Roth Capital Has Positive View of TKO Group FY2026 Earnings

Key Points

• Roth Capital has increased its FY2026 earnings per share estimate for TKO Group from $2.18 to $2.22, maintaining a "Buy" rating and a price target of $210.00.
• In its last earnings report, TKO Group reported an EPS of $1.17, which was below analyst expectations, but revenues surged to $1.31 billion, a 53.7% increase compared to the previous year.
• Insider activity shows mixed signals, with a director selling 45,168 shares while another purchased additional shares; overall, insiders own 61.30% of the company's stock.

TKO Group Holdings, Inc. (NYSE:TKO - Free Report) - Equities research analysts at Roth Capital boosted their FY2026 earnings estimates for shares of TKO Group in a research report issued on Tuesday, August 12th. Roth Capital analyst E. Handler now anticipates that the company will post earnings of $2.22 per share for the year, up from their previous forecast of $2.18. Roth Capital currently has a "Buy" rating and a $210.00 target price on the stock. The consensus estimate for TKO Group's current full-year earnings is $3.88 per share.

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 analysts' consensus estimates of $1.23 by ($0.06). The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.23 billion. TKO Group had a return on equity of 2.82% and a net margin of 5.40%. The company's revenue for the quarter was up 53.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.72 earnings per share.

TKO has been the subject of several other research reports. Sanford C. Bernstein began coverage on shares of TKO Group in a research note on Wednesday, June 4th. They issued an "outperform" rating and a $190.00 target price for the company. Morgan Stanley reissued an "outperform" rating on shares of TKO Group in a research note on Sunday, August 10th. The Goldman Sachs Group raised their price objective on shares of TKO Group from $170.00 to $188.00 and gave the company a "buy" rating in a research note on Monday, May 12th. JPMorgan Chase & Co. raised their price objective on shares of TKO Group from $158.00 to $182.00 and gave the stock an "overweight" rating in a report on Wednesday, May 21st. Finally, Guggenheim lifted their price target on shares of TKO Group from $200.00 to $205.00 and gave the company a "buy" rating in a research note on Wednesday. Two analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, TKO Group presently has an average rating of "Moderate Buy" and an average price target of $187.38.

TKO Group Stock Down 1.1%

NYSE:TKO traded down $2.19 during trading hours on Thursday, reaching $188.81. The company's stock had a trading volume of 719,198 shares, compared to its average volume of 1,058,244. The company has a market cap of $37.44 billion, a price-to-earnings ratio of 78.02 and a beta of 0.72. TKO Group has a one year low of $113.16 and a one year high of $194.76. The business's 50-day moving average is $172.03 and its 200-day moving average is $161.86. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.30 and a quick ratio of 1.30.

Institutional Investors Weigh In On TKO Group

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its stake in TKO Group by 19.4% during the first quarter. Vanguard Group Inc. now owns 7,976,904 shares of the company's stock worth $1,218,951,000 after acquiring an additional 1,295,817 shares in the last quarter. Ninety One UK Ltd boosted its stake in TKO Group by 14.4% during the second quarter. Ninety One UK Ltd now owns 4,850,006 shares of the company's stock worth $882,459,000 after acquiring an additional 611,233 shares in the last quarter. Massachusetts Financial Services Co. MA raised its holdings in TKO Group by 2.0% during the second quarter. Massachusetts Financial Services Co. MA now owns 2,003,202 shares of the company's stock worth $364,483,000 after buying an additional 40,237 shares during the last quarter. Invesco Ltd. raised its holdings in TKO Group by 26.9% during the second quarter. Invesco Ltd. now owns 1,806,377 shares of the company's stock worth $328,670,000 after buying an additional 383,325 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its holdings in shares of TKO Group by 57.3% in the fourth quarter. Ameriprise Financial Inc. now owns 1,678,258 shares of the company's stock valued at $238,574,000 after purchasing an additional 611,178 shares during the last quarter. 89.79% of the stock is owned by institutional investors.

Insider Activity

In other news, Director Nick Khan sold 45,168 shares of the company's stock in a transaction on Monday, July 21st. The shares were sold at an average price of $170.82, for a total value of $7,715,597.76. Following the sale, the director directly owned 156,494 shares of the company's stock, valued at approximately $26,732,305.08. This represents a 22.40% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Peter C. B. Bynoe acquired 980 shares of TKO Group stock in a transaction dated Thursday, June 5th. The stock was purchased at an average cost of $169.59 per share, for a total transaction of $166,198.20. Following the completion of the purchase, the director owned 2,747 shares in the company, valued at approximately $465,863.73. The trade was a 55.46% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders sold 73,725 shares of company stock worth $12,501,561. 53.80% of the stock is currently owned by corporate insiders.

TKO Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 13th were given a $0.38 dividend. The ex-dividend date was Friday, June 13th. This represents a $1.52 annualized dividend and a dividend yield of 0.8%. TKO Group's payout ratio is presently 62.81%.

TKO Group Company 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.