TKO Group (NYSE:TKO) Upgraded to Strong-Buy at Zacks Research

Key Points

• TKO Group has been upgraded to a "strong-buy" rating by Zacks Research, indicating increased confidence in the company's stock performance.
• After a recent earnings report, TKO Group reported $1.31 billion in revenue, significantly exceeding analyst expectations, despite missing EPS estimates.
• The company has announced a $1 billion share buyback plan, suggesting that management believes the stock is undervalued.

TKO Group (NYSE:TKO - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Monday,Zacks.com reports.

TKO has been the topic of a number of other research reports. Guggenheim increased their target price on TKO Group from $205.00 to $225.00 and gave the company a "buy" rating in a report on Friday. Seaport Res Ptn cut TKO Group from a "strong-buy" rating to a "hold" rating in a report on Monday, September 8th. Baird R W upgraded TKO Group to a "strong-buy" rating in a report on Friday, September 5th. Bank of America lifted their target price on TKO Group from $200.00 to $210.00 and gave the stock a "buy" rating in a report on Tuesday, August 12th. Finally, Morgan Stanley lifted their target price on TKO Group from $165.00 to $205.00 and gave the stock an "equal weight" rating in a report on Thursday, September 25th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, TKO Group currently has an average rating of "Moderate Buy" and an average target price of $206.07.

TKO Group Trading Up 0.1%

NYSE TKO opened at $198.26 on Monday. TKO Group has a 12 month low of $114.01 and a 12 month high of $212.49. The stock has a market cap of $39.32 billion, a P/E ratio of 81.93 and a beta of 0.76. The stock's fifty day moving average price is $188.96 and its 200-day moving average price is $171.54. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.28.

TKO Group (NYSE:TKO - Get Free Report) last released 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 return on equity of 2.82% and a net margin of 5.40%.The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.23 billion. During the same period in the prior year, the company posted $0.72 earnings per share. The company's revenue was up 53.7% on a year-over-year basis. As a group, equities analysts forecast that TKO Group will post 3.88 EPS for the current fiscal year.

TKO Group announced that its Board of Directors has authorized a share buyback plan on Monday, September 15th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In other TKO Group news, Director Nick Khan sold 9,519 shares of TKO Group stock in a transaction on Friday, October 3rd. The stock was sold at an average price of $197.82, for a total transaction of $1,883,048.58. Following the completion of the sale, the director directly owned 128,023 shares of the company's stock, valued at $25,325,509.86. The trade was a 6.92% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Peter C. B. Bynoe bought 740 shares of the firm's stock in a transaction on Tuesday, September 16th. The shares were purchased at an average cost of $203.00 per share, with a total value of $150,220.00. Following the completion of the transaction, the director owned 5,187 shares in the company, valued at $1,052,961. This represents a 16.64% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders have sold 73,725 shares of company stock valued at $12,966,373. 53.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Whittier Trust Co. raised its position in shares of TKO Group by 350.0% in the 2nd quarter. Whittier Trust Co. now owns 135 shares of the company's stock worth $25,000 after acquiring an additional 105 shares in the last quarter. Golden State Wealth Management LLC raised 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 worth $26,000 after acquiring an additional 126 shares in the last quarter. Hemington Wealth Management raised its position in shares of TKO Group by 425.0% in the 1st quarter. Hemington Wealth Management now owns 168 shares of the company's stock worth $25,000 after acquiring an additional 136 shares in the last quarter. N.E.W. Advisory Services LLC bought a new position in shares of TKO Group in the 1st quarter worth $26,000. Finally, Bartlett & CO. Wealth Management LLC bought a new position in shares of TKO Group in the 1st quarter worth $27,000. 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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