U.S. Capital Wealth Advisors LLC Purchases New Shares in TKO Group Holdings, Inc. $TKO

Key Points

• U.S. Capital Wealth Advisors LLC has acquired 17,743 shares of TKO Group Holdings, Inc., valued at approximately $3.23 million, during the second quarter.
• TKO Group announced a $1 billion share buyback program which signals the board's belief that the company's shares are undervalued.
• TKO Group's recent quarterly earnings reports indicated earnings per share (EPS) of $1.17, missing expectations, but showing a year-over-year revenue increase of 53.7%.

U.S. Capital Wealth Advisors LLC purchased a new stake in shares of TKO Group Holdings, Inc. (NYSE:TKO - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 17,743 shares of the company's stock, valued at approximately $3,228,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Sentry Investment Management LLC purchased a new stake in shares of TKO Group in the first quarter valued at $25,000. Hemington Wealth Management grew its holdings in shares of TKO Group by 425.0% in the first quarter. Hemington Wealth Management now owns 168 shares of the company's stock worth $25,000 after purchasing an additional 136 shares during the last quarter. N.E.W. Advisory Services LLC bought a new position in TKO Group during the 1st quarter worth about $26,000. Bartlett & CO. Wealth Management LLC bought a new position in TKO Group during the 1st quarter worth about $27,000. Finally, Farther Finance Advisors LLC grew 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 in the last quarter. Hedge funds and other institutional investors own 89.79% of the company's stock.

TKO Group Trading Down 0.7%

Shares of TKO stock opened at $199.67 on Tuesday. The stock has a market cap of $39.59 billion, a price-to-earnings ratio of 82.51 and a beta of 0.78. TKO Group Holdings, Inc. has a twelve month low of $114.01 and a twelve month high of $212.49. The company's 50-day moving average price is $182.34 and its 200-day moving average price is $167.60. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.28.

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

TKO Group announced that its board has authorized a share buyback program on Monday, September 15th that permits the company to buyback $1.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its shares are undervalued.

TKO Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th will be paid a dividend of $0.76 per share. This represents a $3.04 dividend on an annualized basis and a yield of 1.5%. This is a boost from TKO Group's previous quarterly dividend of $0.38. The ex-dividend date is Monday, September 15th. TKO Group's payout ratio is currently 125.62%.

Insider Transactions at TKO Group

In other TKO Group news, Director Peter C. B. Bynoe purchased 740 shares of the business's stock in a transaction on Tuesday, September 16th. The shares were bought at an average cost of $203.00 per share, for a total transaction of $150,220.00. Following the completion of the purchase, the director directly owned 5,187 shares of the company's stock, valued at approximately $1,052,961. This trade represents a 16.64% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Nick Khan sold 9,519 shares of the company's stock in a transaction that occurred on 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 sale, the director owned 137,456 shares in the company, valued at $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. Insiders have sold 73,725 shares of company stock worth $12,767,807 over the last quarter. Insiders own 53.80% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms recently commented on TKO. JPMorgan Chase & Co. increased their target price on shares of TKO Group from $182.00 to $212.00 and gave the company an "overweight" rating in a research report on Thursday, August 21st. Zacks Research raised shares of TKO Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 2nd. Sanford C. Bernstein started coverage on shares of TKO Group in a research report on Wednesday, June 4th. They set an "outperform" rating and a $190.00 price target for the company. Roth Capital lifted their target price on shares of TKO Group from $208.00 to $210.00 and gave the company a "buy" rating in a report on Tuesday, August 12th. Finally, UBS Group lifted their target price on shares of TKO Group from $200.00 to $235.00 and gave the company a "buy" rating in a report on Wednesday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price 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.

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