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

Key Points

• Wall Street sentiment is positive: TKO Group has an average analyst rating of “Moderate Buy” from 18 covering firms, with 11 buy ratings and a consensus 12-month target price of about $233.73.
• Recent earnings beat expectations: The company reported $1.12 EPS on $1.60 billion in revenue, topping estimates, and revenue rose 25.9% year over year.
• TKO raised its dividend: The latest quarterly dividend increased slightly to $0.79 per share from $0.78, translating to an annualized dividend of $3.16 and a yield of about 1.6%.

Shares of TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) have received an average recommendation of "Moderate Buy" from the eighteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Seven analysts have rated the stock with a hold recommendation and eleven have issued a buy recommendation on the company. The average 12 month target price among brokers that have covered the stock in the last year is $233.7333.

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

TKO Group Trading Down 0.4%

Shares of TKO opened at $193.68 on Monday. TKO Group has a 52-week low of $152.29 and a 52-week high of $226.94. The stock has a market cap of $37.60 billion, a PE ratio of 72.27 and a beta of 0.60. The firm's fifty day moving average is $196.22 and its two-hundred day moving average is $201.22. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.57.

TKO Group (NYSE:TKO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $1.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.11 by $0.01. TKO Group had a return on equity of 2.49% and a net margin of 4.47%.The business had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. During the same period in the prior year, the business earned $0.69 earnings per share. The business's revenue was up 25.9% compared to the same quarter last year. Research analysts forecast that TKO Group will post 4.94 earnings per share for the current fiscal year.

TKO Group Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a dividend of $0.79 per share. This is a boost from TKO Group's previous quarterly dividend of $0.78. This represents a $3.16 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Monday, June 15th. TKO Group's dividend payout ratio is currently 117.91%.

Insider Buying and Selling

In other news, Director Nick Khan sold 9,589 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $207.56, for a total value of $1,990,292.84. Following the sale, the director directly owned 81,511 shares in the company, valued at approximately $16,918,423.16. This trade represents a 10.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark S. Shapiro bought 10,807 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were bought at an average cost of $185.05 per share, with a total value of $1,999,835.35. Following the completion of the purchase, the insider directly owned 129,207 shares in the company, valued at $23,909,755.35. This represents a 9.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders acquired a total of 24,308 shares of company stock worth $4,499,679 over the last ninety days. Insiders own 64.30% of the company's stock.

Institutional Trading of TKO Group

Large investors have recently made changes to their positions in the company. Elyxium Wealth LLC purchased a new position in TKO Group in the fourth quarter worth approximately $27,000. Cornerstone Planning Group LLC increased its position in shares of TKO Group by 543.5% in the 1st quarter. Cornerstone Planning Group LLC now owns 148 shares of the company's stock valued at $28,000 after purchasing an additional 125 shares during the last quarter. Torren Management LLC acquired a new stake in shares of TKO Group in the 4th quarter valued at $32,000. Aventura Private Wealth LLC acquired a new stake in shares of TKO Group in the 4th quarter valued at $35,000. Finally, Clearstead Advisors LLC lifted its position in shares of TKO Group by 234.0% during the 4th quarter. Clearstead Advisors LLC now owns 177 shares of the company's stock worth $37,000 after purchasing an additional 124 shares during the last quarter. 89.79% of the stock is currently owned by hedge funds and other institutional investors.

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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