Roth Capital Brokers Reduce Earnings Estimates for TKO Group

Key Points

• Roth Capital downgraded TKO Group's Q3 2025 earnings estimate from $0.27 to $0.22 per share, while the full-year earnings consensus stands at $3.88 per share.
• Despite a revenue increase of 53.7% year-over-year, TKO Group's recent earnings report showed an EPS of $1.17, which missed the consensus estimate by $0.06.
• Institutional investors have increased their stakes in TKO Group, with 89.79% of the stock now owned by such investors, signaling confidence in the company's prospects.

TKO Group Holdings, Inc. (NYSE:TKO - Free Report) - Analysts at Roth Capital dropped their Q3 2025 earnings estimates for TKO Group in a report released on Thursday, August 7th. Roth Capital analyst E. Handler now anticipates that the company will post earnings of $0.22 per share for the quarter, down from their previous forecast of $0.27. Roth Capital currently has a "Buy" rating and a $210.00 price target on the stock. The consensus estimate for TKO Group's current full-year earnings is $3.88 per share. Roth Capital also issued estimates for TKO Group's FY2025 earnings at $2.20 EPS.

TKO Group (NYSE:TKO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $1.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.23 by ($0.06). TKO Group had a net margin of 5.40% and a return on equity of 2.82%. The company had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.23 billion. During the same quarter in the prior year, the firm earned $0.72 EPS. TKO Group's quarterly revenue was up 53.7% compared to the same quarter last year.

A number of other equities research analysts have also recently weighed in on the stock. Sanford C. Bernstein assumed coverage on shares of TKO Group in a report on Wednesday, June 4th. They issued an "outperform" rating and a $190.00 price objective on the stock. Susquehanna assumed coverage on shares of TKO Group in a report on Monday, April 28th. They issued a "positive" rating and a $180.00 price objective on the stock. Guggenheim upped their price objective on shares of TKO Group from $200.00 to $205.00 and gave the stock a "buy" rating in a report on Wednesday. Northcoast Research cut shares of TKO Group from a "buy" rating to a "neutral" rating in a report on Thursday, July 10th. Finally, Morgan Stanley restated an "outperform" rating on shares of TKO Group in a report on Sunday. Two research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $183.15.

TKO Group Trading Up 2.7%

Shares of NYSE TKO traded up $4.98 during midday trading on Monday, hitting $191.00. 796,992 shares of the company traded hands, compared to its average volume of 1,296,842. The firm has a market cap of $37.80 billion, a P/E ratio of 78.92 and a beta of 0.72. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.30 and a current ratio of 1.30. TKO Group has a 12-month low of $113.16 and a 12-month high of $191.29. The stock has a 50-day moving average price of $170.62 and a 200 day moving average price of $161.11.

TKO Group Announces Dividend

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

Insider Transactions at TKO Group

In related news, Director Peter C. B. Bynoe acquired 980 shares of the stock in a transaction that occurred on Thursday, June 5th. The shares were bought at an average price of $169.59 per share, for a total transaction of $166,198.20. Following the completion of the transaction, the director directly owned 2,747 shares in the company, valued at approximately $465,863.73. This trade represents a 55.46% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, major shareholder Lake West Voteco L.L.C Silver acquired 1,579,080 shares of the stock in a transaction that occurred on Tuesday, June 3rd. The shares were bought at an average price of $158.32 per share, for a total transaction of $249,999,945.60. Following the transaction, the insider owned 4,158,517 shares of the company's stock, valued at $658,376,411.44. This trade represents a 61.22% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 73,725 shares of company stock worth $12,501,561. Corporate insiders own 53.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TKO. Sentry Investment Management LLC bought a new position in TKO Group during the first quarter valued at approximately $25,000. Hemington Wealth Management raised its position in TKO Group by 425.0% in the first quarter. Hemington Wealth Management now owns 168 shares of the company's stock worth $25,000 after acquiring an additional 136 shares during the period. Whittier Trust Co. raised its position in TKO Group by 350.0% in the second quarter. Whittier Trust Co. now owns 135 shares of the company's stock worth $25,000 after acquiring an additional 105 shares during the period. N.E.W. Advisory Services LLC bought a new position in TKO Group in the first quarter worth approximately $26,000. Finally, Golden State Wealth Management LLC raised its position in TKO Group by 840.0% in the second quarter. Golden State Wealth Management LLC now owns 141 shares of the company's stock worth $26,000 after acquiring an additional 126 shares during the period. Institutional investors own 89.79% of the company's stock.

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.