TKO Group (NYSE:TKO) Reaches New 52-Week Low - Here's Why

Key Points

• TKO Group shares fell to a new 52-week low of $174.58, below the stock’s 50-day and 200-day moving averages. The company has a market capitalization of approximately $33.9 billion and a P/E ratio of 62.92.
• Despite the decline, analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $237.50. Recent targets range from $230 to $240.
• TKO reported quarterly revenue of $1.55 billion, up 18.2% year over year, but EPS of $1.34 missed estimates of $1.41. The company declared a quarterly dividend of $0.79, while insiders sold more than $23 million of shares over the past three months.

TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report)'s share price hit a new 52-week low during trading on Wednesday. The stock traded as low as $174.58 and last traded at $175.82, with a volume of 45183 shares changing hands. The stock had previously closed at $177.58.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. Benchmark reissued a "hold" rating on shares of TKO Group in a research report on Tuesday, August 4th. Roth Capital reiterated a "buy" rating and set a $230.00 price objective on shares of TKO Group in a research note on Tuesday, August 4th. Guggenheim boosted their price objective on shares of TKO Group from $230.00 to $235.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Morgan Stanley upped their target price on TKO Group from $225.00 to $230.00 and gave the company an "overweight" rating in a research report on Tuesday, August 4th. Finally, Sanford C. Bernstein raised their target price on TKO Group from $235.00 to $240.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 16th. Ten research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, TKO Group currently has an average rating of "Moderate Buy" and an average price target of $237.50.

TKO Group Stock Performance

The firm has a fifty day moving average of $188.54 and a 200 day moving average of $192.37. 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 stock has a market capitalization of $33.93 billion, a price-to-earnings ratio of 62.92 and a beta of 0.62.

TKO Group (NYSE:TKO - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The company reported $1.34 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.41 by ($0.07). The company had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.54 billion. TKO Group had a net margin of 4.33% and a return on equity of 2.67%. The company's revenue was up 18.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.17 earnings per share. On average, sell-side analysts anticipate that TKO Group Holdings, Inc. will post 5.18 earnings per share for the current fiscal year.

TKO Group Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th will be paid a $0.79 dividend. This represents a $3.16 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Tuesday, September 15th. TKO Group's payout ratio is currently 110.88%.

Insider Activity

In other TKO Group news, CFO Andrew M. Schleimer sold 9,942 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total value of $1,932,625.38. Following the completion of the transaction, the chief financial officer owned 38,051 shares in the company, valued at approximately $7,396,733.89. This represents a 20.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ariel Emanuel sold 24,702 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total transaction of $4,801,821.78. Following the sale, the chief executive officer directly owned 174,334 shares in the company, valued at approximately $33,888,786.26. The trade was a 12.41% decrease in their ownership of the stock. 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 sold 120,404 shares of company stock valued at $23,073,938. 64.30% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On TKO Group

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

TKO Group Company Profile

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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