Motley Fool Asset Management LLC Makes New Investment in TKO Group Holdings, Inc. $TKO

Motley Fool Asset Management LLC acquired a new position in shares of TKO Group Holdings, Inc. (NYSE:TKO) during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 10,026 shares of the company’s stock, valued at approximately $1,802,000.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Bank of America Corp DE increased its stake in TKO Group by 22.5% in the first quarter. Bank of America Corp DE now owns 1,393,727 shares of the company’s stock valued at $281,045,000 after purchasing an additional 256,305 shares during the period. Annex Advisory Services LLC raised its holdings in shares of TKO Group by 1.3% in the second quarter. Annex Advisory Services LLC now owns 418,586 shares of the company’s stock valued at $84,266,000 after buying an additional 5,483 shares during the last quarter. Hawk Ridge Capital Management LP boosted its stake in shares of TKO Group by 16.5% during the first quarter. Hawk Ridge Capital Management LP now owns 413,641 shares of the company’s stock worth $83,411,000 after buying an additional 58,604 shares during the period. Cat Rock Capital Management LP grew its holdings in shares of TKO Group by 10.7% during the second quarter. Cat Rock Capital Management LP now owns 339,211 shares of the company’s stock worth $68,287,000 after buying an additional 32,700 shares during the last quarter. Finally, Braun Stacey Associates Inc. increased its position in TKO Group by 7.7% in the 2nd quarter. Braun Stacey Associates Inc. now owns 138,509 shares of the company’s stock valued at $27,883,000 after acquiring an additional 9,924 shares during the period. 89.79% of the stock is owned by hedge funds and other institutional investors.

TKO Group Stock Up 2.6%

TKO stock opened at $178.43 on Friday. The company has a market capitalization of $33.77 billion, a P/E ratio of 62.61 and a beta of 0.67. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 0.58. TKO Group Holdings, Inc. has a twelve month low of $170.14 and a twelve month high of $226.94. The firm has a 50 day simple moving average of $183.09 and a 200-day simple moving average of $193.63.

TKO Group (NYSE:TKO) last issued its quarterly earnings results on Monday, August 3rd. The company reported $1.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.41 by ($0.07). TKO Group had a net margin of 4.33% and a return on equity of 2.67%. The firm had revenue of $1.55 billion for the quarter, compared to analyst estimates of $1.54 billion. During the same quarter last year, the business posted $1.17 earnings per share. The firm’s revenue for the quarter was up 18.2% compared to the same quarter last year. On average, equities research analysts predict that TKO Group Holdings, Inc. will post 4.43 earnings per share for the current fiscal year.

TKO Group Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th were issued 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 Activity

In other news, Director Nick Khan sold 9,589 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $197.17, for a total value of $1,890,663.13. Following the completion of the sale, the director directly owned 39,344 shares of the company’s stock, valued at $7,757,456.48. This represents a 19.60% 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, CEO Ariel Emanuel sold 24,702 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total transaction of $4,801,821.78. Following the completion of the sale, the chief executive officer owned 174,334 shares of the company’s stock, valued at approximately $33,888,786.26. The trade was a 12.41% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 97,325 shares of company stock valued at $18,798,012. 64.30% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts have commented on the company. Arete Research raised TKO Group from a “neutral” rating to a “buy” rating and set a $208.00 price objective for the company in a research note on Tuesday, October 20th. BTIG Research reaffirmed a “buy” rating and issued a $237.00 target price on shares of TKO Group in a report on Wednesday, October 21st. Susquehanna dropped their target price on TKO Group from $235.00 to $224.00 and set a “positive” rating on the stock in a research report on Friday, October 16th. Sanford C. Bernstein boosted their target price on shares of TKO Group from $235.00 to $240.00 and gave the company an “outperform” rating in a report on Wednesday, September 16th. Finally, Robert W. Baird decreased their price target on shares of TKO Group from $275.00 to $250.00 and set an “outperform” rating on the stock in a report on Tuesday, August 18th. Fourteen equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, TKO Group presently has an average rating of “Moderate Buy” and a consensus price target of $228.65.

TKO Group Profile

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates UFC and WWE, two global combat-sports and sports-entertainment brands. UFC promotes mixed martial arts events, while WWE produces live and televised professional wrestling programming featuring its roster of performers, storylines and branded events.

In addition to its core properties, TKO provides related media, licensing, sponsorship, live-event and consumer-products opportunities. The company’s businesses serve audiences internationally through live events, broadcast and streaming distribution, digital content, merchandise and other commercial partnerships.

TKO was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings.