TKO Group (NYSE:TKO) Raised to "Hold" at Arete Research

Key Points

• TKO Group has been upgraded to a "hold" rating by Arete Research, with a consensus price target of $210.21 from various analysts.
• The company's stock recently opened at $188.98, showing strong growth with a **53.7% year-over-year increase** in revenue despite missing earnings expectations in its last quarterly report.
• TKO Group's Board of Directors approved a **$1 billion stock buyback program**, reflecting confidence in the stock's valuation and ownership levels among insiders at **61.30%**.

TKO Group (NYSE:TKO - Get Free Report) was upgraded by research analysts at Arete Research to a "hold" rating in a research report issued on Wednesday,Zacks.com reports.

A number of other analysts have also recently issued reports on the company. JPMorgan Chase & Co. boosted their price objective on TKO Group from $182.00 to $212.00 and gave the company an "overweight" rating in a research report on Thursday, August 21st. Bank of America upped their price target on TKO Group from $200.00 to $210.00 and gave the company a "buy" rating in a research report on Tuesday, August 12th. Roth Capital upped their price target on TKO Group from $208.00 to $210.00 and gave the company a "buy" rating in a research report on Tuesday, August 12th. BTIG Research assumed coverage on TKO Group in a research report on Monday, October 6th. They issued a "buy" rating and a $235.00 price target on the stock. Finally, Seaport Res Ptn upgraded TKO Group from a "hold" rating to a "strong-buy" rating in a research report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $210.21.

TKO Group Stock Up 0.6%

Shares of TKO stock opened at $188.98 on Wednesday. TKO Group has a 12 month low of $114.01 and a 12 month high of $212.49. The firm has a market cap of $37.47 billion, a PE ratio of 78.09 and a beta of 0.76. The stock has a 50 day moving average of $193.02 and a 200-day moving average of $173.42. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28.

TKO Group (NYSE:TKO - Get Free Report) last released 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 firm had revenue of $1.31 billion for 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 quarter in the prior year, the firm posted $0.72 earnings per share. On average, equities analysts predict that TKO Group will post 3.88 EPS for the current year.

TKO Group announced that its Board of Directors has approved a stock repurchase program on Monday, September 15th that allows the company to buyback $1.00 billion in outstanding 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 board 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 stock was sold at an average price of $197.82, for a total transaction of $1,883,048.58. Following the transaction, the director owned 128,023 shares of the company's stock, valued at $25,325,509.86. This represents a 6.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Peter C. B. Bynoe purchased 740 shares of the business's stock in a transaction dated Tuesday, September 16th. The shares were purchased at an average cost of $203.00 per share, for a total transaction of $150,220.00. Following the purchase, the director directly owned 5,187 shares of the company's stock, valued at $1,052,961. This trade represents a 16.64% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold 73,725 shares of company stock worth $12,966,373 in the last 90 days. Company insiders own 61.30% of the company's stock.

Hedge Funds Weigh In On TKO Group

Several hedge funds have recently added to or reduced their stakes in TKO. Farther Finance Advisors LLC lifted its stake in TKO Group by 129.8% in the first quarter. Farther Finance Advisors LLC now owns 216 shares of the company's stock valued at $33,000 after buying an additional 122 shares during the period. GAMMA Investing LLC raised its position in shares of TKO Group by 30.4% during the first quarter. GAMMA Investing LLC now owns 1,774 shares of the company's stock worth $271,000 after purchasing an additional 414 shares during the period. Janney Montgomery Scott LLC raised its position in shares of TKO Group by 19.9% during the first quarter. Janney Montgomery Scott LLC now owns 11,637 shares of the company's stock worth $1,778,000 after purchasing an additional 1,929 shares during the period. QRG Capital Management Inc. acquired a new stake in shares of TKO Group during the first quarter worth about $230,000. Finally, State of Alaska Department of Revenue raised its position in shares of TKO Group by 2.8% during the first quarter. State of Alaska Department of Revenue now owns 7,801 shares of the company's stock worth $1,192,000 after purchasing an additional 210 shares during the period. Institutional investors and hedge funds own 89.79% of the company's stock.

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.

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