TKO Group (NYSE:TKO) Hits New 12-Month Low - Here's Why

Key Points

• TKO Group shares fell to a new 52-week low of $170.92, below both their 50-day moving average of $187.31 and 200-day moving average of $191.00.
• Despite the stock decline, analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $237.50. Recent quarterly revenue rose 18.2% year over year to $1.55 billion, although earnings per share of $1.34 missed estimates.
• The company pays a quarterly dividend of $0.79, equivalent to a 1.8% annual yield, but its 110.88% payout ratio exceeds reported earnings. Insiders have sold roughly $21.3 million of shares over the past three months, primarily to cover tax obligations on vested equity awards.

TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) shares reached a new 52-week low during trading on Wednesday. The company traded as low as $170.92 and last traded at $171.58, with a volume of 71,398 shares trading hands. The stock had previously closed at $173.86.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on TKO. Guggenheim lifted their price target on TKO Group from $230.00 to $235.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Sanford C. Bernstein increased their price objective on TKO Group from $235.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, September 16th. JPMorgan Chase & Co. lowered their price objective on TKO Group from $225.00 to $222.00 and set an "overweight" rating for the company in a research report on Tuesday, July 21st. Benchmark reissued a "hold" rating on shares of TKO Group in a research report on Tuesday, August 4th. Finally, BTIG Research restated a "buy" rating and set a $237.00 target price on shares of TKO Group in a report on Tuesday, August 4th. Ten investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $237.50.

TKO Group Price Performance

The company has a debt-to-equity ratio of 0.58, a current ratio of 1.28 and a quick ratio of 1.28. The business's 50 day moving average price is $187.31 and its 200 day moving average price is $191.00. The stock has a market capitalization of $32.50 billion, a P/E ratio of 60.25 and a beta of 0.67.

TKO Group (NYSE:TKO - Get Free Report) last posted its earnings results on Monday, August 3rd. The company reported $1.34 earnings per share for the quarter, missing analysts' consensus estimates of $1.41 by ($0.07). The firm had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.54 billion. TKO Group had a net margin of 4.33% and a return on equity of 2.67%. The firm's revenue was up 18.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.17 EPS. Sell-side analysts forecast that TKO Group Holdings, Inc. will post 4.42 EPS for the current year.

TKO Group Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a $0.79 dividend. The ex-dividend date of this dividend was Tuesday, September 15th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.8%. TKO Group's dividend payout ratio is 110.88%.

Insiders Place Their Bets

In other TKO Group news, insider Mark S. Shapiro sold 19,120 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total transaction of $3,716,736.80. Following the sale, the insider directly owned 147,071 shares in the company, valued at $28,589,131.69. This represents a 11.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Andrew M. Schleimer sold 9,942 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $1,932,625.38. Following the completion of the sale, the chief financial officer directly owned 38,051 shares in the company, valued at approximately $7,396,733.89. This represents a 20.72% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 110,815 shares of company stock worth $21,322,699. Company insiders own 64.30% of the company's stock.

Institutional Investors Weigh In On TKO Group

Institutional investors and hedge funds have recently bought and sold shares of the company. QRG Capital Management Inc. boosted its stake in TKO Group by 5.8% in the 2nd quarter. QRG Capital Management Inc. now owns 2,812 shares of the company's stock worth $566,000 after purchasing an additional 155 shares in the last quarter. Sequoia Financial Advisors LLC grew its holdings in TKO Group by 26.7% during the second quarter. Sequoia Financial Advisors LLC now owns 2,797 shares of the company's stock worth $563,000 after acquiring an additional 590 shares during the period. Integrated Wealth Concepts LLC increased its holdings in shares of TKO Group by 19.5% during the 2nd quarter. Integrated Wealth Concepts LLC now owns 1,983 shares of the company's stock valued at $399,000 after purchasing an additional 324 shares in the last quarter. NewEdge Advisors LLC raised its position in shares of TKO Group by 12.5% in the second quarter. NewEdge Advisors LLC now owns 2,390 shares of the company's stock worth $481,000 after acquiring an additional 265 shares during the period. Finally, IFP Advisors Inc raised its holdings in TKO Group by 1.9% in the 2nd quarter. IFP Advisors Inc now owns 8,699 shares of the company's stock worth $1,751,000 after purchasing an additional 163 shares during the period. 89.79% of the stock is owned by institutional investors.

About TKO Group

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). The company was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings, creating a platform focused on live sports and entertainment properties.

UFC organizes and promotes mixed martial arts events, distributes related media content, and manages sponsorship, licensing, and consumer products. WWE produces professional wrestling programming and live events, including its flagship brands and premium events, while also generating revenue through media rights, sponsorships, licensing, merchandise, and digital content.

TKO serves audiences and commercial partners internationally through televised and streaming programming, live events, and licensed products.

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