TKO Group (NYSE: TKO) has received a “Peer Perform” rating from Wolfe Research, as announced in a research report released on Thursday. This rating comes as part of a series of assessments by various financial analysts regarding the company’s stock performance.
Analyst Ratings and Price Targets
In recent evaluations, several investment firms have adjusted their price targets for TKO Group. Morgan Stanley set a target price of $210.00 on December 18, while Susquehanna reiterated a “positive” rating with a higher target of $251.00 on January 19. TD Cowen maintained a “buy” rating in a report issued on December 8, and JPMorgan Chase & Co. raised their price objective from $220.00 to $225.00 on January 21, giving the company an “overweight” rating. Additionally, UBS Group increased their target from $235.00 to $238.00, also rating the stock as a “buy.”
Overall, thirteen analysts have rated TKO Group with a “Buy” rating, while six have issued a “Hold” rating. The average rating stands at “Moderate Buy,” with a consensus price target of $231.40, according to data from MarketBeat.com.
Financial Performance and Dividend Announcement
TKO Group’s recent earnings report, released on February 25, revealed a loss of $0.08 earnings per share (EPS), falling short of the $0.12 consensus estimate by $0.20. The company reported revenues of $1.04 billion, surpassing the expected $1.02 billion. This figure represents an 11.9% increase compared to the same quarter last year. The previous year, TKO Group posted an EPS of $0.28.
Looking ahead, analysts forecast an EPS of 3.88 for the current fiscal year. Additionally, TKO Group announced a quarterly dividend of $0.78, set to be paid on March 31, 2024, to shareholders on record by March 16. This dividend translates to an annualized basis of $3.12 and a yield of 1.5%, although the company’s payout ratio is currently at 138.67%.
Insider Activity and Institutional Investments
In related news, Shane Kapral, Chief Financial Officer, sold 616 shares on March 3 at an average price of $221.91, resulting in a transaction worth $136,696.56. Following this sale, Kapral holds 353 shares valued at approximately $78,334.23, marking a 63.57% decrease in his position.
Similarly, Nick Khan, a director, sold 9,518 shares on the same day at an average price of $220.29, totaling $2,096,720.22. Khan now owns 110,048 shares, valued at about $24,242,473.92, representing a 7.96% decrease in ownership. Over the last ninety days, insiders have sold a total of 169,563 shares, amounting to $34,642,745.
Institutional investors continue to play a significant role in TKO Group’s stock. Recently, OCONNOR A Distinct Business Unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings by 150.0%, now owning 15,000 shares valued at $3,135,000 after acquiring an additional 9,000 shares. Other firms have also increased their stakes, with a significant percentage of 89.79% of the stock owned by hedge funds and institutional investors.
As TKO Group continues to navigate its financial landscape, the upcoming earnings forecasts and dividend payouts will be closely monitored by investors and analysts alike.
