TKO Group (NYSE:TKO) Issues Quarterly Earnings Results, Misses Estimates By $0.11 EPS

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

TKO Group Trading Down 0.1%

Shares of TKO traded down $0.18 during midday trading on Friday, hitting $180.82. The stock had a trading volume of 119,685 shares, compared to its average volume of 1,266,594. The business has a 50-day simple moving average of $193.24 and a two-hundred day simple moving average of $177.52. TKO Group has a fifty-two week low of $115.77 and a fifty-two week high of $212.49. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.28. The firm has a market cap of $35.86 billion, a P/E ratio of 74.88 and a beta of 0.72.

TKO Group Increases Dividend

The company also recently disclosed 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 a boost from TKO Group’s previous quarterly dividend of $0.38. This represents a $3.04 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend was Monday, September 15th. TKO Group’s payout ratio is currently 125.62%.

TKO Group announced that its board has approved a share repurchase plan on Monday, September 15th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the company to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

TKO has been the topic of a number of research analyst reports. Morgan Stanley lifted their target price on TKO Group from $165.00 to $205.00 and gave the company an “equal weight” rating in a report on Thursday, September 25th. BTIG Research started coverage on TKO Group in a research report on Monday, October 6th. They set a “buy” rating and a $235.00 target price on the stock. Baird R W upgraded shares of TKO Group to a “strong-buy” rating in a research note on Friday, September 5th. JPMorgan Chase & Co. boosted their price target on TKO Group from $182.00 to $212.00 and gave the company an “overweight” rating in a report on Thursday, August 21st. Finally, Robert W. Baird raised their target price on shares of TKO Group from $225.00 to $250.00 and gave the stock an “outperform” rating in a report on Tuesday, September 16th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $222.23.

Insider Buying and Selling at TKO Group

In related news, Director Peter C. B. Bynoe purchased 740 shares of the company’s stock in a transaction dated Tuesday, September 16th. The shares were acquired at an average cost of $203.00 per share, with a total value of $150,220.00. Following the completion of the purchase, the director owned 5,187 shares of the company’s stock, valued at $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 can be accessed through this hyperlink. Also, Director Nick Khan sold 9,519 shares of TKO Group stock in a transaction dated Wednesday, September 3rd. The shares were sold at an average price of $186.43, for a total value of $1,774,627.17. Following the sale, the director owned 137,456 shares of the company’s stock, valued at approximately $25,625,922.08. This represents a 6.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,557 shares of company stock worth $5,449,723 over the last three months. 53.80% of the stock is owned by insiders.

Institutional Investors Weigh In On TKO Group

A number of large investors have recently bought and sold shares of TKO. 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 valued at $106,000 after acquiring an additional 72 shares during the last quarter. Baird Financial Group Inc. lifted its stake in shares of TKO Group by 3.4% in the second quarter. Baird Financial Group Inc. now owns 2,500 shares of the company’s stock valued at $455,000 after buying an additional 83 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of TKO Group by 16.2% in the second quarter. EverSource Wealth Advisors LLC now owns 859 shares of the company’s stock valued at $156,000 after purchasing an additional 120 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of TKO Group by 0.3% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 56,468 shares of the company’s stock worth $10,274,000 after acquiring an additional 165 shares during the period. Finally, CYBER HORNET ETFs LLC bought a new stake in shares of TKO Group in the 2nd quarter valued at approximately $34,000. 89.79% of the stock is currently owned by 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.