Seaport Res Ptn Boosts Earnings Estimates for TKO Group

Key Points

• Seaport Res Ptn has raised its FY2027 earnings estimate for TKO Group to $4.03 per share, increasing from their previous expectation of $3.97.
• TKO Group has also announced a quarterly dividend increase to $0.76, up from $0.38, reflecting a positive change in its shareholder returns.
• Insider trading activity shows a mix of selling and buying, with a significant sale by director Nick Khan, while another director, Peter C. B. Bynoe, increased their stake in the company.

TKO Group Holdings, Inc. (NYSE:TKO - Free Report) - Investment analysts at Seaport Res Ptn boosted their FY2027 earnings estimates for shares of TKO Group in a report released on Wednesday, October 15th. Seaport Res Ptn analyst D. Joyce now expects that the company will post earnings of $4.03 per share for the year, up from their previous forecast of $3.97. Seaport Res Ptn has a "Strong-Buy" rating on the stock. The consensus estimate for TKO Group's current full-year earnings is $3.88 per share. Seaport Res Ptn also issued estimates for TKO Group's FY2028 earnings at $4.99 EPS and FY2029 earnings at $5.38 EPS.

Several other equities analysts have also recently commented on the stock. Zacks Research upgraded shares of TKO Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 6th. Bank of America lifted their price target on shares of TKO Group from $200.00 to $210.00 and gave the company a "buy" rating in a report on Tuesday, August 12th. Morgan Stanley lifted their price target on shares of TKO Group from $165.00 to $205.00 and gave the company an "equal weight" rating in a report on Thursday, September 25th. BTIG Research initiated coverage on shares of TKO Group in a report on Monday, October 6th. They set a "buy" rating and a $235.00 price target on the stock. Finally, Sanford C. Bernstein boosted their target price on shares of TKO Group from $190.00 to $230.00 and gave the stock an "outperform" rating in a report on Monday, October 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $210.21.

TKO Group Price Performance

Shares of NYSE:TKO opened at $188.26 on Friday. The firm has a 50 day moving average of $192.50 and a 200-day moving average of $173.17. The stock has a market capitalization of $37.33 billion, a PE ratio of 77.79 and a beta of 0.76. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.28. TKO Group has a 12 month low of $114.01 and a 12 month high of $212.49.

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

TKO Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th were paid a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Monday, September 15th. This is a positive change from TKO Group's previous quarterly dividend of $0.38. TKO Group's dividend payout ratio (DPR) is currently 125.62%.

TKO Group declared that its Board of Directors has authorized a share repurchase program on Monday, September 15th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the company to buy up to 2.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at TKO Group

In other news, Director Nick Khan sold 9,519 shares of the company's stock in a transaction on Friday, October 3rd. The shares were sold at an average price of $197.82, for a total value of $1,883,048.58. Following the completion of the sale, the director owned 128,023 shares in the company, valued at $25,325,509.86. This represents a 6.92% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Peter C. B. Bynoe bought 740 shares of TKO Group stock in a transaction dated Tuesday, September 16th. The stock was purchased at an average price of $203.00 per share, with a total value of $150,220.00. Following the purchase, the director owned 5,187 shares in the company, valued at approximately $1,052,961. This represents a 16.64% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders sold 73,725 shares of company stock valued at $12,966,373. Company insiders own 61.30% of the company's stock.

Institutional Trading of TKO Group

Several institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. grew its stake in shares of TKO Group by 19.4% in the 1st 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 grew its position 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 valued at $882,459,000 after buying an additional 611,233 shares during the period. Massachusetts Financial Services Co. MA boosted its position 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 purchasing an additional 40,237 shares during the period. Invesco Ltd. boosted its position 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 purchasing an additional 383,325 shares during the period. Finally, Price T Rowe Associates Inc. MD boosted its position in TKO Group by 242.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 1,496,462 shares of the company's stock worth $228,675,000 after purchasing an additional 1,059,636 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.

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