TKO Group Holdings, Inc. (NYSE:TKO) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts rate TKO Group a “Moderate Buy”: Eleven of 17 analysts recommend buying the stock, while six rate it a hold. The average 12-month price target is $233.53, above the reported share price of $183.53.
• TKO’s latest quarterly results slightly exceeded expectations, with EPS of $1.12 and revenue of $1.60 billion; revenue increased 25.9% year over year.
• The company raised its quarterly dividend to $0.79 per share, equivalent to a $3.16 annualized payout and a 1.7% yield. Insiders also made roughly $4.5 million in purchases over the past three months, although insider ownership remains high at 64.3%.

TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the seventeen research firms that are covering the stock, Marketbeat Ratings reports. Six analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $233.5333.

A number of equities analysts recently weighed in on TKO shares. Citigroup lowered TKO Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. BTIG Research reaffirmed a "buy" rating and set a $237.00 price objective on shares of TKO Group in a research note on Wednesday. Weiss Ratings raised shares of TKO Group from a "hold (c-)" rating to a "hold (c+)" rating in a research report on Thursday, May 7th. Wall Street Zen upgraded shares of TKO Group from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. Finally, Zacks Research upgraded shares of TKO Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th.

TKO Group Price Performance

Shares of NYSE:TKO opened at $183.53 on Friday. The company has a market capitalization of $35.63 billion, a PE ratio of 68.48 and a beta of 0.60. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.34 and a current ratio of 1.34. The stock has a fifty day moving average of $195.12 and a 200-day moving average of $197.85. TKO Group has a one year low of $152.29 and a one year high of $226.94.

TKO Group (NYSE:TKO - Get Free Report) last issued its earnings results on Wednesday, May 6th. The company reported $1.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.11 by $0.01. The business had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.59 billion. TKO Group had a return on equity of 2.49% and a net margin of 4.47%.The company's quarterly revenue was up 25.9% on a year-over-year basis. During the same period in the previous year, the firm posted $0.69 EPS. As a group, equities analysts anticipate that TKO Group will post 4.92 EPS for the current fiscal year.

TKO Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were paid a dividend of $0.79 per share. This is an increase from TKO Group's previous quarterly dividend of $0.78. The ex-dividend date of this dividend was Monday, June 15th. This represents a $3.16 annualized dividend and a yield of 1.7%. TKO Group's dividend payout ratio (DPR) is presently 117.91%.

Insiders Place Their Bets

In other TKO Group news, insider Mark S. Shapiro purchased 10,807 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average cost of $185.05 per share, with a total value of $1,999,835.35. Following the completion of the transaction, the insider owned 129,207 shares of the company's stock, valued at approximately $23,909,755.35. This represents a 9.13% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ariel Emanuel acquired 10,805 shares of TKO Group stock in a transaction that occurred on Wednesday, May 13th. The stock was acquired at an average cost of $185.09 per share, with a total value of $1,999,897.45. Following the completion of the purchase, the chief executive officer owned 154,655 shares in the company, valued at approximately $28,625,093.95. This represents a 7.51% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have purchased 24,308 shares of company stock worth $4,499,679 and have sold 51,775 shares worth $9,716,321. Corporate insiders own 64.30% of the company's stock.

Institutional Investors Weigh In On TKO Group

Institutional investors have recently bought and sold shares of the business. Elyxium Wealth LLC acquired a new position in shares of TKO Group in the 4th quarter valued at about $27,000. Cornerstone Planning Group LLC lifted its position in shares of TKO Group by 543.5% in the first quarter. Cornerstone Planning Group LLC now owns 148 shares of the company's stock worth $28,000 after purchasing an additional 125 shares in the last quarter. Torren Management LLC acquired a new stake in shares of TKO Group during the fourth quarter worth approximately $32,000. CYBER HORNET ETFs LLC acquired a new stake in shares of TKO Group during the second quarter worth approximately $34,000. Finally, MUFG Securities EMEA plc purchased a new position in TKO Group during the second quarter valued at approximately $36,000. 89.79% of the stock is currently owned by institutional investors and hedge funds.

TKO Group Company Profile

TKO Group Holdings NYSE: TKO is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.

TKO's core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.

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