TKO Group (NYSE: TKO) has garnered attention from analysts following a series of recent ratings and its latest earnings report. On Thursday morning, Wolfe Research reaffirmed its “Peer Perform” rating on TKO Group shares, indicating a stable outlook for the company. This update comes as a part of a broader analysis by various financial institutions.
In addition to Wolfe Research, other analysts have also provided insights into TKO Group’s performance. On December 18, 2023, Morgan Stanley set a target price of $210.00 for the stock. Following that, Susquehanna reiterated a “positive” rating with a target price of $251.00 on January 19, 2024. Meanwhile, JPMorgan Chase & Co. increased their price objective from $220.00 to $225.00 on January 21, 2024, awarding the company an “overweight” rating.
Recent Earnings and Dividend Announcement
The company recently released its earnings results on February 25, 2024. TKO Group reported an earnings per share (EPS) of (0.08), falling short of the consensus estimate of $0.12 by $0.20. Despite this setback, TKO Group generated revenue of $1.04 billion, surpassing the expected $1.02 billion. The firm’s return on equity stood at 2.07%, with a net margin of 4.13%. Revenue saw an increase of 11.9% compared to the same quarter last year.
Looking ahead, analysts predict that TKO Group will achieve an EPS of 3.88 for the current fiscal year. The company has also announced a quarterly dividend of $0.78, scheduled for payment on March 31, 2024. Shareholders of record on March 16, 2024, will receive this dividend, which represents an annualized payout of $3.12 and a yield of 1.5%. The current payout ratio is reported at 138.67%.
Insider Activity and Institutional Investments
In related developments, TKO Group’s Chief Financial Officer, Shane Kapral, sold 616 shares of the company on March 3, 2024, at an average price of $221.91, totaling approximately $136,696.56. Following this transaction, Kapral retained 353 shares valued at around $78,334.23, marking a 63.57% reduction in his ownership.
Additionally, Director Nick Khan sold 9,518 shares the same day for $2,096,720.22, leaving him with 110,048 shares valued at approximately $24,242,473.92. This sale represented a 7.96% decrease in Khan’s holdings. Over the past ninety days, insiders have sold a total of 169,563 shares worth $34,642,745.
Institutional investors have also shown significant interest in TKO Group. Notably, OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its shareholdings by 150.0% in the fourth quarter, now owning 15,000 shares valued at $3,135,000. Other firms, including Axxcess Wealth Management LLC and Mercer Global Advisors Inc. ADV, have also expanded their positions in TKO Group.
Currently, approximately 89.79% of TKO Group’s shares are held by hedge funds and institutional investors, indicating strong institutional confidence in the company.
Formed in 2023, TKO Group Holdings (NYSE: TKO) is a global sports and entertainment entity established from the merger of the mixed martial arts organization UFC and the sports entertainment company WWE. TKO Group manages a diverse portfolio of live-event franchises, intellectual property, and media rights focused on combat sports and entertainment.
