Q1 Earnings Estimates Revised for TKO Group by Seaport Res Ptn

TKO Group Holdings, Inc. (NYSE:TKO – Free Report) has recently seen a change in its projected earnings for the first quarter of 2025. In a research report published on Tuesday, March 4th, Seaport Res Ptn announced a reduction in their earnings estimate for the company. Analyst D. Joyce now predicts that TKO Group will earn $0.44 per share for Q1 2025. This figure marks a decrease from their earlier estimate of $0.90 per share.

Furthermore, Seaport Res Ptn has maintained a "Strong-Buy" rating on TKO Group’s stock. The projected earnings for the company's current full year have been estimated at $3.88 per share. In addition to the Q1 projections, Seaport Res Ptn outlined expectations for TKO Group’s earnings in subsequent quarters: a forecast of $0.91 per share for Q2 2025, $0.53 for Q3 2025, and $0.35 for Q4 2025. The total earnings for FY2025 are projected to be $2.20 per share. Looking ahead to 2026, projections include $0.87 for Q1, $1.15 for Q2, $1.04 for Q3, and $0.47 for Q4, with an annual forecast of $3.51 per share.

A variety of other brokerages have also provided analyses of TKO Group. For instance, Morgan Stanley increased their target price on TKO Group from $128.00 to $160.00, assigning an "equal weight" rating in a report released on February 24th. Citigroup also raised their target price, moving it from $137.00 to $170.00, and assigning a "buy" rating in their note from December 17th. Meanwhile, Benchmark re-confirmed a "hold" rating in a report dated March 3rd. Guggenheim has set a higher price target of $175.00, while JPMorgan Chase & Co. modified their target from $137.00 to $158.00 with an "overweight" rating in December.

According to MarketBeat.com, the overall consensus on TKO Group's stock includes two analysts giving a hold rating, eleven assigning a buy rating, and one issuing a strong buy. The average price target established by analysts stands at $157.00, reflecting a generally positive outlook.

Stock Performance Overview

As of Friday, TKO Group stock opened at $143.39. Over the past year, the stock has experienced a low of $79.32 and a high of $179.09. The company showcases a debt-to-equity ratio of 0.34, along with a current ratio and quick ratio both pegged at 1.17. TKO Group has a market capitalization of $24.49 billion, a price-to-earnings ratio of -341.40, and a beta of 1.08. The recent fifty-day moving average stands at $153.64, while the 200-day moving average is $136.25.

Institutional Investor Activities

Recent movements among hedge funds and institutional investors have shown an increase in activity regarding TKO Group. Vanguard Group Inc., for example, raised its stake by 1.7% during the fourth quarter, now owning approximately 6.68 million shares valued at around $949 million. Similarly, Ninety One UK Ltd increased its holdings by 4.1%, bringing their total to about 4.15 million shares worth $590 million.

Other notable institutional actions include Independent Franchise Partners LLP enhancing their stake by 7.4%, while State Street Corp and Massachusetts Financial Services Co. MA also raised their investments in the company in previous quarters. Overall, institutional investors and hedge funds control around 89.79% of TKO Group's stock.

Insights on Insider Transactions

In terms of insider activity, CAO Shane Kapral recently sold 1,034 shares at an average price of $141.94, totaling approximately $146,765. Following this transaction, Kapral’s direct ownership decreased to 2,225 shares. On the other hand, major shareholder Patrick Whitesell acquired 31,352 shares at an average price of $142.03, increasing his ownership to about 1.67 million shares valued at approximately $237.8 million.

Quarterly Dividend Announcement

Additionally, TKO Group has declared a quarterly dividend of $0.38 per share, which is scheduled to be paid on March 31st to shareholders on record as of March 14th. This dividend translates to an annual yield of approximately 1.06%, reflecting a payout policy that is notably high at 7,600%.

About TKO Group Holdings, Inc.

TKO Group Holdings operates within the sports and entertainment sector. The company specializes in producing and licensing a variety of live events, television programs, and related content across both digital and linear channels. Their business also encompasses merchandising areas including video games, apparel, collectibles, and travel package sales.

Earnings, Stock, Analysis