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

Key Points

• TKO Group has a consensus analyst rating of “Moderate Buy”, based on coverage from 18 firms: 11 rate it a buy and 7 a hold. The average 12-month price target is about $233.73.
• The company recently reported quarterly earnings that beat expectations, with EPS of $1.12 versus $1.11 expected and revenue of $1.60 billion versus $1.59 billion expected. Revenue rose 25.9% year over year.
• CEO Ariel Emanuel and CFO Andrew M. Schleimer both bought shares in mid-May, signaling insider confidence. The stock also pays a quarterly dividend of $0.78 per share, though its payout ratio is currently high at 116.42%.

Shares of TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) have earned an average recommendation of "Moderate Buy" from the eighteen research firms that are covering the firm, MarketBeat Ratings reports. Seven investment analysts have rated the stock with a hold recommendation and eleven have given a buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $233.7333.

Several research analysts have weighed in on TKO shares. Zacks Research upgraded shares of TKO Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Sanford C. Bernstein decreased their price target on shares of TKO Group from $250.00 to $240.00 and set an "outperform" rating on the stock in a research report on Monday, April 27th. Citigroup downgraded shares of TKO Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. BTIG Research restated a "buy" rating and set a $237.00 price objective on shares of TKO Group in a research report on Thursday, May 7th. Finally, Susquehanna restated a "positive" rating and set a $251.00 price objective on shares of TKO Group in a research report on Monday, January 19th.

TKO Group Stock Down 1.4%

TKO opened at $189.88 on Friday. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.57. TKO Group has a 1-year low of $152.29 and a 1-year high of $226.94. The company has a market capitalization of $36.86 billion, a PE ratio of 70.85 and a beta of 0.57. The firm's 50 day simple moving average is $193.36 and its two-hundred day simple moving average is $198.61.

TKO Group (NYSE:TKO - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The company reported $1.12 earnings per share for the quarter, topping the consensus estimate of $1.11 by $0.01. TKO Group had a net margin of 4.47% and a return on equity of 2.49%. The business had revenue of $1.60 billion for the quarter, compared to the consensus estimate of $1.59 billion. During the same period last year, the firm earned $0.69 earnings per share. The company's quarterly revenue was up 25.9% on a year-over-year basis. As a group, equities analysts forecast that TKO Group will post 5 EPS for the current year.

TKO Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were given a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Monday, March 16th. TKO Group's dividend payout ratio (DPR) is presently 116.42%.

Insider Activity

In other news, CEO Ariel Emanuel acquired 10,805 shares of the firm's stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average cost of $185.09 per share, for a total transaction of $1,999,897.45. Following the transaction, the chief executive officer directly owned 154,655 shares of the company's stock, valued at approximately $28,625,093.95. This trade represents a 7.51% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Andrew M. Schleimer acquired 2,696 shares of the firm's stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average price of $185.44 per share, for a total transaction of $499,946.24. Following the completion of the transaction, the chief financial officer directly owned 30,240 shares in the company, valued at approximately $5,607,705.60. This trade represents a 9.79% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders purchased 24,308 shares of company stock worth $4,499,679 and sold 30,656 shares worth $6,201,927. Company insiders own 61.30% of the company's stock.

Institutional Trading of TKO Group

Several institutional investors and hedge funds have recently modified their holdings of TKO. Elyxium Wealth LLC bought a new stake in shares of TKO Group during the 4th quarter valued at $27,000. Cornerstone Planning Group LLC grew its stake in TKO Group by 543.5% during the first quarter. Cornerstone Planning Group LLC now owns 148 shares of the company's stock valued at $28,000 after acquiring an additional 125 shares in the last quarter. Torren Management LLC purchased a new position in TKO Group during the fourth quarter valued at $32,000. CYBER HORNET ETFs LLC purchased a new position in TKO Group during the second quarter valued at $34,000. Finally, Aventura Private Wealth LLC purchased a new position in TKO Group during the fourth quarter valued at $35,000. 89.79% of the stock is currently owned by institutional investors.

About TKO Group

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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