TKO Group (NYSE:TKO) Releases Quarterly Earnings Results, Misses Estimates By $0.07 EPS

TKO Group (NYSE:TKO) posted its quarterly earnings data on Monday. The company reported $1.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.41 by ($0.07), FiscalAI reports. 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 2.49% and a net margin of 4.47%.

TKO Group Stock Performance

Shares of TKO stock traded up $1.71 on Monday, reaching $183.52. The stock had a trading volume of 1,808,852 shares, compared to its average volume of 1,277,346. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.57. The firm’s 50-day moving average is $194.93 and its two-hundred day moving average is $197.73. The firm has a market capitalization of $35.62 billion, a price-to-earnings ratio of 68.48 and a beta of 0.63. TKO Group has a 12 month low of $152.29 and a 12 month high of $226.94.

TKO Group Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a $0.79 dividend. This is a boost from TKO Group’s previous quarterly dividend of $0.78. The ex-dividend date of this dividend was Monday, June 15th. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.7%. TKO Group’s payout ratio is 117.91%.

Insiders Place Their Bets

In other TKO Group news, Director Nick Khan sold 12,998 shares of the business’s stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $181.11, for a total transaction of $2,354,067.78. Following the transaction, the director owned 48,933 shares of the company’s stock, valued at $8,862,255.63. The trade was a 20.99% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark S. Shapiro acquired 10,807 shares of the company’s stock in a transaction on Wednesday, May 13th. The stock was acquired at an average price of $185.05 per share, for a total transaction of $1,999,835.35. Following the purchase, the insider directly owned 129,207 shares of the company’s stock, valued at approximately $23,909,755.35. This trade represents a 9.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have acquired 24,308 shares of company stock worth $4,499,679 and have sold 42,257 shares worth $7,946,068. Company insiders own 64.30% of the company’s stock.

Institutional Trading of TKO Group

Hedge funds have recently modified their holdings of the stock. CreativeOne Wealth LLC grew its stake in TKO Group by 2.1% in the 4th quarter. CreativeOne Wealth LLC now owns 2,586 shares of the company’s stock valued at $541,000 after buying an additional 54 shares during the last quarter. Sunbelt Securities Inc. boosted its holdings in shares of TKO Group by 6.3% during the third quarter. Sunbelt Securities Inc. now owns 950 shares of the company’s stock worth $192,000 after acquiring an additional 56 shares during the period. Northwestern Mutual Wealth Management Co. grew its position in shares of TKO Group by 29.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 249 shares of the company’s stock valued at $52,000 after purchasing an additional 57 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in shares of TKO Group by 14.1% during the second quarter. Geneos Wealth Management Inc. now owns 582 shares of the company’s stock worth $106,000 after purchasing an additional 72 shares during the period. Finally, Axxcess Wealth Management LLC boosted its stake in TKO Group by 5.3% in the 4th quarter. Axxcess Wealth Management LLC now owns 1,425 shares of the company’s stock valued at $298,000 after purchasing an additional 72 shares during the period. Institutional investors and hedge funds own 89.79% of the company’s stock.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on TKO. Citigroup cut shares of TKO Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Wall Street Zen raised shares of TKO Group from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Sanford C. Bernstein reduced their price objective on shares of TKO Group from $240.00 to $235.00 and set an “outperform” rating for the company in a research note on Tuesday, July 28th. BTIG Research reaffirmed a “buy” rating and issued a $237.00 target price on shares of TKO Group in a research report on Wednesday, July 29th. Finally, Guggenheim dropped their target price on TKO Group from $232.00 to $230.00 and set a “buy” rating on the stock in a report on Wednesday, July 15th. Eleven research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $233.53.

About TKO Group

TKO Group Holdings (NYSE: TKO) is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.

TKO’s core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.