TKO Group (NYSE: TKO) has garnered a “Peer Perform” rating from Wolfe Research, reflecting a positive outlook for the company. This rating was reaffirmed in a research report published on Thursday, signaling confidence in TKO Group’s performance amidst recent market activities. Various other analysts have also weighed in, revealing a diverse range of target prices and ratings for the company.
In a separate evaluation, Morgan Stanley established a target price of $210.00 on TKO Group shares on December 18, 2023. Following closely, Susquehanna reiterated a “positive” rating with a target price of $251.00 on January 19, 2024. TD Cowen joined the ranks by restating a “buy” rating on December 8, 2023, further solidifying the stock’s favorable perception. Notably, JPMorgan Chase & Co. raised their price objective from $220.00 to $225.00 on January 21, 2024, maintaining an “overweight” rating. Similarly, UBS Group increased its target from $235.00 to $238.00 on February 26, 2024, while issuing a “buy” rating. Collectively, analysts have rated TKO Group with thirteen “Buy” ratings and six “Hold” ratings, leading to an average rating of “Moderate Buy” with a consensus price target of $231.40, according to MarketBeat.com.
Recent Earnings Report and Dividend Announcement
TKO Group recently released its earnings results on February 25, 2024, reporting an earnings per share (EPS) of ($0.08), falling short of the consensus estimate of $0.12 by ($0.20). Despite this shortfall, the company’s revenue reached $1.04 billion, slightly exceeding the expected $1.02 billion. The firm achieved a return on equity of 2.07% and a net margin of 4.13%, marking an 11.9% revenue increase compared to the same quarter last year. In the previous year, TKO Group announced an EPS of $0.28 for the same quarter. Analysts forecast that the company will achieve an EPS of 3.88 for the current fiscal year.
In addition, TKO Group announced a quarterly dividend of $0.78, scheduled for payment on March 31, 2024. Shareholders of record on March 16, 2024, will qualify for the dividend, which represents an annualized payout of $3.12 and a yield of 1.5%. The company’s payout ratio currently stands at 138.67%.
Insider Trading Activity and Institutional Investment
Recent insider trading activity has seen significant transactions. Chief Financial Officer Shane Kapral sold 616 shares on March 3, 2024, at an average price of $221.91, totaling approximately $136,696.56. Following the sale, Kapral retained 353 shares valued at $78,334.23, reflecting a 63.57% decrease in his position. The transaction was disclosed in a legal filing with the SEC.
Additionally, Director Nick Khan sold 9,518 shares on the same day at an average price of $220.29, amounting to around $2,096,720.22. After this transaction, Khan held 110,048 shares valued at approximately $24,242,473.92, indicating a decline of 7.96% in his stake. Over the last ninety days, insiders have sold a total of 169,563 shares worth $34,642,745. Corporate insiders currently own 61.30% of the company’s stock.
Institutional investors have also been active in adjusting their stakes in TKO Group. OCONNOR, a distinct business unit of UBS Asset Management Americas LLC, increased its holdings by 150.0% during the fourth quarter, acquiring an additional 9,000 shares to reach a total of 15,000 shares valued at $3,135,000. Axxcess Wealth Management LLC grew its position by 5.3%, while Corient Private Wealth LLC increased its stake by 16.6%. Mercer Global Advisors Inc. ADV also raised its holdings by 27.7%. Notably, Raymond James Financial Inc. expanded its ownership by 26.8% during the same period. Currently, hedge funds and institutional investors hold 89.79% of TKO Group’s stock.
TKO Group, formed in 2023, combines the mixed martial arts organization UFC with the sports entertainment business WWE under a single publicly traded holding company. The firm manages a diverse portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content, encompassing the promotion and production of live events, licensing, and the commercialization of branded consumer products.
