TKO Group Holdings, Inc. $TKO Shares Sold by Blue Grotto Capital LLC

Key Points

• Blue Grotto Capital LLC cut its stake in TKO Group by 8.2% in Q3, selling 28,354 shares and leaving it with 319,202 shares (about 0.16% of TKO), making TKO its 3rd largest holding valued at roughly $64.5 million.
• Company insiders have been net sellers—169,563 shares worth about $34.6 million were sold in the last 90 days, including large January sales by Nick Khan and Mark S. Shapiro that each trimmed their positions by ~23%, while insiders still own 61.3% of the stock.
• TKO reported Q results that missed EPS expectations (‑$0.08 vs. $0.12 expected) but beat on revenue ($1.04B, up 11.9% YoY), and announced a quarterly dividend of $0.78 per share (1.6% yield; payout ratio 138.7%).

Blue Grotto Capital LLC lowered its stake in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 8.2% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 319,202 shares of the company's stock after selling 28,354 shares during the quarter. TKO Group comprises about 7.5% of Blue Grotto Capital LLC's holdings, making the stock its 3rd largest position. Blue Grotto Capital LLC owned approximately 0.16% of TKO Group worth $64,466,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Certuity LLC grew its stake in shares of TKO Group by 7.6% in the 3rd quarter. Certuity LLC now owns 1,438 shares of the company's stock valued at $290,000 after purchasing an additional 101 shares during the last quarter. Tocqueville Asset Management L.P. increased its holdings in shares of TKO Group by 4.1% in the third quarter. Tocqueville Asset Management L.P. now owns 2,391 shares of the company's stock valued at $483,000 after purchasing an additional 95 shares during the period. UBS Group AG raised its stake in shares of TKO Group by 31.7% during the third quarter. UBS Group AG now owns 1,274,142 shares of the company's stock worth $257,326,000 after purchasing an additional 307,000 shares during the last quarter. Nemes Rush Group LLC lifted its holdings in shares of TKO Group by 8.0% during the third quarter. Nemes Rush Group LLC now owns 14,380 shares of the company's stock worth $2,904,000 after purchasing an additional 1,068 shares during the period. Finally, Mackenzie Financial Corp grew its position in TKO Group by 5.6% in the 3rd quarter. Mackenzie Financial Corp now owns 6,990 shares of the company's stock valued at $1,412,000 after buying an additional 371 shares during the last quarter. 89.79% of the stock is owned by hedge funds and other institutional investors.

TKO Group Price Performance

TKO Group stock opened at $201.24 on Friday. The company has a market cap of $39.06 billion, a P/E ratio of 89.44 and a beta of 0.66. TKO Group Holdings, Inc. has a one year low of $133.07 and a one year high of $226.94. The business has a fifty day moving average of $206.83 and a two-hundred day moving average of $199.21. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.26 and a current ratio of 1.26.

TKO Group (NYSE:TKO - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported ($0.08) earnings per share for the quarter, missing analysts' consensus estimates of $0.12 by ($0.20). The company had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.02 billion. TKO Group had a return on equity of 2.07% and a net margin of 4.13%.The business's revenue for the quarter was up 11.9% compared to the same quarter last year. During the same period last year, the company earned $0.28 earnings per share. As a group, analysts predict that TKO Group Holdings, Inc. will post 3.88 earnings per share for the current fiscal year.

TKO Group Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th will be given a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a yield of 1.6%. The ex-dividend date is Monday, March 16th. TKO Group's dividend payout ratio is presently 138.67%.

Analyst Ratings Changes

Several brokerages have issued reports on TKO. Roth Mkm reissued a "buy" rating and issued a $240.00 price objective on shares of TKO Group in a research note on Thursday, February 12th. Pivotal Research raised their target price on shares of TKO Group from $235.00 to $250.00 and gave the stock a "buy" rating in a research note on Thursday, February 26th. Wolfe Research reiterated a "peer perform" rating on shares of TKO Group in a research note on Thursday, March 5th. Zacks Research lowered shares of TKO Group from a "hold" rating to a "strong sell" rating in a research note on Friday, March 6th. Finally, Wall Street Zen cut shares of TKO Group from a "hold" rating to a "sell" rating in a report on Saturday, March 7th. Thirteen analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $231.73.

Insider Activity at TKO Group

In other news, Director Nick Khan sold 37,425 shares of TKO Group stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $204.01, for a total transaction of $7,635,074.25. Following the completion of the sale, the director directly owned 122,868 shares in the company, valued at approximately $25,066,300.68. This trade represents a 23.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark S. Shapiro sold 32,022 shares of the business's stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $204.08, for a total value of $6,535,049.76. Following the sale, the insider directly owned 104,842 shares in the company, valued at $21,396,155.36. This trade represents a 23.40% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 169,563 shares of company stock valued at $34,641,917. 61.30% of the stock is currently owned by corporate insiders.

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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