TKO Group (NYSE:TKO) Receives "Buy" Rating from BTIG Research

Key Points

• BTIG Research reiterated its “Buy” rating on TKO Group and set a $237 price target, implying approximately 27.18% upside from the prior close.
• Analyst sentiment remains favorable, with 11 Buy ratings and six Hold ratings producing a consensus “Moderate Buy” rating and average price target of $233.53.
• TKO recently slightly exceeded quarterly earnings and revenue estimates, reporting $1.12 in EPS and $1.60 billion in revenue, while CEO Ariel Emanuel and insider Mark Shapiro together purchased about $4 million of stock.

TKO Group (NYSE:TKO - Get Free Report)'s stock had its "buy" rating reiterated by BTIG Research in a research note issued to investors on Wednesday,Benzinga reports. They currently have a $237.00 price objective on the stock. BTIG Research's price target indicates a potential upside of 27.18% from the company's previous close.

Several other research analysts have also weighed in on TKO. Roth Capital set a $228.00 target price on TKO Group in a report on Monday, May 4th. JPMorgan Chase & Co. dropped their price target on TKO Group from $225.00 to $222.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 21st. Guggenheim cut their price objective on TKO Group from $232.00 to $230.00 and set a "buy" rating on the stock in a report on Wednesday, July 15th. Zacks Research upgraded TKO Group from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Finally, Sanford C. Bernstein lowered their target price on TKO Group from $240.00 to $235.00 and set an "outperform" rating for the company in a research note on Tuesday. Eleven analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, TKO Group has a consensus rating of "Moderate Buy" and an average target price of $233.53.

TKO Group Stock Performance

Shares of TKO stock opened at $186.35 on Wednesday. The stock has a market cap of $36.18 billion, a PE ratio of 69.54 and a beta of 0.60. The stock has a 50-day moving average of $195.42 and a 200-day moving average of $198.06. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.34 and a quick ratio of 1.34. TKO Group has a one year low of $152.29 and a one year high of $226.94.

TKO Group (NYSE:TKO - Get Free Report) last released its quarterly earnings data 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 analyst estimates of $1.59 billion. During the same quarter last year, the firm earned $0.69 EPS. TKO Group's quarterly revenue was up 25.9% compared to the same quarter last year. As a group, sell-side analysts expect that TKO Group will post 4.94 earnings per share for the current year.

Insider Transactions at TKO Group

In other TKO Group news, insider Mark S. Shapiro acquired 10,807 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $185.05 per share, with a total value of $1,999,835.35. Following the completion of the transaction, the insider directly owned 129,207 shares in the company, valued at $23,909,755.35. This trade represents a 9.13% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ariel Emanuel acquired 10,805 shares of the business's stock in a transaction dated Wednesday, May 13th. The stock was acquired 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 owned 154,655 shares of the company's stock, valued at $28,625,093.95. This represents a 7.51% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have bought 24,308 shares of company stock worth $4,499,679 and have sold 51,775 shares worth $9,716,321. Corporate insiders own 64.30% of the company's stock.

Institutional Investors Weigh In On TKO Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Swiss Life Asset Management Ltd lifted its stake in TKO Group by 711.4% in the 4th quarter. Swiss Life Asset Management Ltd now owns 25,810 shares of the company's stock valued at $5,394,000 after purchasing an additional 22,629 shares during the last quarter. NFJ Investment Group LLC acquired a new position in shares of TKO Group during the 4th quarter worth approximately $3,969,000. Perpetual Ltd bought a new stake in TKO Group in the 4th quarter valued at $26,046,000. Ninety One SA Pty Ltd raised its stake in TKO Group by 86.2% in the 4th quarter. Ninety One SA Pty Ltd now owns 133,187 shares of the company's stock valued at $27,836,000 after acquiring an additional 61,657 shares during the period. Finally, Todd Asset Management LLC acquired a new stake in TKO Group during the 4th quarter valued at $26,150,000. 89.79% of the stock is owned by 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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