TKO Group (NYSE:TKO) Stock Rating Upgraded by Zacks Research

Key Points

• TKO Group has been upgraded from a "strong sell" to a "hold" rating by Zacks Research, reflecting a more stable outlook for the company.
• Multiple analysts have provided positive ratings for TKO Group, with price targets increasing significantly, such as Bank of America's lift from $200 to $210 and Citigroup's increase to $225.
• Despite reporting earnings per share of $1.17, which was below the expected $1.23, TKO Group's revenue for the quarter rose 53.7% to $1.31 billion year-over-year.

TKO Group (NYSE:TKO - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Other research analysts also recently issued reports about the company. JPMorgan Chase & Co. raised their price objective on TKO Group from $182.00 to $212.00 and gave the company an "overweight" rating in a research note on Thursday, August 21st. UBS Group lifted their price objective on TKO Group from $195.00 to $200.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Citigroup increased their price target on shares of TKO Group from $200.00 to $225.00 and gave the company a "buy" rating in a research report on Friday, August 15th. Sanford C. Bernstein assumed coverage on shares of TKO Group in a research report on Wednesday, June 4th. They issued an "outperform" rating and a $190.00 price target on the stock. Finally, Morgan Stanley reiterated an "outperform" rating on shares of TKO Group in a research report on Sunday, August 10th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $192.21.

TKO Group Stock Performance

Shares of TKO traded up $6.52 during trading hours on Tuesday, reaching $200.52. 1,095,904 shares of the company's stock traded hands, compared to its average volume of 1,243,920. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.30 and a quick ratio of 1.30. TKO Group has a twelve month low of $113.16 and a twelve month high of $200.71. The firm has a market capitalization of $39.76 billion, a price-to-earnings ratio of 82.86 and a beta of 0.78. The business's fifty day simple moving average is $176.78 and its two-hundred day simple moving average is $163.88.

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

Insider Buying and Selling at TKO Group

In other news, Director Nick Khan sold 9,519 shares of the business's stock in a transaction dated Wednesday, September 3rd. The stock was sold at an average price of $186.43, for a total transaction of $1,774,627.17. Following the sale, the director directly owned 137,456 shares in the company, valued at approximately $25,625,922.08. The trade was a 6.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders sold 73,725 shares of company stock worth $12,767,807 in the last quarter. Insiders own 53.80% of the company's stock.

Hedge Funds Weigh In On TKO Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Osaic Holdings Inc. lifted its stake in shares of TKO Group by 8.5% in the second quarter. Osaic Holdings Inc. now owns 13,364 shares of the company's stock worth $2,410,000 after acquiring an additional 1,049 shares during the period. Munro Partners acquired a new position in shares of TKO Group during the second quarter worth approximately $65,670,000. MRP Capital Investments LLC raised its position in shares of TKO Group by 17.8% during the second quarter. MRP Capital Investments LLC now owns 7,372 shares of the company's stock worth $1,341,000 after purchasing an additional 1,113 shares during the period. Advisory Services Network LLC acquired a new position in shares of TKO Group during the second quarter worth approximately $460,000. Finally, State of Wyoming bought a new stake in TKO Group during the second quarter worth $724,000. 89.79% of the stock is owned by institutional investors and hedge funds.

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.