TKO Group Holdings, Inc. $TKO Position Lifted by Annex Advisory Services LLC

Key Points

• Annex Advisory Services LLC increased its stake in TKO Group by 14.9% during Q2, owning 373,059 shares, which accounts for 1.6% of its total holdings.
• TKO Group recently announced a $1.00 billion share buyback program and a quarterly dividend increase to $0.76 per share, reflecting confidence in the stock's valuation.
• Despite a reported earnings miss of $1.17 per share against an expected $1.23, TKO's revenue for the quarter was up 53.7% year-over-year, totaling $1.31 billion.

Annex Advisory Services LLC grew its stake in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 14.9% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 373,059 shares of the company's stock after acquiring an additional 48,427 shares during the period. TKO Group comprises about 1.6% of Annex Advisory Services LLC's holdings, making the stock its 18th biggest position. Annex Advisory Services LLC owned about 0.19% of TKO Group worth $67,878,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Hemington Wealth Management lifted its position in shares of TKO Group by 425.0% during the 1st quarter. Hemington Wealth Management now owns 168 shares of the company's stock valued at $25,000 after acquiring an additional 136 shares during the period. N.E.W. Advisory Services LLC purchased a new position in TKO Group during the 1st quarter valued at about $26,000. Sentry Investment Management LLC purchased a new position in TKO Group during the 1st quarter valued at about $25,000. Bartlett & CO. Wealth Management LLC purchased a new position in TKO Group during the 1st quarter valued at about $27,000. Finally, Farther Finance Advisors LLC increased its holdings in TKO Group by 129.8% during the 1st quarter. Farther Finance Advisors LLC now owns 216 shares of the company's stock valued at $33,000 after acquiring an additional 122 shares in the last quarter. 89.79% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, Director Peter C. B. Bynoe purchased 740 shares of the stock in a transaction that occurred on 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 acquisition, the director owned 5,187 shares in the company, valued at approximately $1,052,961. This trade represents a 16.64% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Nick Khan sold 9,519 shares of the firm's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $186.43, for a total transaction of $1,774,627.17. Following the sale, the director directly owned 137,456 shares of the company's stock, valued at approximately $25,625,922.08. The trade was a 6.48% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 73,725 shares of company stock valued at $12,767,807. Company insiders own 53.80% of the company's stock.

TKO Group Trading Up 0.5%

Shares of TKO Group stock traded up $0.96 during trading hours on Tuesday, hitting $200.63. The company's stock had a trading volume of 1,131,926 shares, compared to its average volume of 1,261,769. The company has a market capitalization of $39.79 billion, a PE ratio of 82.72 and a beta of 0.78. The business has a fifty day moving average of $182.34 and a 200 day moving average of $167.60. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28. TKO Group Holdings, Inc. has a 1-year low of $114.01 and a 1-year high of $212.49.

TKO Group (NYSE:TKO - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.23 billion. TKO Group had a net margin of 5.40% and a return on equity of 2.82%. TKO Group's revenue for the quarter was up 53.7% on a year-over-year basis. During the same period in the previous year, the business posted $0.72 earnings per share. As a group, equities analysts forecast that TKO Group Holdings, Inc. will post 3.88 EPS for the current year.

TKO Group declared that its board has approved a share buyback plan on Monday, September 15th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 2.5% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

TKO Group Increases Dividend

The company also recently declared 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 represents a $3.04 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Monday, September 15th. This is a positive change from TKO Group's previous quarterly dividend of $0.38. TKO Group's dividend payout ratio (DPR) is 125.62%.

Analysts Set New Price Targets

TKO has been the subject of several recent research reports. Morgan Stanley restated an "outperform" rating on shares of TKO Group in a report on Sunday, August 10th. Sanford C. Bernstein initiated coverage on shares of TKO Group in a report on Wednesday, June 4th. They set an "outperform" rating and a $190.00 target price for the company. Northcoast Research downgraded shares of TKO Group from a "buy" rating to a "neutral" rating in a report on Thursday, July 10th. Bank of America lifted their price target on shares of TKO Group from $200.00 to $210.00 and gave the stock a "buy" rating in a report on Tuesday, August 12th. Finally, Zacks Research upgraded shares of TKO Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $196.50.

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.