TKO Group (NYSE:TKO) Stock Rating Upgraded by Seaport Res Ptn

Key Points

• TKO Group has been upgraded to a "strong-buy" rating by Seaport Res Ptn, indicating increased confidence in the company's future performance.
• Investment analysts are predicting that TKO Group will achieve earnings per share of $4.03 in FY2027, $4.99 in FY2028, and $5.38 in FY2029, showcasing strong anticipated growth.
• The company has launched a $1 billion stock buyback plan, indicating that its board believes the stock may be undervalued, which often reflects positively on investor sentiment.

TKO Group (NYSE:TKO - Get Free Report) was upgraded by investment analysts at Seaport Res Ptn from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday,Zacks.com reports. Seaport Res Ptn also issued estimates for TKO Group's FY2027 earnings at $4.03 EPS, FY2028 earnings at $4.99 EPS and FY2029 earnings at $5.38 EPS.

Several other research firms have also recently issued reports on TKO. Baird R W upgraded shares of TKO Group to a "strong-buy" rating in a research report on Friday, September 5th. UBS Group raised their price objective on shares of TKO Group from $200.00 to $235.00 and gave the stock a "buy" rating in a research report on Wednesday, September 17th. Bank of America raised their price objective on shares of TKO Group from $200.00 to $210.00 and gave the stock a "buy" rating in a research report on Tuesday, August 12th. JPMorgan Chase & Co. raised their price objective on shares of TKO Group from $182.00 to $212.00 and gave the stock an "overweight" rating in a research report on Thursday, August 21st. Finally, Zacks Research upgraded shares of TKO Group from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 6th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $210.21.

TKO Group Price Performance

Shares of NYSE TKO opened at $188.26 on Wednesday. The firm has a 50-day simple moving average of $192.50 and a 200-day simple moving average of $173.17. The stock has a market capitalization of $37.33 billion, a price-to-earnings ratio of 77.79 and a beta of 0.76. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28. 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 EPS 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 business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.23 billion. During the same quarter last year, the company earned $0.72 earnings per share. TKO Group's quarterly revenue was up 53.7% on a year-over-year basis. On average, equities analysts predict that TKO Group will post 3.88 earnings per share for the current fiscal year.

TKO Group declared that its board has approved a stock buyback plan on Monday, September 15th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the company to buy up to 2.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its stock is undervalued.

Insider Activity at TKO Group

In other TKO Group news, Director Peter C. B. Bynoe acquired 740 shares of the stock in a transaction dated Tuesday, September 16th. The stock was acquired at an average price of $203.00 per share, with a total value of $150,220.00. Following the completion of the purchase, the director owned 5,187 shares in the company, valued at $1,052,961. This trade represents a 16.64% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Nick Khan sold 45,168 shares of the firm's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $170.82, for a total transaction of $7,715,597.76. Following the completion of the transaction, the director directly 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 position. The disclosure for this sale can be found here. In the last three months, insiders sold 73,725 shares of company stock valued at $12,966,373. Insiders own 61.30% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in TKO. Somerset Trust Co raised its holdings in TKO Group by 2.5% during the third quarter. Somerset Trust Co now owns 2,155 shares of the company's stock worth $435,000 after purchasing an additional 53 shares in the last quarter. CWM LLC increased its holdings in shares of TKO Group by 7.3% in the 3rd quarter. CWM LLC now owns 796 shares of the company's stock valued at $161,000 after acquiring an additional 54 shares during the period. Howe & Rusling Inc. increased its stake 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 period. Geneos Wealth Management Inc. increased its stake in TKO Group by 14.1% in the 2nd quarter. Geneos Wealth Management Inc. now owns 582 shares of the company's stock valued at $106,000 after buying an additional 72 shares during the period. Finally, CreativeOne Wealth LLC increased its stake 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 period. Hedge funds and other institutional investors own 89.79% of the company's stock.

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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