Roth Capital Has Negative View of TKO Group FY2025 Earnings

TKO Group Holdings, Inc. (NYSE:TKO) – Equities researchers at Roth Capital decreased their FY2025 earnings per share (EPS) estimates for TKO Group in a research note issued to investors on Thursday, November 6th. Roth Capital analyst E. Handler now forecasts that the company will earn $2.17 per share for the year, down from their previous forecast of $2.22. Roth Capital has a “Buy” rating and a $210.00 price target on the stock. The consensus estimate for TKO Group’s current full-year earnings is $3.88 per share. Roth Capital also issued estimates for TKO Group’s Q4 2025 earnings at $0.09 EPS and FY2026 earnings at $2.08 EPS.

TKO Group (NYSE:TKO) last announced its quarterly earnings results on Wednesday, November 5th. The company reported $0.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.58 by ($0.11). TKO Group had a return on equity of 2.82% and a net margin of 5.40%.The business had revenue of $1.12 billion for the quarter, compared to analysts’ expectations of $1.12 billion. During the same period last year, the firm earned $0.28 earnings per share. The firm’s quarterly revenue was down 27.3% on a year-over-year basis. TKO Group has set its FY 2025 guidance at EPS.

A number of other analysts have also recently weighed in on TKO. BTIG Research initiated coverage on shares of TKO Group in a report on Monday, October 6th. They set a “buy” rating and a $235.00 price objective on the stock. Zacks Research cut shares of TKO Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 4th. Bank of America lifted their price target on shares of TKO Group from $200.00 to $210.00 and gave the stock a “buy” rating in a research note on Tuesday, August 12th. Morgan Stanley boosted their price target on shares of TKO Group from $165.00 to $205.00 and gave the company an “equal weight” rating in a research report on Thursday, September 25th. Finally, Seaport Res Ptn raised TKO Group from a “hold” rating to a “strong-buy” rating in a report on Wednesday, October 15th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $222.23.

TKO Group Price Performance

TKO stock opened at $179.62 on Monday. The business has a 50 day moving average price of $192.77 and a 200 day moving average price of $178.51. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.28. The stock has a market cap of $35.62 billion, a price-to-earnings ratio of 74.22 and a beta of 0.72. TKO Group has a fifty-two week low of $115.77 and a fifty-two week high of $212.49.

TKO Group announced that its Board of Directors has approved a share buyback plan on Monday, September 15th that allows the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 2.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s management believes its shares are undervalued.

TKO Group Increases Dividend

The business also recently declared 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 boost from TKO Group’s previous quarterly dividend of $0.38. This represents a $3.04 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Monday, September 15th. TKO Group’s dividend payout ratio is 116.48%.

Insider Buying and Selling at TKO Group

In other TKO Group news, Director Nick Khan sold 9,519 shares of the company’s stock in a transaction on Monday, November 3rd. The shares were sold at an average price of $188.26, for a total transaction of $1,792,046.94. Following the completion of the transaction, the director owned 118,504 shares in the company, valued at approximately $22,309,563.04. This represents a 7.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Peter C. B. Bynoe bought 740 shares of TKO Group stock in a transaction dated Tuesday, September 16th. The stock was purchased at an average price of $203.00 per share, with a total value of $150,220.00. Following the purchase, the director directly owned 5,187 shares in the company, valued at approximately $1,052,961. This trade represents a 16.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have sold 28,557 shares of company stock valued at $5,449,723. Corporate insiders own 61.30% of the company’s stock.

Institutional Investors Weigh In On TKO Group

A number of hedge funds and other institutional investors have recently bought and sold shares of TKO. Vanguard Group Inc. boosted its stake in shares of TKO Group by 19.4% during the 1st quarter. Vanguard Group Inc. now owns 7,976,904 shares of the company’s stock worth $1,218,951,000 after acquiring an additional 1,295,817 shares in the last quarter. Invesco Ltd. increased its stake in TKO Group by 569.7% in the 1st quarter. Invesco Ltd. now owns 1,423,052 shares of the company’s stock valued at $217,457,000 after purchasing an additional 1,210,563 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in TKO Group by 242.6% during the first quarter. Price T Rowe Associates Inc. MD now owns 1,496,462 shares of the company’s stock worth $228,675,000 after purchasing an additional 1,059,636 shares during the last quarter. Norges Bank purchased a new stake in TKO Group during the second quarter worth $132,441,000. Finally, Ninety One UK Ltd boosted its position in TKO Group by 14.4% during the second quarter. Ninety One UK Ltd now owns 4,850,006 shares of the company’s stock worth $882,459,000 after purchasing an additional 611,233 shares in the last quarter. Institutional investors and hedge funds own 89.79% of the company’s stock.

TKO Group Company 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.