Wolfe Research Reiterates Peer Perform Rating for TKO Group (NYSE:TKO)

Key Points

• Analyst sentiment is mixed: Wolfe Research reissued a "peer perform" rating, but the consensus across analysts is a Moderate Buy with an average price target of about $231.40 and several firms raising targets into the $225–$251 range.
• TKO missed quarterly EPS (reported -$0.08 vs. $0.12 expected) despite revenue of $1.04B (+11.9% YoY); the stock traded down to $210.25, leaving a market cap near $41.0B and a P/E around 93.
• Recent insider selling (including the CFO and a director, totaling ~169,563 shares worth $34.6M over 90 days) combined with a newly declared $0.78 quarterly dividend—implying an estimated ~138% payout ratio—has raised concerns about insider conviction and dividend sustainability.

TKO Group (NYSE:TKO - Get Free Report)'s stock had its "peer perform" rating reissued by investment analysts at Wolfe Research in a research note issued on Thursday, MarketBeat.com reports.

TKO has been the topic of several other reports. Sanford C. Bernstein upped their target price on shares of TKO Group from $230.00 to $250.00 and gave the stock an "outperform" rating in a research note on Thursday, February 19th. JPMorgan Chase & Co. boosted their price target on shares of TKO Group from $220.00 to $225.00 and gave the stock an "overweight" rating in a research note on Wednesday, January 21st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of TKO Group in a research report on Monday, December 29th. TD Cowen reiterated a "buy" rating on shares of TKO Group in a report on Monday, December 8th. Finally, Susquehanna reissued a "positive" rating and set a $251.00 target price on shares of TKO Group in a research note on Monday, January 19th. Thirteen investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $231.40.

TKO Group Trading Down 2.8%

Shares of TKO stock traded down $5.98 on Thursday, hitting $210.25. The stock had a trading volume of 126,529 shares, compared to its average volume of 895,266. The company's 50 day moving average price is $207.96 and its 200-day moving average price is $198.47. TKO Group has a 1 year low of $133.07 and a 1 year high of $226.94. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.26 and a quick ratio of 1.26. The firm has a market capitalization of $41.02 billion, a P/E ratio of 93.44 and a beta of 0.66.

TKO Group (NYSE:TKO - Get Free Report) last released its earnings results on Wednesday, February 25th. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.20). The firm had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.02 billion. TKO Group had a net margin of 4.13% and a return on equity of 2.07%. The business's revenue was up 11.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.28 earnings per share. Analysts anticipate that TKO Group will post 3.88 earnings per share for the current year.

Insider Buying and Selling

In other TKO Group news, CFO Shane Kapral sold 616 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $221.91, for a total transaction of $136,696.56. Following the sale, the chief financial officer owned 353 shares of the company's stock, valued at approximately $78,334.23. This trade represents a 63.57% 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 link. Also, insider Seth D. Krauss sold 2,271 shares of the business's stock in a transaction that occurred on Tuesday, January 27th. The stock was sold at an average price of $200.71, for a total transaction of $455,812.41. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 169,563 shares of company stock worth $34,642,745 over the last 90 days. 61.30% of the stock is owned by insiders.

Institutional Investors Weigh In On TKO Group

Several hedge funds and other institutional investors have recently bought and sold shares of TKO. Vontobel Holding Ltd. boosted its stake in TKO Group by 108,668.4% in the fourth quarter. Vontobel Holding Ltd. now owns 1,268,239 shares of the company's stock valued at $265,062,000 after acquiring an additional 1,267,073 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its holdings in shares of TKO Group by 54.9% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 3,185,769 shares of the company's stock valued at $665,826,000 after purchasing an additional 1,128,749 shares during the last quarter. State Street Corp lifted its holdings in shares of TKO Group by 20.3% in the 3rd quarter. State Street Corp now owns 5,249,091 shares of the company's stock valued at $1,060,106,000 after purchasing an additional 887,401 shares during the last quarter. Norges Bank acquired a new stake in shares of TKO Group in the 2nd quarter valued at about $132,441,000. Finally, Alliancebernstein L.P. grew its stake in TKO Group by 551.8% during the 2nd quarter. Alliancebernstein L.P. now owns 494,964 shares of the company's stock worth $90,059,000 after buying an additional 419,021 shares during the last quarter. 89.79% of the stock is currently owned by institutional investors and hedge funds.

TKO Group News Summary

Here are the key news stories impacting TKO Group this week:

• Positive Sentiment: TKO declared a quarterly cash dividend of $0.78 per share (record Mar 16; payable Mar 31), providing income support and signaling management confidence in cash generation; yield ~1.4–1.5%. Read More.
• Neutral Sentiment: CEO/management commentary on talent pay: TKO’s Mark Shapiro said WWE and UFC pay “will have increases,” which may reassure talent relations but could pressure margins if cost increases are not offset by higher revenues. Read More.
• Neutral Sentiment: Analyst picture remains mixed-to-favorable overall: consensus is a “Moderate Buy” with a ~$231 average target, but pockets of analyst caution persist — this limits upside momentum. Read More.
• Negative Sentiment: CFO Shane Kapral sold 616 shares on Mar 3 (continuing a pattern of periodic sales), reducing his stake ~63.6% in that filing — insider sales can spook investors about near‑term insider conviction. Read More.
• Negative Sentiment: Director Nick Khan sold 9,518 shares (~$2.1M) on Mar 3, trimming his holding ~8% — another sizable insider sale that likely amplified selling pressure. Read More.
• Negative Sentiment: Seaport Research downgraded TKO to Neutral, reducing buy-side enthusiasm and providing a near-term catalyst for sellers. Read More.
• Negative Sentiment: Recent quarterly results included an EPS miss (reported -$0.08 vs. $0.12 expected) despite +11.9% revenue growth — earnings weakness and margin pressure remain investor concerns. Read More.
• Negative Sentiment: Dividend sustainability question: the announced payout implies a high payout ratio (~138% per reports), which raises sustainability concerns and may temper enthusiasm for the dividend over time. Read More.

TKO Group Company Profile

TKO Group Holdings NYSE: TKO is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.

TKO's core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.

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