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

TKO Group Holdings, Inc. (NYSE:TKO) shares hit a new 52-week low during trading 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.

Analysts Set New Price Targets

Several research firms recently weighed in on TKO. Guggenheim cut their price objective on TKO Group from $235.00 to $228.00 and set a “buy” rating on the stock in a report 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. JPMorgan Chase & Co. dropped their target price on TKO Group from $225.00 to $222.00 and set an “overweight” rating for the company in a research report on Tuesday, July 21st. Seaport Research Partners reissued a “buy” rating on shares of TKO Group in a research note on Friday, October 9th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of TKO Group in a report on Tuesday, August 4th. Eleven analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, TKO Group presently has an average rating of “Moderate Buy” and an average price target of $232.62.

TKO Group Trading Down 1.4%

The company has a market cap of $32.30 billion, a P/E ratio of 60.00 and a beta of 0.67. The firm’s 50 day moving average is $184.70 and its two-hundred day moving average is $189.75. The company has a quick ratio of 1.28, a current ratio of 1.28 and a debt-to-equity ratio of 0.58.

TKO Group (NYSE:TKO) last announced its 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). The company 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%. The firm’s revenue for the quarter was up 18.2% on a year-over-year basis. During the same period in the prior year, the business earned $1.17 earnings per share. As a group, equities research analysts anticipate that TKO Group Holdings, Inc. will post 4.43 EPS for the current year.

TKO Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Tuesday, September 15th were paid a $0.79 dividend. This represents a $3.16 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Tuesday, September 15th. TKO Group’s payout ratio is currently 110.88%.

Insider Buying and Selling

In other news, Director Nick Khan sold 9,189 shares of the business’s stock in a transaction that occurred 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 owned 20,162 shares in the company, valued at approximately $3,532,180.78. The trade was a 31.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Ariel Emanuel sold 24,702 shares of the business’s 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 transaction, the chief executive officer owned 174,334 shares in the company, valued at $33,888,786.26. This trade represents a 12.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 97,325 shares of company stock valued at $18,798,012. Insiders own 64.30% of the company’s stock.

Institutional Investors Weigh In On TKO Group

Several large investors have recently modified their holdings of TKO. Bank of America Corp DE boosted its position in shares of TKO Group by 22.5% during 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 purchasing an additional 256,305 shares in the last quarter. Annex Advisory Services LLC lifted its stake in 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 period. Hawk Ridge Capital Management LP lifted its stake in TKO Group by 16.5% in the first 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 during the period. Cat Rock Capital Management LP lifted its stake in TKO Group by 10.7% in the second 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 during the period. Finally, Braun Stacey Associates Inc. boosted its holdings 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 worth $27,883,000 after buying an additional 9,924 shares in the last quarter. 89.79% of the stock is currently owned by institutional investors and hedge funds.

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.