TKO Group (NYSE:TKO) Stock Price Up 8% - Still a Buy?

Key Points

• TKO Group's stock price surged by 8% on Monday, reaching a high of $177.63, fueled by increased trading volume and subsequent analyst upgrades.
• Analysts from firms such as JPMorgan Chase and UBS Group have raised their price targets for TKO Group, indicating a strong positive sentiment among investment analysts.
• The company recently announced a quarterly dividend of $0.38 per share, representing an annualized yield of 0.8%, with a current payout ratio of approximately 62.81%.

TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report)'s share price traded up 8% during trading on Monday . The company traded as high as $177.63 and last traded at $176.41. 1,343,476 shares were traded during mid-day trading, an increase of 4% from the average session volume of 1,291,737 shares. The stock had previously closed at $163.29.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. The Goldman Sachs Group lifted their price objective on TKO Group from $170.00 to $188.00 and gave the stock a "buy" rating in a research note on Monday, May 12th. JPMorgan Chase & Co. lifted their price objective on TKO Group from $158.00 to $182.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 21st. Roth Capital set a $210.00 price objective on TKO Group and gave the stock a "buy" rating in a research note on Tuesday. Guggenheim lifted their price objective on TKO Group from $200.00 to $205.00 and gave the stock a "buy" rating in a research note on Wednesday. Finally, 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 note on Thursday, August 7th. Two equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, TKO Group currently has a consensus rating of "Moderate Buy" and an average price target of $183.15.

TKO Group Price Performance

The stock has a market capitalization of $37.69 billion, a P/E ratio of 78.84 and a beta of 0.72. The business has a fifty day simple moving average of $170.62 and a 200-day simple moving average of $161.11. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.30 and a current ratio of 1.30.

TKO Group (NYSE:TKO - Get Free Report) last posted its quarterly 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). TKO Group had a return on equity of 2.82% and a net margin of 5.40%. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the previous year, the company posted $0.72 earnings per share. TKO Group's quarterly revenue was up 53.7% on a year-over-year basis. Sell-side analysts expect that TKO Group Holdings, Inc. will post 3.88 earnings per share for the current fiscal year.

TKO Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 13th were given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, June 13th. TKO Group's dividend payout ratio is presently 62.81%.

Insider Transactions at TKO Group

In other news, major shareholder Lake West Voteco L.L.C Silver bought 1,579,080 shares of the stock in a transaction dated Tuesday, June 3rd. The shares were bought at an average cost of $158.32 per share, with a total value of $249,999,945.60. Following the completion of the transaction, the insider directly owned 4,158,517 shares of the company's stock, valued at $658,376,411.44. This trade represents a 61.22% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Nick Khan sold 45,168 shares of the company's stock in a transaction that occurred 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 directly owned 156,494 shares in the company, valued at $26,732,305.08. The trade was a 22.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 73,725 shares of company stock valued at $12,501,561 over the last ninety days. 53.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On TKO Group

A number of institutional investors have recently modified their holdings of the company. Focus Partners Advisor Solutions LLC raised its position in shares of TKO Group by 3.6% during the fourth quarter. Focus Partners Advisor Solutions LLC now owns 1,835 shares of the company's stock worth $261,000 after purchasing an additional 63 shares during the period. Howe & Rusling Inc. raised its position in TKO Group by 4.7% in the 2nd quarter. Howe & Rusling Inc. now owns 1,603 shares of the company's stock valued at $292,000 after buying an additional 72 shares during the last quarter. CreativeOne Wealth LLC raised its position in TKO Group by 3.0% in the 2nd quarter. CreativeOne Wealth LLC now owns 2,503 shares of the company's stock valued at $455,000 after buying an additional 73 shares during the last quarter. Retirement Systems of Alabama raised its position in TKO Group by 0.5% in the 2nd quarter. Retirement Systems of Alabama now owns 14,385 shares of the company's stock valued at $2,617,000 after buying an additional 77 shares during the last quarter. Finally, Simon Quick Advisors LLC raised its position in TKO Group by 1.1% in the 1st quarter. Simon Quick Advisors LLC now owns 7,558 shares of the company's stock valued at $1,155,000 after buying an additional 82 shares during the last quarter. 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.