Seaport Res Ptn Forecasts Stronger Earnings for TKO Group

TKO Group Holdings, Inc. (NYSE:TKO) – Research analysts at Seaport Res Ptn raised their FY2027 earnings per share estimates for TKO Group in a research report issued to clients and investors on Wednesday, October 15th. Seaport Res Ptn analyst D. Joyce now expects that the company will earn $4.03 per share for the year, up from their prior forecast of $3.97. Seaport Res Ptn currently has a “Strong-Buy” rating on the stock. The consensus estimate for TKO Group’s current full-year earnings is $3.88 per share. Seaport Res Ptn also issued estimates for TKO Group’s FY2028 earnings at $4.99 EPS and FY2029 earnings at $5.38 EPS.

TKO Group (NYSE:TKO) last issued its earnings results on Wednesday, August 6th. The company reported $1.17 earnings per share for the quarter, missing analysts’ consensus estimates of $1.23 by ($0.06). TKO Group had a return on equity of 2.82% and a net margin of 5.40%.The firm had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.23 billion. During the same period in the previous year, the company earned $0.72 earnings per share. TKO Group’s revenue for the quarter was up 53.7% compared to the same quarter last year.

Other equities research analysts have also issued reports about the company. Robert W. Baird increased their price target on TKO Group from $225.00 to $250.00 and gave the company an “outperform” rating in a research report on Tuesday, September 16th. Roth Capital increased their price target on TKO Group from $208.00 to $210.00 and gave the company a “buy” rating in a research report on Tuesday, August 12th. Northcoast Research lowered TKO Group from a “buy” rating to a “neutral” rating in a research report on Thursday, July 10th. Weiss Ratings restated a “hold (c+)” rating on shares of TKO Group in a research note on Tuesday. Finally, Bank of America increased their price target on TKO Group from $200.00 to $210.00 and gave the company a “buy” rating in a research report on Tuesday, August 12th. Three analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, TKO Group presently has an average rating of “Moderate Buy” and a consensus price target of $210.21.

TKO Group Price Performance

Shares of NYSE:TKO opened at $188.98 on Friday. 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 has a twelve month low of $114.01 and a twelve month high of $212.49. The stock’s 50 day moving average is $193.02 and its 200-day moving average is $173.42. The firm has a market capitalization of $37.47 billion, a price-to-earnings ratio of 78.09 and a beta of 0.76.

TKO Group declared that its board has initiated a stock repurchase program on Monday, September 15th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 2.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

TKO Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 15th were issued a dividend of $0.76 per share. This is a positive change 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 yield of 1.6%. TKO Group’s payout ratio is currently 125.62%.

Insider Transactions at TKO Group

In other TKO Group news, Director Peter C. B. Bynoe purchased 740 shares of the stock in a transaction on Tuesday, September 16th. The shares were purchased at an average price of $203.00 per share, with a total value of $150,220.00. Following the acquisition, the director directly owned 5,187 shares in the company, valued at approximately $1,052,961. The trade was a 16.64% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Nick Khan sold 9,519 shares of the firm’s stock in a transaction dated Friday, October 3rd. The shares were sold at an average price of $197.82, for a total value of $1,883,048.58. Following the completion of the sale, the director directly owned 128,023 shares in the company, valued at approximately $25,325,509.86. The trade was a 6.92% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 73,725 shares of company stock worth $12,966,373 in the last three months. 61.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On TKO Group

Large investors have recently modified their holdings of the company. Somerset Trust Co grew its position in TKO Group by 2.5% during the 3rd quarter. Somerset Trust Co now owns 2,155 shares of the company’s stock worth $435,000 after acquiring an additional 53 shares during the last quarter. CWM LLC grew its position in TKO Group by 7.3% during the 3rd quarter. CWM LLC now owns 796 shares of the company’s stock worth $161,000 after acquiring an additional 54 shares during the last quarter. Howe & Rusling Inc. grew its position in TKO Group by 4.7% during the 2nd quarter. Howe & Rusling Inc. now owns 1,603 shares of the company’s stock worth $292,000 after acquiring an additional 72 shares during the last quarter. Geneos Wealth Management Inc. grew its position in 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 acquiring an additional 72 shares during the last quarter. Finally, CreativeOne Wealth LLC grew its position in TKO Group by 3.0% during the 2nd quarter. CreativeOne Wealth LLC now owns 2,503 shares of the company’s stock worth $455,000 after acquiring an additional 73 shares during the last quarter. 89.79% of the stock is owned by hedge funds and other institutional investors.

About TKO Group

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.