TKO Group (NYSE:TKO) Sets New 52-Week Low – What’s Next?

TKO Group Holdings, Inc. (NYSE:TKO)’s stock price reached a new 52-week low on Monday. The company traded as low as $170.43 and last traded at $170.7550, with a volume of 279,794 shares changing hands. The stock had previously closed at $173.07.

Analyst Ratings Changes

A number of brokerages have issued reports on TKO. JPMorgan Chase & Co. dropped their target price on shares of TKO Group from $225.00 to $222.00 and set an “overweight” rating for the company in a report on Tuesday, July 21st. Weiss Ratings reiterated a “hold (c+)” rating on shares of TKO Group in a research note on Tuesday, August 4th. Robert W. Baird cut their target price on shares of TKO Group from $275.00 to $250.00 and set an “outperform” rating on the stock in a research note on Tuesday, August 18th. Guggenheim decreased their target price on TKO Group from $235.00 to $228.00 and set a “buy” rating for the company in a research note on Tuesday, October 20th. Finally, BTIG Research reaffirmed a “buy” rating and set a $237.00 target price on shares of TKO Group in a report on Wednesday, October 21st. Fourteen investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $228.65.

TKO Group Stock Performance

The stock has a market cap of $32.68 billion, a price-to-earnings ratio of 60.58 and a beta of 0.67. The company’s 50 day simple moving average is $183.93 and its 200 day simple moving average is $193.88. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.28 and a current ratio of 1.28.

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

TKO Group Announces Dividend

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

Insider Transactions at TKO Group

In related news, CFO Andrew Schleimer sold 9,942 shares of TKO Group stock in a transaction dated 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 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Ariel Emanuel sold 24,702 shares of the business’s stock in a transaction dated 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 in the company, valued at approximately $33,888,786.26. This trade represents a 12.41% decrease in their ownership of the stock. 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. Insiders sold 97,325 shares of company stock valued at $18,798,012 in the last three months. 64.30% of the stock is currently owned by insiders.

Institutional Trading of TKO Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. VIRGINIA RETIREMENT SYSTEMS ET Al raised its stake in TKO Group by 195.2% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 6,200 shares of the company’s stock valued at $1,114,000 after purchasing an additional 4,100 shares during the period. Motley Fool Asset Management LLC acquired a new position in TKO Group during the third quarter valued at $1,802,000. Moody Aldrich Partners LLC lifted its stake in TKO Group by 29.5% in the 3rd quarter. Moody Aldrich Partners LLC now owns 1,550 shares of the company’s stock worth $279,000 after acquiring an additional 353 shares in the last quarter. Asset Management One Co. Ltd. increased its holdings in shares of TKO Group by 2.5% in the 3rd quarter. Asset Management One Co. Ltd. now owns 2,665 shares of the company’s stock valued at $479,000 after purchasing an additional 64 shares during the period. Finally, Inspire Investing LLC grew its holdings in shares of TKO Group by 1.8% during the 3rd quarter. Inspire Investing LLC now owns 10,493 shares of the company’s stock valued at $1,886,000 after acquiring an additional 186 shares in the last quarter. 89.79% of the stock is owned by institutional investors and hedge funds.

TKO Group Company 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.