Munro Partners Buys New Position in TKO Group Holdings, Inc. $TKO

Munro Partners purchased a new position in TKO Group Holdings, Inc. (NYSE:TKO) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund purchased 360,926 shares of the company’s stock, valued at approximately $65,670,000. TKO Group makes up approximately 2.1% of Munro Partners’ holdings, making the stock its 22nd largest holding.

A number of other institutional investors have also recently made changes to their positions in the stock. Sumitomo Mitsui DS Asset Management Company Ltd lifted its position in TKO Group by 368.8% in the second quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 49,186 shares of the company’s stock valued at $8,949,000 after purchasing an additional 38,695 shares during the last quarter. Ninety One UK Ltd increased its stake in shares of TKO Group by 14.4% in the second quarter. Ninety One UK Ltd now owns 4,850,006 shares of the company’s stock worth $882,459,000 after buying an additional 611,233 shares during the period. Hawk Ridge Capital Management LP raised its holdings in TKO Group by 2.1% during the 1st quarter. Hawk Ridge Capital Management LP now owns 734,274 shares of the company’s stock valued at $112,204,000 after buying an additional 14,760 shares during the last quarter. Empowered Funds LLC purchased a new stake in TKO Group during the 1st quarter valued at $6,138,000. Finally, Royal Bank of Canada grew its holdings in TKO Group by 26.6% in the 1st quarter. Royal Bank of Canada now owns 115,502 shares of the company’s stock worth $17,650,000 after acquiring an additional 24,245 shares during the last quarter. Institutional investors own 89.79% of the company’s stock.

TKO Group Stock Performance

TKO Group stock opened at $207.80 on Friday. TKO Group Holdings, Inc. has a fifty-two week low of $133.07 and a fifty-two week high of $212.49. The stock’s 50 day simple moving average is $189.53 and its two-hundred day simple moving average is $183.06. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.46 and a current ratio of 1.46. The stock has a market cap of $40.54 billion, a price-to-earnings ratio of 79.62 and a beta of 0.65.

TKO Group (NYSE:TKO) last released its earnings results on Wednesday, November 5th. The company reported $0.47 EPS for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.11). TKO Group had a net margin of 5.27% and a return on equity of 2.57%. The firm had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter in the previous year, the business earned $0.28 EPS. The company’s revenue for the quarter was down 27.3% compared to the same quarter last year. As a group, analysts expect that TKO Group Holdings, Inc. will post 3.88 earnings per share for the current fiscal year.

TKO Group Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 30th. Stockholders of record on Monday, December 15th will be issued a dividend of $0.78 per share. This is a boost from TKO Group’s previous quarterly dividend of $0.76. The ex-dividend date is Monday, December 15th. This represents a $3.12 dividend on an annualized basis and a dividend yield of 1.5%. TKO Group’s dividend payout ratio (DPR) is presently 116.48%.

TKO Group announced that its Board of Directors has approved a share repurchase program on Monday, September 15th that authorizes the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization authorizes the company to purchase up to 2.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages have recently commented on TKO. Cowen reaffirmed a “buy” rating on shares of TKO Group in a research note on Monday, December 8th. JPMorgan Chase & Co. upped their price target on TKO Group from $218.00 to $220.00 and gave the company an “overweight” rating in a research report on Tuesday, December 2nd. Pivotal Research increased their price objective on TKO Group from $225.00 to $235.00 and gave the stock a “buy” rating in a report on Thursday, November 6th. UBS Group boosted their target price on TKO Group from $200.00 to $235.00 and gave the company a “buy” rating in a research note on Wednesday, September 17th. Finally, Sanford C. Bernstein upped their target price on TKO Group from $190.00 to $230.00 and gave the company an “outperform” rating in a report on Monday, October 6th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $224.50.

Insider Transactions at TKO Group

In related news, Director Nick Khan sold 9,519 shares of the business’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $195.16, for a total transaction of $1,857,728.04. Following the sale, the director owned 108,985 shares of the company’s stock, valued at $21,269,512.60. The trade was a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Peter C. B. Bynoe bought 740 shares of the firm’s stock in a transaction on 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 purchase, the director directly owned 5,187 shares of the company’s stock, valued at approximately $1,052,961. This represents a 16.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have sold 29,573 shares of company stock valued at $5,725,130 in the last three months. 61.30% of the stock is currently owned by company insiders.

TKO Group 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.