Sumitomo Mitsui DS Asset Management Company Ltd Purchases 38,695 Shares of TKO Group Holdings, Inc. $TKO

Key Points

• Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in TKO Group Holdings by 368.8%, owning 49,186 shares now valued at approximately $8.95 million.
• TKO Group recently announced a quarterly dividend of $0.76 per share, up from the previous $0.38, reflecting a 1.5% yield on an annualized basis.
• Analyst ratings for TKO Group are largely positive, with one strong buy, fourteen buy ratings, and an average target price of $196.50.

Sumitomo Mitsui DS Asset Management Company Ltd boosted its stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 368.8% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 49,186 shares of the company's stock after acquiring an additional 38,695 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in TKO Group were worth $8,949,000 as of its most recent filing with the SEC.

Other hedge funds have also added to or reduced their stakes in the company. Sentry Investment Management LLC bought a new position in TKO Group in the 1st quarter worth approximately $25,000. Hemington Wealth Management increased its holdings in TKO Group by 425.0% during the 1st quarter. Hemington Wealth Management now owns 168 shares of the company's stock worth $25,000 after acquiring an additional 136 shares during the period. N.E.W. Advisory Services LLC bought a new stake in TKO Group during the 1st quarter worth approximately $26,000. Bartlett & CO. Wealth Management LLC bought a new stake in TKO Group during the 1st quarter worth approximately $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 worth $33,000 after acquiring an additional 122 shares during the period. Institutional investors own 89.79% of the company's stock.

TKO Group Trading Down 0.7%

Shares of NYSE:TKO traded down $1.52 on Friday, hitting $201.28. The company had a trading volume of 2,052,671 shares, compared to its average volume of 1,006,501. The firm's 50-day simple moving average is $181.83 and its two-hundred day simple moving average is $166.97. TKO Group Holdings, Inc. has a 1 year low of $114.01 and a 1 year high of $212.49. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28. The firm has a market capitalization of $39.91 billion, a price-to-earnings ratio of 83.17 and a beta of 0.79.

TKO Group (NYSE:TKO - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $1.17 EPS for the quarter, missing the consensus estimate of $1.23 by ($0.06). TKO Group had a return on equity of 2.82% and a net margin of 5.40%.The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.23 billion. During the same period in the prior year, the business posted $0.72 earnings per share. The company's revenue for the quarter was up 53.7% on a year-over-year basis. Equities analysts anticipate that TKO Group Holdings, Inc. will post 3.88 earnings per share for the current fiscal year.

TKO Group Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th will be given a $0.76 dividend. The ex-dividend date of this dividend is Monday, September 15th. This represents a $3.04 annualized dividend and a dividend yield of 1.5%. This is a positive change from TKO Group's previous quarterly dividend of $0.38. TKO Group's dividend payout ratio is 125.62%.

TKO Group declared that its Board of Directors has initiated a stock buyback program on Monday, September 15th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to repurchase up to 2.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on TKO shares. Zacks Research raised shares of TKO Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 2nd. Morgan Stanley reaffirmed an "outperform" rating on shares of TKO Group in a report on Sunday, August 10th. JPMorgan Chase & Co. upped their target price on shares of TKO Group from $182.00 to $212.00 and gave the stock an "overweight" rating in a report on Thursday, August 21st. Sanford C. Bernstein assumed coverage on shares of TKO Group in a report on Wednesday, June 4th. They set an "outperform" rating and a $190.00 target price on the stock. Finally, UBS Group boosted their price target on shares of TKO Group from $200.00 to $235.00 and gave the stock a "buy" rating in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $196.50.

Insider Activity

In related news, Director Peter C. B. Bynoe bought 740 shares of the company's stock in a transaction dated Tuesday, September 16th. The stock was purchased at an average cost of $203.00 per share, with a total value of $150,220.00. Following the transaction, the director owned 5,187 shares in the company, valued at approximately $1,052,961. This trade represents a 16.64% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Nick Khan sold 9,519 shares of the stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $186.43, for a total transaction of $1,774,627.17. Following the completion of the transaction, the director 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 sold 73,725 shares of company stock valued at $12,767,807. Corporate insiders own 61.30% of the company's stock.

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.