Wright Investors Service Inc. Has $656,000 Stake in TKO Group Holdings, Inc. $TKO

Key Points

• Wright Investors Service Inc. reduced its stake in TKO Group Holdings by 49.5%, owning 3,604 shares worth $656,000 after selling 3,536 shares in Q2.
• The company initiated a $1 billion stock buyback plan, allowing it to repurchase up to 2.5% of its outstanding shares, indicative of its leaders' belief that the stock is undervalued.
• TKO Group announced a new quarterly dividend of $0.76 per share, increasing from the previous $0.38, representing a 1.5% yield with a payout ratio of 125.62%.

Wright Investors Service Inc. reduced its stake in TKO Group Holdings, Inc. (NYSE:TKO - Free Report) by 49.5% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,604 shares of the company's stock after selling 3,536 shares during the quarter. Wright Investors Service Inc.'s holdings in TKO Group were worth $656,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently modified their holdings of the business. Hemington Wealth Management boosted its stake in TKO Group by 425.0% in the 1st quarter. Hemington Wealth Management now owns 168 shares of the company's stock worth $25,000 after purchasing an additional 136 shares during the period. N.E.W. Advisory Services LLC purchased a new stake in TKO Group during the 1st quarter worth about $26,000. Sentry Investment Management LLC acquired a new stake in TKO Group during the 1st quarter worth approximately $25,000. Bartlett & CO. Wealth Management LLC purchased a new position in TKO Group in the 1st quarter valued at approximately $27,000. Finally, Farther Finance Advisors LLC grew its position in TKO Group by 129.8% during the first quarter. Farther Finance Advisors LLC now owns 216 shares of the company's stock valued at $33,000 after acquiring an additional 122 shares during the period. Institutional investors own 89.79% of the company's stock.

Insiders Place Their Bets

In other news, Director Peter C. B. Bynoe acquired 740 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was acquired at an average price of $203.00 per share, for a total transaction of $150,220.00. Following the completion of the acquisition, the director directly owned 5,187 shares in the company, valued at $1,052,961. This represents a 16.64% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director Nick Khan sold 45,168 shares of the company's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $170.82, for a total value of $7,715,597.76. Following the completion of the transaction, the director directly owned 156,494 shares in the company, valued at approximately $26,732,305.08. The trade was a 22.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 73,725 shares of company stock valued at $12,767,807 in the last quarter. 53.80% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of brokerages have recently commented on TKO. JPMorgan Chase & Co. increased their price objective on TKO Group from $182.00 to $212.00 and gave the company an "overweight" rating in a research report on Thursday, August 21st. Seaport Res Ptn lowered shares of TKO Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 8th. Bank of America boosted their target price on shares of TKO Group from $200.00 to $210.00 and gave the stock a "buy" rating in a research report on Tuesday, August 12th. Zacks Research upgraded shares of TKO Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 2nd. Finally, Morgan Stanley reaffirmed an "outperform" rating on shares of TKO Group in a report on Sunday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, TKO Group currently has an average rating of "Moderate Buy" and an average price target of $196.50.

TKO Group Stock Down 0.7%

Shares of TKO Group stock traded down $1.52 on Friday, reaching $201.28. 2,052,671 shares of the company were exchanged, compared to its average volume of 1,070,426. The company has a market cap of $39.91 billion, a P/E ratio of 83.17 and a beta of 0.78. TKO Group Holdings, Inc. has a 1-year low of $114.01 and a 1-year high of $212.49. The stock's 50 day moving average price is $181.83 and its 200-day moving average price is $167.21. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.30 and a quick ratio of 1.30.

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

TKO Group announced that its board has initiated a share repurchase plan on Monday, September 15th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 2.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

TKO Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors 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%. The ex-dividend date is Monday, September 15th. This is an increase from TKO Group's previous quarterly dividend of $0.38. TKO Group's dividend payout ratio (DPR) is currently 125.62%.

TKO Group Profile

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.