TKO Group Holdings, Inc. $TKO Shares Sold by Dimensional Fund Advisors LP

Key Points

• Dimensional Fund Advisors cut its TKO Group stake by 8.2% in the first quarter, selling 27,278 shares and retaining 306,043 shares valued at approximately $61.7 million. Institutional investors and hedge funds collectively own 89.79% of the company.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $233.53. Recent targets ranged from $222 to $235, despite TKO shares opening at $181.90.
• TKO reported first-quarter revenue of $1.60 billion, up 25.9% year over year, and EPS of $1.12, slightly exceeding estimates. The company also raised its quarterly dividend to $0.79 per share, although its annualized payout ratio is high at 117.91%.

Dimensional Fund Advisors LP trimmed its position in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 8.2% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 306,043 shares of the company's stock after selling 27,278 shares during the quarter. Dimensional Fund Advisors LP owned 0.16% of TKO Group worth $61,692,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the company. AlphaCentric Advisors LLC purchased a new stake in TKO Group during the first quarter worth about $99,000. KBC Group NV boosted its stake in shares of TKO Group by 1,200.6% in the first quarter. KBC Group NV now owns 24,919 shares of the company's stock valued at $5,025,000 after purchasing an additional 23,003 shares during the period. Dorsey Wright & Associates purchased a new position in shares of TKO Group in the first quarter valued at approximately $1,657,000. Heartland Bank & Trust Co acquired a new position in shares of TKO Group in the first quarter valued at approximately $473,000. Finally, Cornerstone Planning Group LLC grew its holdings in shares of TKO Group by 543.5% in the first quarter. Cornerstone Planning Group LLC now owns 148 shares of the company's stock valued at $28,000 after purchasing an additional 125 shares in the last quarter. 89.79% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts recently weighed in on TKO shares. Wall Street Zen raised shares of TKO Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 9th. Roth Capital set a $228.00 price target on shares of TKO Group in a research note on Monday, May 4th. Weiss Ratings raised TKO Group from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Thursday, May 7th. Sanford C. Bernstein reduced their price objective on TKO Group from $240.00 to $235.00 and set an "outperform" rating on the stock in a research note on Tuesday. Finally, JPMorgan Chase & Co. decreased their target price on TKO Group from $225.00 to $222.00 and set an "overweight" rating for the company in a report on Tuesday, July 21st. Eleven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $233.53.

Insiders Place Their Bets

In other TKO Group news, CEO Ariel Emanuel purchased 10,805 shares of the firm's stock in a transaction on Wednesday, May 13th. The stock was bought at an average cost of $185.09 per share, with a total value of $1,999,897.45. Following the acquisition, the chief executive officer directly owned 154,655 shares of the company's stock, valued at approximately $28,625,093.95. This represents a 7.51% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Andrew M. Schleimer acquired 2,696 shares of the stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average cost of $185.44 per share, with a total value of $499,946.24. Following the completion of the transaction, the chief financial officer owned 30,240 shares in the company, valued at approximately $5,607,705.60. This represents a 9.79% increase in their position. The disclosure for this purchase is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders bought 24,308 shares of company stock worth $4,499,679 and sold 51,775 shares worth $9,716,321. 64.30% of the stock is owned by insiders.

TKO Group Stock Down 1.0%

Shares of NYSE:TKO opened at $181.90 on Friday. TKO Group Holdings, Inc. has a fifty-two week low of $152.29 and a fifty-two week high of $226.94. The firm's 50 day moving average price is $194.93 and its 200 day moving average price is $197.74. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.57. The stock has a market cap of $35.31 billion, a price-to-earnings ratio of 67.87 and a beta of 0.60.

TKO Group (NYSE:TKO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $1.12 EPS for the quarter, topping the consensus estimate of $1.11 by $0.01. TKO Group had a net margin of 4.47% and a return on equity of 2.49%. The company had revenue of $1.60 billion during the quarter, compared to analysts' expectations of $1.59 billion. During the same quarter in the previous year, the business posted $0.69 EPS. The firm's revenue was up 25.9% on a year-over-year basis. As a group, equities research analysts predict that TKO Group Holdings, Inc. will post 4.92 earnings per share for the current fiscal year.

TKO Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a dividend of $0.79 per share. The ex-dividend date was Monday, June 15th. This is an increase from TKO Group's previous quarterly dividend of $0.78. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.7%. TKO Group's payout ratio is presently 117.91%.

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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