TKO Group Holdings, Inc. $TKO is Cat Rock Capital Management LP's 5th Largest Position

Key Points

• Cat Rock Capital increased its TKO Group stake by 10.7% in the second quarter to 339,211 shares worth approximately $68.3 million, making TKO its fifth-largest holding and 15.8% of its portfolio.
• TKO reported quarterly revenue of $1.55 billion, up 18.2% year over year, but earnings per share of $1.34 missed analysts’ $1.41 estimate.
• The stock had a consensus “Moderate Buy” rating and an average analyst price target of $238.08, compared with a reported opening price of $182.78; TKO also raised its quarterly dividend to $0.79 per share.

Cat Rock Capital Management LP lifted its holdings in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 10.7% during the second quarter, according to its most recent disclosure with the SEC. The fund owned 339,211 shares of the company's stock after acquiring an additional 32,700 shares during the period. TKO Group makes up approximately 15.8% of Cat Rock Capital Management LP's investment portfolio, making the stock its 5th largest holding. Cat Rock Capital Management LP owned 0.18% of TKO Group worth $68,287,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Elyxium Wealth LLC purchased a new stake in TKO Group during the 4th quarter worth approximately $27,000. Cornerstone Planning Group LLC lifted its stake in shares of TKO Group by 543.5% during the first quarter. Cornerstone Planning Group LLC now owns 148 shares of the company's stock worth $28,000 after buying an additional 125 shares during the period. CYBER HORNET ETFs LLC acquired a new stake in shares of TKO Group during the second quarter worth $34,000. MUFG Securities EMEA plc purchased a new stake in shares of TKO Group during the second quarter valued at $36,000. Finally, Clearstead Advisors LLC increased its position in shares of TKO Group by 234.0% in the 4th quarter. Clearstead Advisors LLC now owns 177 shares of the company's stock valued at $37,000 after acquiring an additional 124 shares during the period. 89.79% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other TKO Group news, Director Nick Khan sold 12,998 shares of the business's stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $181.11, for a total value of $2,354,067.78. Following the completion of the transaction, the director directly owned 48,933 shares of the company's stock, valued at approximately $8,862,255.63. The trade was a 20.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark S. Shapiro sold 19,120 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total value of $3,716,736.80. Following the completion of the sale, the insider owned 147,071 shares in the company, valued at approximately $28,589,131.69. This represents a 11.50% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 120,404 shares of company stock valued at $23,196,582 in the last ninety days. Insiders own 64.30% of the company's stock.

TKO Group Price Performance

NYSE:TKO opened at $182.78 on Tuesday. TKO Group Holdings, Inc. has a one year low of $176.00 and a one year high of $226.94. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.28 and a current ratio of 1.28. The firm has a market cap of $34.59 billion, a price-to-earnings ratio of 64.13 and a beta of 0.63. The firm's fifty day moving average is $190.82 and its two-hundred day moving average is $195.68.

TKO Group (NYSE:TKO - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The company reported $1.34 earnings per share for the quarter, missing the consensus estimate of $1.41 by ($0.07). The company had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.54 billion. TKO Group had a return on equity of 2.67% and a net margin of 4.33%.TKO Group's revenue for the quarter was up 18.2% on a year-over-year basis. During the same period in the prior year, the business posted $1.17 earnings per share. Research analysts expect that TKO Group Holdings, Inc. will post 5.18 EPS for the current year.

TKO Group Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were given a dividend of $0.79 per share. This is an increase from TKO Group's previous quarterly dividend of $0.78. This represents a $3.16 annualized dividend and a yield of 1.7%. The ex-dividend date was Monday, June 15th. TKO Group's dividend payout ratio (DPR) is 110.88%.

Wall Street Analyst Weigh In

A number of brokerages have commented on TKO. Roth Capital reaffirmed a "buy" rating and set a $230.00 price target on shares of TKO Group in a research report on Tuesday, August 4th. Guggenheim increased their price objective on TKO Group from $230.00 to $235.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Wall Street Zen upgraded TKO Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of TKO Group in a report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. dropped their target price on TKO Group from $225.00 to $222.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 21st. Eleven research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, TKO Group presently has a consensus rating of "Moderate Buy" and an average target price of $238.08.

TKO Group Company 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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