TKO Group (NYSE:TKO) Sets New 12-Month High on Analyst Upgrade

Key Points

• TKO Group Holdings reached a new 52-week high after Bank of America increased its price target from $200.00 to $210.00, maintaining a buy rating on the stock.
• Insider trading activity included Director Peter C. B. Bynoe increasing his stake by acquiring 980 shares, while Director Nick Khan sold over 45,000 shares.
• TKO Group's quarterly earnings report revealed an EPS of $1.17, missing the estimated $1.23, but the company's revenue increased by 53.7% year-over-year to $1.31 billion.

Shares of TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) hit a new 52-week high on Tuesday after Bank of America raised their price target on the stock from $200.00 to $210.00. Bank of America currently has a buy rating on the stock. TKO Group traded as high as $182.84 and last traded at $179.16, with a volume of 71901 shares traded. The stock had previously closed at $180.00.

Several other analysts also recently weighed in on TKO. UBS Group upped 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. Susquehanna began coverage on shares of TKO Group in a report on Monday, April 28th. They set a "positive" rating and a $180.00 price target for the company. Northcoast Research downgraded shares of TKO Group from a "buy" rating to a "neutral" rating in a report on Thursday, July 10th. JPMorgan Chase & Co. upped their price target on shares of TKO Group from $158.00 to $182.00 and gave the stock an "overweight" rating in a report on Wednesday, May 21st. Finally, The Goldman Sachs Group lifted their price target on TKO Group from $170.00 to $188.00 and gave the company a "buy" rating in a research note on Monday, May 12th. Two analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $182.00.

Insider Activity

In related news, Director Peter C. B. Bynoe acquired 980 shares of the stock in a transaction on Thursday, June 5th. The stock was acquired at an average price of $169.59 per share, for a total transaction of $166,198.20. Following the completion of the purchase, the director owned 2,747 shares of the company's stock, valued at $465,863.73. This represents a 55.46% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Nick Khan sold 45,168 shares of TKO Group stock in a transaction 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 transaction, the director owned 156,494 shares of the company's stock, valued at $26,732,305.08. The trade was a 22.40% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 73,725 shares of company stock worth $12,501,561 in the last quarter. 53.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of TKO Group by 19.4% in the first quarter. Vanguard Group Inc. now owns 7,976,904 shares of the company's stock worth $1,218,951,000 after purchasing an additional 1,295,817 shares during the last quarter. Invesco Ltd. raised its stake in shares of TKO Group by 569.7% in the first quarter. Invesco Ltd. now owns 1,423,052 shares of the company's stock worth $217,457,000 after purchasing an additional 1,210,563 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in shares of TKO Group by 242.6% in the first quarter. Price T Rowe Associates Inc. MD now owns 1,496,462 shares of the company's stock worth $228,675,000 after purchasing an additional 1,059,636 shares during the last quarter. Ninety One UK Ltd raised its stake in shares of TKO Group by 14.4% in the second quarter. Ninety One UK Ltd now owns 4,850,006 shares of the company's stock worth $882,459,000 after purchasing an additional 611,233 shares during the last quarter. Finally, Ameriprise Financial Inc. raised its stake in shares of TKO Group by 57.3% in the fourth quarter. Ameriprise Financial Inc. now owns 1,678,258 shares of the company's stock worth $238,574,000 after purchasing an additional 611,178 shares during the last quarter. Hedge funds and other institutional investors own 89.79% of the company's stock.

TKO Group Stock Up 0.2%

The company has a 50 day moving average price of $170.16 and a two-hundred day moving average price of $160.94. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.30 and a quick ratio of 1.30. The stock has a market cap of $35.70 billion, a PE ratio of 74.46 and a beta of 0.72.

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

TKO Group Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 13th were issued a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Friday, June 13th. TKO Group's payout ratio is currently 62.81%.

TKO Group Company Profile

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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