Key Points
- Insider buying: TKO Group insider Mark Shapiro purchased 10,807 shares for about $2.0 million at an average price of $185.05, increasing his holdings by 9.13%. The filing notes the trade was made to cover tax withholding obligations tied to vesting equity awards.
- Strong recent earnings: TKO reported $1.12 EPS on revenue of $1.60 billion, narrowly beating analyst estimates on both lines. Quarterly revenue rose 25.9% year over year, and analysts now expect about 5 EPS for the full fiscal year.
- Positive business and market backdrop: The company recently announced new event deals in Arizona that should expand its live-event footprint, while analysts maintain a Moderate Buy consensus with an average price target of $233.73. Institutional ownership remains high at 89.79%.
TKO Group Holdings, Inc. (NYSE:TKO - Get Free Report) CFO Andrew Schleimer bought 2,696 shares of TKO Group stock in a transaction dated Wednesday, May 13th. The shares were bought at an average price of $185.44 per share, for a total transaction of $499,946.24. Following the completion of the transaction, the chief financial officer directly owned 30,240 shares of the company's stock, valued at $5,607,705.60. This represents a 9.79% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
TKO Group Price Performance
Shares of TKO stock opened at $183.71 on Thursday. TKO Group Holdings, Inc. has a 1 year low of $152.29 and a 1 year high of $226.94. The firm's 50 day moving average is $194.42 and its 200-day moving average is $198.64. The firm has a market capitalization of $35.66 billion, a price-to-earnings ratio of 68.55 and a beta of 0.57. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.57.
TKO Group (NYSE:TKO - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $1.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.11 by $0.01. TKO Group had a net margin of 4.47% and a return on equity of 2.49%. The company had revenue of $1.60 billion for the quarter, compared to analyst estimates of $1.59 billion. During the same period in the prior year, the business earned $0.69 earnings per share. TKO Group's quarterly revenue was up 25.9% on a year-over-year basis. Sell-side analysts forecast that TKO Group Holdings, Inc. will post 5 EPS for the current fiscal year.
TKO Group Dividend Announcement
The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 16th were issued a $0.78 dividend. The ex-dividend date was Monday, March 16th. This represents a $3.12 annualized dividend and a yield of 1.7%. TKO Group's dividend payout ratio (DPR) is currently 116.42%.
TKO Group News Summary
Here are the key news stories impacting TKO Group this week:
- Positive Sentiment: TKO announced a major multi-event deal with the Arizona Sports & Events Alliance that will bring UFC, WWE, and other events to Phoenix, expanding the company’s live-event footprint and creating new commercial opportunities. Article Title
- Positive Sentiment: TKO also disclosed a 7-event Arizona deal across UFC, WWE, and bull riding, reinforcing expectations for more events and broader monetization of its portfolio. Article Title
- Positive Sentiment: CEO Ariel Emanuel and CFO Andrew M. Schleimer both bought shares in the open market, a signal that management may view the stock as undervalued and is aligned with shareholders.
- Positive Sentiment: TKO updated its Rule 10b5-1 share repurchase plan, which can support sentiment by indicating ongoing capital-return activity and confidence in the business. Article Title
Institutional Trading of TKO Group
Several hedge funds have recently added to or reduced their stakes in the business. State Street Corp raised its stake in TKO Group by 20.3% during the 3rd quarter. State Street Corp now owns 5,249,091 shares of the company's stock worth $1,060,106,000 after buying an additional 887,401 shares during the period. Ninety One UK Ltd raised its stake in TKO Group by 0.8% during the 4th quarter. Ninety One UK Ltd now owns 5,006,158 shares of the company's stock worth $1,046,287,000 after buying an additional 42,156 shares during the period. Massachusetts Financial Services Co. MA lifted its stake in TKO Group by 54.9% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 3,185,769 shares of the company's stock valued at $665,826,000 after buying an additional 1,128,749 shares in the last quarter. XN LP lifted its stake in TKO Group by 6.3% in the fourth quarter. XN LP now owns 2,866,943 shares of the company's stock valued at $599,191,000 after buying an additional 169,574 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in TKO Group by 20.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,373,243 shares of the company's stock valued at $496,008,000 after buying an additional 395,040 shares in the last quarter. Institutional investors and hedge funds own 89.79% of the company's stock.
Analyst Upgrades and Downgrades
TKO has been the topic of several recent research reports. UBS Group raised their price target on TKO Group from $235.00 to $238.00 and gave the company a "buy" rating in a report on Thursday, February 26th. Sanford C. Bernstein decreased their price target on TKO Group from $250.00 to $240.00 and set an "outperform" rating on the stock in a report on Monday, April 27th. Wall Street Zen upgraded TKO Group from a "sell" rating to a "hold" rating in a report on Saturday, May 9th. BTIG Research reaffirmed a "buy" rating and set a $237.00 target price on shares of TKO Group in a report on Thursday, May 7th. Finally, Weiss Ratings raised shares of TKO Group from a "hold (c-)" rating to a "hold (c+)" rating in a report on Thursday, May 7th. Eleven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $233.73.
Read Our Latest Stock Analysis on TKO Group
TKO Group Company Profile
(
Get Free Report)
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.
Further Reading
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