TKO Group (NYSE:TKO) Shares Break Above 50-Day Moving Average - Here's What Happened

Key Points

• TKO Group shares broke above their 50-day moving average, reaching $186.70 and last trading near $185.12, up 2.5%. The stock remains below its 200-day moving average of $193.43.
• Analysts remain broadly optimistic, with 14 Buy ratings and five Holds producing a “Moderate Buy” consensus and an average price target of $228.65, despite recent target-price reductions from Guggenheim and Goldman Sachs.
• TKO reported quarterly revenue of $1.55 billion, up 18.2% year over year, but earnings per share of $1.34 fell short of the $1.41 consensus estimate. The company also pays a $0.79 quarterly dividend, although its 110.88% payout ratio exceeds reported earnings.

TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report)'s stock price crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $182.63 and traded as high as $186.70. TKO Group shares last traded at $185.1210, with a volume of 1,065,169 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on TKO. Guggenheim reduced their target price on shares of TKO Group from $235.00 to $228.00 and set a "buy" rating on the stock in a research note on Tuesday, October 20th. Weiss Ratings reiterated a "hold (c+)" rating on shares of TKO Group in a research report on Tuesday, August 4th. BTIG Research reissued a "buy" rating and set a $237.00 price target on shares of TKO Group in a research note on Wednesday, October 21st. The Goldman Sachs Group cut their price objective on shares of TKO Group from $220.00 to $215.00 and set a "buy" rating on the stock in a report on Tuesday, October 27th. Finally, Seaport Research Partners reaffirmed a "buy" rating on shares of TKO Group in a research note on Friday, October 9th. Fourteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $228.65.

TKO Group Trading Up 2.5%

The company has a market capitalization of $35.04 billion, a P/E ratio of 64.95 and a beta of 0.67. The business has a 50 day moving average price of $182.63 and a 200 day moving average price of $193.43. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.58.

TKO Group (NYSE:TKO - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The company reported $1.34 earnings per share for the quarter, missing the consensus estimate of $1.41 by ($0.07). The firm had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.54 billion. TKO Group had a return on equity of 2.67% and a net margin of 4.33%. The firm's revenue was up 18.2% compared to the same quarter last year. During the same period in the previous year, the business earned $1.17 EPS. Analysts anticipate that TKO Group Holdings, Inc. will post 4.43 EPS for the current year.

TKO Group Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were paid a $0.79 dividend. This represents a $3.16 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Tuesday, September 15th. TKO Group's dividend payout ratio is presently 110.88%.

Insider Activity

In other news, insider Mark S. Shapiro sold 19,120 shares of TKO Group stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $3,716,736.80. Following the transaction, the insider directly owned 147,071 shares of the company's stock, valued at $28,589,131.69. This trade 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 through this hyperlink. 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 business's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $4,801,821.78. Following the completion of the transaction, the chief executive officer directly owned 174,334 shares of the company's stock, valued at $33,888,786.26. This trade represents a 12.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 97,325 shares of company stock valued at $18,798,012. 64.30% of the stock is currently owned by company insiders.

Institutional Trading of TKO Group

Hedge funds have recently added to or reduced their stakes in the business. CenterBook Partners LP lifted its stake in TKO Group by 235.8% in the third quarter. CenterBook Partners LP now owns 111,589 shares of the company's stock valued at $20,055,000 after buying an additional 78,359 shares in the last quarter. Heritage Family Offices LLP acquired a new position in shares of TKO Group in the third quarter valued at approximately $44,000. Argonautica Private Wealth Management Inc. increased its position in shares of TKO Group by 12.2% during the third quarter. Argonautica Private Wealth Management Inc. now owns 2,944 shares of the company's stock worth $529,000 after acquiring an additional 320 shares in the last quarter. Inscription Capital LLC bought a new stake in shares of TKO Group during the third quarter worth $226,000. Finally, Commonwealth Equity Services LLC increased its position in shares of TKO Group by 213.3% during the third quarter. Commonwealth Equity Services LLC now owns 23,688 shares of the company's stock worth $4,257,000 after acquiring an additional 16,126 shares in the last quarter. Institutional investors and hedge funds own 89.79% of the company's stock.

About TKO Group

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates UFC and WWE, two global combat-sports and sports-entertainment brands. UFC promotes mixed martial arts events, while WWE produces live and televised professional wrestling programming featuring its roster of performers, storylines and branded events.

In addition to its core properties, TKO provides related media, licensing, sponsorship, live-event and consumer-products opportunities. The company's businesses serve audiences internationally through live events, broadcast and streaming distribution, digital content, merchandise and other commercial partnerships.

TKO was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings.

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