TKO Group (NYSE:TKO) Stock Price Expected to Rise, Robert W. Baird Analyst Says

Key Points

• Robert W. Baird has increased TKO Group's target price from $225.00 to $250.00, indicating a potential upside of 23.28% from the stock's previous close.
• The company announced a $1 billion share repurchase plan, typically signaling management's belief that its shares are undervalued.
• TKO Group recently reported earnings of $1.17 per share, falling short of analysts' expectations, but its revenue showed a significant year-over-year increase of 53.7%.

TKO Group (NYSE:TKO - Get Free Report) had its target price boosted by equities research analysts at Robert W. Baird from $225.00 to $250.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Robert W. Baird's price target suggests a potential upside of 23.28% from the stock's previous close.

TKO has been the subject of several other research reports. Roth Capital raised their target price on TKO Group from $208.00 to $210.00 and gave the stock a "buy" rating in a research report on Tuesday, August 12th. Seaport Res Ptn cut TKO Group from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 8th. Northcoast Research cut TKO Group from a "buy" rating to a "neutral" rating in a research report on Thursday, July 10th. Zacks Research raised TKO Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 2nd. Finally, JPMorgan Chase & Co. boosted their price target on TKO Group from $182.00 to $212.00 and gave the stock an "overweight" rating in a research report on Thursday, August 21st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $194.00.

TKO Group Stock Performance

Shares of NYSE TKO opened at $202.79 on Tuesday. 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 stock has a market capitalization of $40.21 billion, a price-to-earnings ratio of 84.05 and a beta of 0.78. The stock's fifty day simple moving average is $179.51 and its 200 day simple moving average is $165.73. TKO Group has a 52-week low of $114.01 and a 52-week high of $212.49.

TKO Group (NYSE:TKO - Get Free Report) last issued its earnings results 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 company had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.23 billion. TKO Group had a return on equity of 2.82% and a net margin of 5.40%.The business's revenue was up 53.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.72 earnings per share. As a group, sell-side analysts forecast that TKO Group will post 3.88 earnings per share for the current fiscal year.

TKO Group announced that its board has authorized a share repurchase plan on Monday, September 15th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other TKO Group news, Director Nick Khan sold 45,168 shares of the business's stock in a transaction on Monday, July 21st. The stock was 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 approximately $26,732,305.08. The trade was a 22.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders sold a total of 73,725 shares of company stock valued at $12,767,807 over the last quarter. 53.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On TKO Group

Institutional investors have recently modified their holdings of the stock. Sentry Investment Management LLC acquired a new position in TKO Group during the 1st quarter worth $25,000. Hemington Wealth Management lifted its stake in shares of 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 period. Whittier Trust Co. lifted its stake in shares of 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 period. N.E.W. Advisory Services LLC bought a new stake in shares of TKO Group in the 1st quarter valued at $26,000. Finally, Golden State Wealth Management LLC increased its position in shares of 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 buying an additional 126 shares in the last quarter. 89.79% of the stock is owned by institutional investors.

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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