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

Key Points

• TKO Group Holdings, Inc. has received a consensus rating of “Moderate Buy” from analysts, with an average price target of $201.14 among twenty brokerages.
• The company recently increased its quarterly dividend to $0.76 per share, up from $0.38, resulting in an annualized dividend yield of 1.5%.
• Insider activity revealed that Director Nick Khan sold 45,168 shares for approximately $7.7 million, representing a 22.40% decrease in his stake.

TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty brokerages that are currently covering the stock, MarketBeat reports. Six investment analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $201.1429.

A number of brokerages have recently weighed in on TKO. Weiss Ratings reaffirmed a "hold (c)" rating on shares of TKO Group in a report on Saturday, September 27th. Robert W. Baird upped their price target on shares of TKO Group from $225.00 to $250.00 and gave the stock an "outperform" rating in a report on Tuesday, September 16th. Zacks Research raised shares of TKO Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 2nd. Roth Capital upped their price target on shares of TKO Group from $208.00 to $210.00 and gave the stock a "buy" rating in a report on Tuesday, August 12th. Finally, Baird R W raised shares of TKO Group to a "strong-buy" rating in a report on Friday, September 5th.

Insider Activity at TKO Group

In related news, Director Nick Khan sold 45,168 shares of the stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $170.82, for a total value of $7,715,597.76. Following the completion of the transaction, the director owned 156,494 shares of the company's stock, valued at $26,732,305.08. This represents a 22.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Peter C. B. Bynoe acquired 740 shares of the company's stock in a transaction that occurred on Tuesday, September 16th. The stock was bought at an average cost 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 $1,052,961. The trade was a 16.64% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last three months, insiders sold 64,206 shares of company stock valued at $11,083,325. 61.30% of the stock is owned by insiders.

Hedge Funds Weigh In On TKO Group

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sentry Investment Management LLC bought a new position in TKO Group in the 1st quarter valued at approximately $25,000. Hemington Wealth Management lifted its stake in TKO Group by 425.0% in the 1st quarter. Hemington Wealth Management now owns 168 shares of the company's stock valued at $25,000 after purchasing an additional 136 shares during the last quarter. Whittier Trust Co. lifted its stake in TKO Group by 350.0% in the 2nd quarter. Whittier Trust Co. now owns 135 shares of the company's stock valued at $25,000 after purchasing an additional 105 shares during the last quarter. N.E.W. Advisory Services LLC acquired a new position in TKO Group in the 1st quarter valued at approximately $26,000. Finally, Golden State Wealth Management LLC increased its position in TKO Group by 840.0% in the 2nd quarter. Golden State Wealth Management LLC now owns 141 shares of the company's stock valued at $26,000 after acquiring an additional 126 shares during the period. Institutional investors own 89.79% of the company's stock.

TKO Group Stock Performance

NYSE TKO opened at $197.32 on Friday. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28. The company has a market capitalization of $39.13 billion, a P/E ratio of 81.54 and a beta of 0.76. TKO Group has a 12-month low of $114.01 and a 12-month high of $212.49. The firm has a 50-day moving average price of $187.82 and a two-hundred day moving average price of $170.73.

TKO Group (NYSE:TKO - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $1.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.23 by ($0.06). The business had revenue of $1.31 billion during the quarter, compared to the consensus estimate of $1.23 billion. TKO Group had a net margin of 5.40% and a return on equity of 2.82%. The business's revenue for the quarter was up 53.7% on a year-over-year basis. During the same period in the prior year, the firm earned $0.72 EPS. Analysts anticipate that TKO Group will post 3.88 earnings per share for the current year.

TKO Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 15th were issued a dividend of $0.76 per share. This is a boost from TKO Group's previous quarterly dividend of $0.38. The ex-dividend date of this dividend was Monday, September 15th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 1.5%. TKO Group's payout ratio is currently 125.62%.

TKO Group announced that its Board of Directors has authorized a share buyback program on Monday, September 15th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to reacquire up to 2.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's management believes its stock is undervalued.

About TKO Group

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.