TKO Group (NYSE:TKO) Announces Quarterly Earnings Results

TKO Group (NYSE:TKO) announced its quarterly earnings data on Wednesday. The company reported $0.47 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.58 by ($0.11), FiscalAI reports. TKO Group had a net margin of 5.40% and a return on equity of 2.82%. The company had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.12 billion. During the same period in the prior year, the firm earned $0.28 earnings per share. The firm’s quarterly revenue was down 27.3% on a year-over-year basis. TKO Group updated its FY 2025 guidance to EPS.

TKO Group Stock Down 3.9%

Shares of NYSE:TKO traded down $7.38 during trading on Thursday, reaching $179.86. 558,308 shares of the company traded hands, compared to its average volume of 1,257,477. The firm has a fifty day simple moving average of $193.42 and a 200 day simple moving average of $177.49. The firm has a market cap of $35.66 billion, a P/E ratio of 74.18 and a beta of 0.72. TKO Group has a 1-year low of $115.12 and a 1-year high of $212.49. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28.

TKO Group Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 15th were paid a dividend of $0.76 per share. This is an increase from TKO Group’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend was Monday, September 15th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 1.7%. TKO Group’s dividend payout ratio (DPR) is 125.62%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings restated a “hold (c+)” rating on shares of TKO Group in a research note on Tuesday, October 14th. Northcoast Research lowered shares of TKO Group from a “buy” rating to a “neutral” rating in a research note on Thursday, July 10th. Morgan Stanley increased their price objective on shares of TKO Group from $165.00 to $205.00 and gave the company an “equal weight” rating in a report on Thursday, September 25th. Sanford C. Bernstein increased their price objective on shares of TKO Group from $190.00 to $230.00 and gave the company an “outperform” rating in a report on Monday, October 6th. Finally, BTIG Research started coverage on shares of TKO Group in a report on Monday, October 6th. They issued a “buy” rating and a $235.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $218.46.

Insiders Place Their Bets

In other TKO Group news, Director Peter C. B. Bynoe purchased 740 shares of the business’s stock in a transaction dated Tuesday, September 16th. The shares were acquired at an average price of $203.00 per share, for a total transaction of $150,220.00. Following the acquisition, the director owned 5,187 shares of the company’s stock, valued at $1,052,961. This trade represents a 16.64% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Nick Khan sold 9,519 shares of the firm’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $188.26, for a total transaction of $1,792,046.94. Following the transaction, the director owned 118,504 shares in the company, valued at $22,309,563.04. This represents a 7.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 28,557 shares of company stock valued at $5,449,723 in the last three months. Company insiders own 53.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Advisory Services Network LLC bought a new position in TKO Group in the 2nd quarter worth $460,000. Geneos Wealth Management Inc. increased its holdings in shares of TKO Group by 14.1% during the 2nd 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. CYBER HORNET ETFs LLC bought a new position in shares of TKO Group during the 2nd quarter worth about $34,000. MUFG Securities EMEA plc bought a new position in shares of TKO Group during the 2nd quarter worth about $36,000. Finally, Corient Private Wealth LLC increased its holdings in shares of TKO Group by 39.0% during the 2nd quarter. Corient Private Wealth LLC now owns 8,566 shares of the company’s stock worth $1,559,000 after purchasing an additional 2,402 shares during the period. Institutional investors own 89.79% of the company’s stock.

TKO Group announced that its Board of Directors has initiated a share repurchase plan on Monday, September 15th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the company to buy up to 2.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s leadership believes its stock is undervalued.

TKO Group Company Profile

TKO Group Holdings, Inc operates as a sports and entertainment company. The company produces and licenses live events, television programs, and long-form and short-form content, reality series, and other filmed entertainment on digital and linear channels and via pay-per-view. It is involved in the merchandising of video games, apparel, equipment, trading cards, memorabilia, digital goods, and toys, as well as sale of travel packages and tickets.