TKO Group in a research note on Wednesday, June 4th. They issued an "outperform" rating and a $190.00 target price for the company. Northcoast Research lowered TKO Group from a "buy" rating to a "neutral" rating in a research note on Thursday, July 10th. UBS Group upped their target price on TKO Group from $200.00 to $235.00 and gave the stock a "buy" rating in a research note on Wednesday, September 17th. Zacks Research raised TKO Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 2nd. Finally, Citigroup upped their target price on TKO Group from $200.00 to $225.00 and gave the stock a "buy" rating in a research note on Friday, August 15th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $199.71.

Insider Buying and Selling

In other TKO Group news, Director Peter C. B. Bynoe bought 740 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The stock was bought at an average price of $203.00 per share, for a total transaction of $150,220.00. Following the completion of the acquisition, the director directly owned 5,187 shares in the company, valued at $1,052,961. The trade was a 16.64% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Nick Khan sold 45,168 shares of the company's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $170.82, for a total value of $7,715,597.76. Following the transaction, the director owned 156,494 shares of the company's stock, valued at approximately $26,732,305.08. This represents a 22.40% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 73,725 shares of company stock valued at $12,767,807. 61.30% of the stock is owned by corporate 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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