TKO Group Holdings, Inc. $TKO Shares Sold by Lindsell Train Ltd

Key Points

• Lindsell Train cut its TKO position by 7.6%, selling 159,700 shares in the third quarter. It still held 1.94 million shares, worth about $348.5 million, making TKO its third-largest holding.
• TKO beat quarterly earnings expectations, reporting $1.33 per share versus $1.20 expected, while revenue rose 21.4% year over year to $1.36 billion. Revenue nevertheless fell short of estimates, and the company raised its full-year guidance.
• Analysts maintain a generally positive outlook: TKO has a “Moderate Buy” consensus rating and an average price target of $229.29. The company also priced a $1 billion offering of 6.5% senior secured notes due 2031, adding future interest costs.

Lindsell Train Ltd decreased its position in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 7.6% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,939,162 shares of the company's stock after selling 159,700 shares during the period. TKO Group makes up approximately 15.0% of Lindsell Train Ltd's holdings, making the stock its 3rd biggest position. Lindsell Train Ltd owned 1.02% of TKO Group worth $348,506,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Cornerstone Planning Group LLC raised its holdings in TKO Group by 543.5% in 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 last quarter. Ameritas Advisory Services LLC purchased a new stake in shares of TKO Group during the second quarter valued at approximately $43,000. Summit Securities Group LLC grew its holdings in shares of TKO Group by 211.1% during the first quarter. Summit Securities Group LLC now owns 308 shares of the company's stock valued at $62,000 after buying an additional 209 shares during the last quarter. AlphaCentric Advisors LLC purchased a new stake in shares of TKO Group during the first quarter valued at approximately $99,000. Finally, Allworth Financial LP increased its position in shares of TKO Group by 12.2% during the second quarter. Allworth Financial LP now owns 615 shares of the company's stock valued at $124,000 after acquiring an additional 67 shares in the last quarter. 89.79% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting TKO Group

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: TKO beat third-quarter earnings expectations, posting $1.33 per share versus $1.20 expected, while revenue rose 21.4% year over year to $1.36 billion. UFC revenue surged 60%, helping drive the results, and the company raised its full-year guidance. TKO Reports Third Quarter 2026 Results
• Positive Sentiment: Management said it expects WWE and UFC events in the Middle East, including WrestleMania 43 in Saudi Arabia, to proceed as planned despite geopolitical uncertainty. TKO also said it has already received half of the WrestleMania payment upfront, offering some protection if plans change. TKO on Middle East events
• Neutral Sentiment: Susquehanna trimmed its price target from $224 to $223 but maintained a positive rating, indicating the analyst still sees potential upside. Analyst price-target update
• Negative Sentiment: Revenue came in below analysts’ $1.38 billion estimate, with WWE weakness tempering UFC’s growth. TKO also priced a $1 billion offering of 6.5% senior secured notes due 2031, adding debt and future interest costs. Senior secured notes offering
• Negative Sentiment: Valuation may also weigh on the shares: TKO trades at a trailing P/E of about 66, and a recent analysis suggested the stock may be priced at a premium after its substantial multiyear gains. TKO valuation analysis

Analyst Ratings Changes

A number of equities analysts recently weighed in on the stock. Morgan Stanley boosted their price objective on shares of TKO Group from $225.00 to $230.00 and gave the stock an "overweight" rating in a report on Tuesday, August 4th. Arete Research upgraded TKO Group from a "neutral" rating to a "buy" rating and set a $208.00 target price on the stock in a research note on Tuesday, October 20th. Rothschild & Co Redburn increased their target price on TKO Group from $220.00 to $225.00 in a research note on Wednesday, August 5th. Robert W. Baird reduced their target price on TKO Group from $275.00 to $250.00 and set an "outperform" rating for the company in a report on Tuesday, August 18th. Finally, Guggenheim boosted their price target on TKO Group from $228.00 to $240.00 and gave the stock a "buy" rating in a research note on Thursday. Fourteen equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $229.29.

Insider Transactions at TKO Group

In other news, Director Nick Khan sold 9,589 shares of the firm's stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $197.17, for a total value of $1,890,663.13. Following the transaction, the director directly owned 39,344 shares in the company, valued at $7,757,456.48. This trade represents a 19.60% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Andrew Schleimer sold 9,942 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total value of $1,932,625.38. Following the completion of the transaction, the chief financial officer owned 38,051 shares in the company, valued at approximately $7,396,733.89. This trade represents a 20.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 97,325 shares of company stock valued at $18,798,012 over the last 90 days. 64.30% of the stock is owned by corporate insiders.

TKO Group Stock Down 2.6%

TKO opened at $188.49 on Friday. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.58. The firm has a 50 day moving average price of $182.52 and a 200-day moving average price of $193.17. TKO Group Holdings, Inc. has a twelve month low of $170.14 and a twelve month high of $226.94. The stock has a market capitalization of $35.68 billion, a price-to-earnings ratio of 50.81 and a beta of 0.66.

TKO Group (NYSE:TKO - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The company reported $1.33 earnings per share for the quarter, beating analysts' consensus estimates of $1.20 by $0.13. TKO Group had a net margin of 5.19% and a return on equity of 3.31%. The company had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the prior year, the firm earned $0.47 earnings per share. The firm's revenue for the quarter was up 21.4% compared to the same quarter last year. Equities research analysts forecast that TKO Group Holdings, Inc. will post 4.43 earnings per share for the current year.

TKO Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were issued a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Tuesday, September 15th. TKO Group's dividend payout ratio is presently 110.88%.

TKO Group Profile

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates UFC and WWE, two global combat-sports and sports-entertainment brands. UFC promotes mixed martial arts events, while WWE produces live and televised professional wrestling programming featuring its roster of performers, storylines and branded events.

In addition to its core properties, TKO provides related media, licensing, sponsorship, live-event and consumer-products opportunities. The company's businesses serve audiences internationally through live events, broadcast and streaming distribution, digital content, merchandise and other commercial partnerships.

TKO was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings.

Want to see what other hedge funds are holding TKO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for TKO Group Holdings, Inc. (NYSE:TKO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.