TKO Group (NYSE:TKO) Hits New 1-Year Low – Here’s What Happened

TKO Group Holdings, Inc. (NYSE:TKO) hit a new 52-week low on Tuesday. The stock traded as low as $171.19 and last traded at $177.3680, with a volume of 1423363 shares changing hands. The stock had previously closed at $175.58.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Guggenheim raised their target price on TKO Group from $230.00 to $235.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Benchmark reaffirmed a “hold” rating on shares of TKO Group in a research note on Tuesday, August 4th. Sanford C. Bernstein upped their price objective on shares of TKO Group from $235.00 to $240.00 and gave the stock an “outperform” rating in a report on Wednesday, September 16th. Roth Capital reissued a “buy” rating and set a $230.00 price target on shares of TKO Group in a research report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. decreased 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. Ten investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, TKO Group has a consensus rating of “Moderate Buy” and a consensus target price of $237.50.

TKO Group Price Performance

The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.58. The firm has a 50 day moving average price of $187.86 and a 200 day moving average price of $191.45. The stock has a market cap of $33.81 billion, a P/E ratio of 62.67 and a beta of 0.67.

TKO Group (NYSE:TKO) last posted its quarterly earnings results on Monday, August 3rd. The company reported $1.34 EPS for the quarter, missing analysts’ consensus estimates of $1.41 by ($0.07). TKO Group had a net margin of 4.33% and a return on equity of 2.67%. The business had revenue of $1.55 billion for the quarter, compared to the consensus estimate of $1.54 billion. During the same period in the prior year, the business earned $1.17 earnings per share. TKO Group’s revenue was up 18.2% compared to the same quarter last year. On average, analysts forecast that TKO Group Holdings, Inc. will post 4.4 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 of this dividend was Tuesday, September 15th. TKO Group’s dividend payout ratio (DPR) is presently 110.88%.

Insider Activity

In related news, CEO Ariel Emanuel sold 24,702 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total transaction of $4,801,821.78. Following the transaction, the chief executive officer directly owned 174,334 shares in the company, valued at approximately $33,888,786.26. This represents a 12.41% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Andrew Schleimer sold 9,942 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total value of $1,932,625.38. Following the transaction, the chief financial officer directly owned 38,051 shares in the company, valued at approximately $7,396,733.89. This represents a 20.72% 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. Insiders sold a total of 120,404 shares of company stock valued at $23,073,938 in the last quarter. 64.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Vontobel Holding Ltd. increased its holdings in shares of TKO Group by 108,668.4% in the fourth quarter. Vontobel Holding Ltd. now owns 1,268,239 shares of the company’s stock valued at $265,062,000 after purchasing an additional 1,267,073 shares during the period. Bank of America Corp DE boosted its holdings in TKO Group by 22.5% in the 1st quarter. Bank of America Corp DE now owns 1,393,727 shares of the company’s stock worth $281,045,000 after buying an additional 256,305 shares during the last quarter. Munro Partners grew its holdings in shares of TKO Group by 24.4% during the fourth quarter. Munro Partners now owns 712,256 shares of the company’s stock worth $148,862,000 after buying an additional 139,600 shares in the last quarter. Pacer Advisors Inc. increased its holdings in shares of TKO Group by 2,440.3% in the first quarter. Pacer Advisors Inc. now owns 135,346 shares of the company’s stock valued at $27,293,000 after purchasing an additional 130,018 shares during the last quarter. Finally, Hawk Ridge Capital Management LP raised its stake in 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 purchasing an additional 58,604 shares during the period. Hedge funds and other institutional investors own 89.79% of the company’s stock.

About TKO Group

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.