TKO Group's (TKO) "Hold (C+)" Rating Reiterated at Weiss Ratings

Key Points

• Weiss Ratings has reaffirmed a "Hold (C+)" rating for TKO Group, while other analysts have issued more optimistic ratings, with Guggenheim and UBS both raising their price targets to $225.00 and $235.00, respectively.
• TKO Group recently announced a share buyback plan worth $1 billion as an indication of management's belief that the stock is undervalued.
• In the last quarter, TKO reported a revenue increase of 53.7% year-over-year, despite missing EPS estimates, showing significant growth potential.

TKO Group (NYSE:TKO - Get Free Report)'s stock had its "hold (c+)" rating reissued by research analysts at Weiss Ratings in a report released on Tuesday,Weiss Ratings reports.

Other research analysts have also recently issued reports about the stock. Guggenheim raised their price objective on shares of TKO Group from $205.00 to $225.00 and gave the stock a "buy" rating in a research note on Friday, October 3rd. 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 note on Wednesday, September 17th. Robert W. Baird raised their price objective on shares of TKO Group from $225.00 to $250.00 and gave the stock an "outperform" rating in a research note on Tuesday, September 16th. Seaport Res Ptn cut shares of TKO Group from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 8th. Finally, 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 note on Tuesday, August 12th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, TKO Group presently has an average rating of "Moderate Buy" and a consensus target price of $206.07.

TKO Group Price Performance

TKO Group stock traded up $1.62 during mid-day trading on Tuesday, reaching $190.22. The company had a trading volume of 319,572 shares, compared to its average volume of 1,272,614. TKO Group has a 1 year low of $114.01 and a 1 year high of $212.49. 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 company has a market capitalization of $37.72 billion, a P/E ratio of 78.56 and a beta of 0.76. The stock's 50-day simple moving average is $190.73 and its 200-day simple moving average is $172.68.

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). TKO Group had a net margin of 5.40% and a return on equity of 2.82%. The company had revenue of $1.31 billion during the quarter, compared to analysts' expectations of $1.23 billion. During the same period last year, the business posted $0.72 earnings per share. The company'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 EPS for the current year.

TKO Group declared that its Board of Directors has authorized a share buyback plan on Monday, September 15th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 2.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In other TKO Group news, 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 in the company, valued at $26,732,305.08. This trade represents a 22.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Peter C. B. Bynoe purchased 740 shares of the firm's stock in a transaction on Tuesday, September 16th. The stock was bought at an average price of $203.00 per share, for a total transaction of $150,220.00. Following the acquisition, the director owned 5,187 shares in the company, valued at $1,052,961. The trade was a 16.64% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders sold 73,725 shares of company stock worth $12,966,373. 53.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On TKO Group

A number of hedge funds have recently made changes to their positions in TKO. Whittier Trust Co. raised 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 acquiring an additional 105 shares during the period. Golden State Wealth Management LLC raised its stake 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 acquiring an additional 126 shares during the period. Hemington Wealth Management raised 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 acquiring an additional 136 shares during the period. N.E.W. Advisory Services LLC purchased a new position in shares of TKO Group in the 1st quarter valued at $26,000. Finally, Bartlett & CO. Wealth Management LLC purchased a new position in shares of TKO Group in the 1st quarter valued at $27,000. Institutional investors and hedge funds own 89.79% of the company's stock.

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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