TKO Group (NYSE:TKO) Reaches New 1-Year Low – Here’s Why

TKO Group Holdings, Inc. (NYSE:TKO) hit a new 52-week low on Monday. The stock 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 Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Arete Research raised shares of TKO Group from a “neutral” rating to a “buy” rating and set a $208.00 price objective on the stock in a research report on Tuesday, October 20th. Morgan Stanley upped their price target on TKO Group from $225.00 to $230.00 and gave the stock an “overweight” rating in a research note on Tuesday, August 4th. Benchmark reiterated a “hold” rating on shares of TKO Group in a report on Tuesday, August 4th. BTIG Research reissued a “buy” rating and issued a $237.00 price objective on shares of TKO Group in a research note on Wednesday, October 21st. Finally, Roth Capital restated a “buy” rating and set a $230.00 price objective on shares of TKO Group in a report on Tuesday, August 4th. Eleven research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $232.62.

TKO Group Price Performance

The business has a 50 day simple moving average of $184.70 and a 200-day simple moving average of $189.75. The firm has a market cap of $32.30 billion, a price-to-earnings ratio of 60.00 and a beta of 0.67. 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 released 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). The company had revenue of $1.55 billion during the quarter, compared to analysts’ expectations of $1.54 billion. TKO Group had a net margin of 4.33% and a return on equity of 2.67%. The company’s quarterly revenue was up 18.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.17 earnings per share. Equities research analysts expect that TKO Group Holdings, Inc. will post 4.43 earnings per share for the current year.

TKO Group Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were issued a dividend of $0.79 per share. This represents a $3.16 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Tuesday, September 15th. TKO Group’s dividend payout ratio (DPR) is 110.88%.

Insiders Place Their Bets

In other TKO Group news, insider Mark S. Shapiro sold 19,120 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $194.39, for a total transaction of $3,716,736.80. Following the completion of the transaction, the insider directly owned 147,071 shares of the company’s stock, valued at approximately $28,589,131.69. This represents a 11.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nick Khan sold 9,189 shares of the company’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $175.19, for a total value of $1,609,820.91. Following the transaction, the director directly owned 20,162 shares in the company, valued at $3,532,180.78. This represents a 31.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, 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.

Institutional Investors Weigh In On TKO Group

Several large investors have recently added to or reduced their stakes in the company. Bank of America Corp DE raised its stake 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 valued at $281,045,000 after acquiring an additional 256,305 shares during the period. Annex Advisory Services LLC raised its position 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 purchasing an additional 5,483 shares during the period. Hawk Ridge Capital Management LP lifted its stake in shares of TKO Group by 16.5% during the 1st quarter. Hawk Ridge Capital Management LP now owns 413,641 shares of the company’s stock valued at $83,411,000 after buying an additional 58,604 shares in the last quarter. Cat Rock Capital Management LP lifted its stake in shares of TKO Group by 10.7% during the 2nd quarter. Cat Rock Capital Management LP now owns 339,211 shares of the company’s stock valued at $68,287,000 after buying an additional 32,700 shares in the last quarter. Finally, Braun Stacey Associates Inc. lifted its stake in shares of TKO Group by 7.7% during the 2nd quarter. Braun Stacey Associates Inc. now owns 138,509 shares of the company’s stock valued at $27,883,000 after buying an additional 9,924 shares in the last quarter. 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 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.