TKO Group (NYSE:TKO) Hits New 52-Week Low – Should You Sell?

TKO Group Holdings, Inc. (NYSE:TKO)’s stock price reached a new 52-week low on Wednesday. The stock traded as low as $170.92 and last traded at $171.58, with a volume of 71,398 shares traded. The stock had previously closed at $173.86.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on TKO shares. Benchmark reiterated a “hold” rating on shares of TKO Group in a report on Tuesday, August 4th. Seaport Research Partners reaffirmed a “buy” rating on shares of TKO Group in a research report on Friday. JPMorgan Chase & Co. reduced their price target on shares of TKO Group from $225.00 to $222.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Guggenheim upped their price objective on shares of TKO Group from $230.00 to $235.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Roth Capital reaffirmed a “buy” rating and set a $230.00 price objective on shares of TKO Group in a research report on Tuesday, August 4th. Ten research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, TKO Group presently has a consensus rating of “Moderate Buy” and an average target price of $237.50.

TKO Group Trading Down 1.2%

The company’s 50 day moving average price is $187.31 and its 200 day moving average price is $191.00. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.28 and a quick ratio of 1.28. The firm has a market cap of $32.50 billion, a PE ratio of 60.25 and a beta of 0.67.

TKO Group (NYSE:TKO) last announced its earnings results on Monday, August 3rd. The company reported $1.34 earnings per share for the quarter, missing the consensus estimate of $1.41 by ($0.07). TKO Group had a return on equity of 2.67% and a net margin of 4.33%. The business had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.54 billion. During the same period in the previous year, the company earned $1.17 earnings per share. TKO Group’s quarterly revenue was up 18.2% on a year-over-year basis. As a group, analysts forecast that TKO Group Holdings, Inc. will post 4.42 EPS for the current fiscal year.

TKO Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Tuesday, September 15th were paid a $0.79 dividend. This represents a $3.16 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Tuesday, September 15th. TKO Group’s dividend payout ratio (DPR) is presently 110.88%.

Insider Buying and Selling

In related news, CFO Andrew Schleimer sold 9,942 shares of the business’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total transaction of $1,932,625.38. Following the completion of the transaction, the chief financial officer directly owned 38,051 shares of the company’s stock, valued at $7,396,733.89. The trade was a 20.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nick Khan sold 12,998 shares of the company’s stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $181.11, for a total value of $2,354,067.78. Following the sale, the director owned 48,933 shares in the company, valued at approximately $8,862,255.63. This trade represents a 20.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 110,815 shares of company stock valued at $21,322,699. 64.30% of the stock is currently owned by company insiders.

Institutional Trading of TKO Group

Several hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its holdings in TKO Group by 12.2% in the second quarter. Allworth Financial LP now owns 615 shares of the company’s stock valued at $124,000 after purchasing an additional 67 shares during the last quarter. Wealthfront Advisers LLC raised its holdings in TKO Group by 4.0% in the first quarter. Wealthfront Advisers LLC now owns 2,324 shares of the company’s stock valued at $469,000 after acquiring an additional 89 shares in the last quarter. Patton Fund Management Inc. boosted its stake in TKO Group by 8.9% during the 1st quarter. Patton Fund Management Inc. now owns 1,219 shares of the company’s stock valued at $246,000 after acquiring an additional 100 shares during the last quarter. Cornerstone Planning Group LLC boosted its stake in TKO Group by 543.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 148 shares of the company’s stock valued at $28,000 after acquiring an additional 125 shares during the last quarter. Finally, QRG Capital Management Inc. grew its holdings in TKO Group by 5.8% during the 2nd quarter. QRG Capital Management Inc. now owns 2,812 shares of the company’s stock worth $566,000 after acquiring an additional 155 shares in the last quarter. Institutional investors and hedge funds own 89.79% of the company’s stock.

TKO Group Company Profile

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). The company was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings, creating a platform focused on live sports and entertainment properties.

UFC organizes and promotes mixed martial arts events, distributes related media content, and manages sponsorship, licensing, and consumer products. WWE produces professional wrestling programming and live events, including its flagship brands and premium events, while also generating revenue through media rights, sponsorships, licensing, merchandise, and digital content.

TKO serves audiences and commercial partners internationally through televised and streaming programming, live events, and licensed products.