Blue Grotto Capital LLC Sells 169,202 Shares of TKO Group Holdings, Inc. $TKO

Blue Grotto Capital LLC decreased its stake in TKO Group Holdings, Inc. (NYSE:TKO) by 53.0% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 150,000 shares of the company’s stock after selling 169,202 shares during the period. TKO Group accounts for approximately 3.2% of Blue Grotto Capital LLC’s holdings, making the stock its 15th largest position. Blue Grotto Capital LLC’s holdings in TKO Group were worth $31,350,000 as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. M & L Capital Management Ltd bought a new position in shares of TKO Group in the 4th quarter valued at about $2,978,000. American Century Companies Inc. grew its holdings in shares of TKO Group by 35.9% in the 3rd quarter. American Century Companies Inc. now owns 726,149 shares of the company’s stock valued at $146,653,000 after acquiring an additional 191,743 shares in the last quarter. CIBC Bancorp USA Inc. bought a new position in shares of TKO Group in the 3rd quarter valued at about $10,105,000. Perpetual Ltd bought a new position in shares of TKO Group in the 4th quarter valued at about $26,046,000. Finally, Ninety One SA Pty Ltd grew its holdings in shares of TKO Group by 86.2% in the 4th quarter. Ninety One SA Pty Ltd now owns 133,187 shares of the company’s stock valued at $27,836,000 after acquiring an additional 61,657 shares in the last quarter. Institutional investors own 89.79% of the company’s stock.

TKO Group Trading Down 1.2%

Shares of NYSE:TKO opened at $200.92 on Tuesday. TKO Group Holdings, Inc. has a 52-week low of $152.29 and a 52-week high of $226.94. The company has a market capitalization of $39.00 billion, a P/E ratio of 74.97 and a beta of 0.59. The company has a 50-day simple moving average of $193.67 and a 200 day simple moving average of $200.96. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.34 and a current ratio of 1.34.

TKO Group (NYSE:TKO) last issued its earnings results on Wednesday, May 6th. The company reported $1.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.11 by $0.01. The business had revenue of $1.60 billion during the quarter, compared to the consensus estimate of $1.59 billion. TKO Group had a net margin of 4.47% and a return on equity of 2.49%. TKO Group’s revenue was up 25.9% on a year-over-year basis. During the same period last year, the business posted $0.69 EPS. Sell-side analysts forecast that TKO Group Holdings, Inc. will post 4.96 earnings per share for the current year.

TKO Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be given a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a yield of 1.6%. This is a boost from TKO Group’s previous quarterly dividend of $0.78. The ex-dividend date is Monday, June 15th. TKO Group’s dividend payout ratio (DPR) is 116.42%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on TKO shares. Weiss Ratings upgraded TKO Group from a “hold (c-)” rating to a “hold (c+)” rating in a report on Thursday, May 7th. Citizens Jmp started coverage on TKO Group in a report on Monday, March 30th. They issued a “mkt outperform” rating and a $240.00 price objective for the company. TD Cowen raised their price objective on TKO Group from $245.00 to $250.00 and gave the company a “buy” rating in a report on Wednesday, March 11th. UBS Group raised their price objective on TKO Group from $235.00 to $238.00 and gave the company a “buy” rating in a report on Thursday, February 26th. Finally, Wolfe Research reiterated a “peer perform” rating on shares of TKO Group in a research note on Thursday, March 5th. Eleven equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $233.73.

Insider Activity at TKO Group

In related news, CEO Ariel Emanuel acquired 10,805 shares of the business’s stock in a transaction on Wednesday, May 13th. The stock was purchased at an average cost of $185.09 per share, for a total transaction of $1,999,897.45. Following the completion of the transaction, the chief executive officer directly owned 154,655 shares of the company’s stock, valued at approximately $28,625,093.95. The trade was a 7.51% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark S. Shapiro acquired 10,807 shares of the business’s stock in a transaction on Wednesday, May 13th. The shares were bought at an average price of $185.05 per share, with a total value of $1,999,835.35. Following the completion of the transaction, the insider directly owned 129,207 shares of the company’s stock, valued at approximately $23,909,755.35. The trade was 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 three months, insiders have bought 24,308 shares of company stock valued at $4,499,679. 64.30% of the stock is currently owned by insiders.

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.