TKO Group's Q1 Earnings Estimates Revised Down by Seaport Res Ptn

TKO Group Holdings, Inc. (NYSE:TKO – Free Report) saw its Q1 2025 earnings estimates lowered by Seaport Res Ptn in a research report released on Tuesday, March 4th. Analyst D. Joyce now expects the company to report earnings of $0.44 per share for the upcoming quarter, a significant drop from the prior forecast of $0.90 per share.

Despite this adjustment, Seaport Res Ptn maintains a "Strong-Buy" rating on TKO Group's stock. Currently, the consensus estimate for the company's earnings across the full year stands at $3.88 per share. Additionally, earnings estimates for the following quarters have also been provided: Q2 2025 at $0.91 EPS, Q3 2025 at $0.53 EPS, Q4 2025 at $0.35 EPS, and for the entire FY2025, earnings are forecasted at $2.20 EPS. Looking forward to 2026, estimates include Q1 earnings at $0.87 EPS, Q2 at $1.15 EPS, Q3 at $1.04 EPS, Q4 at $0.47 EPS, and total FY2026 projected earnings at $3.51 EPS.

Several other financial firms have also commented on TKO Group. Morgan Stanley recently raised its target price for TKO Group from $128.00 to $160.00 while assigning an "equal weight" rating. Similarly, Citigroup raised its target price from $137.00 to $170.00 and provided a "buy" rating. Benchmark reiterated a "hold" rating on March 3rd, while Guggenheim lifted its price objective to $175.00, maintaining a "buy" rating. On December 12th, JPMorgan Chase & Co. boosted its target price from $137.00 to $158.00, also issuing an "overweight" rating.

Overall, analysts show a positive sentiment towards the stock, with two rating it as a hold, eleven giving buy ratings, and one assigning a strong buy rating. According to MarketBeat.com, TKO Group holds a consensus rating of "Moderate Buy" with an average price target set at $157.00.

Stock Performance of TKO Group

As of Friday, TKO Group stock opened at $143.39. Over the past year, the stock has fluctuated, recording a low of $79.32 and a high of $179.09. The company’s current ratios demonstrate strong liquidity, with a debt-to-equity ratio of 0.34, and both a current and quick ratio of 1.17. TKO Group’s total market capitalization is approximately $24.49 billion, while the price-to-earnings ratio stands at -341.40, paired with a beta of 1.08. Moving averages indicate a fifty-day price of $153.64 and a 200-day average of $136.25.

Institutional Investors' Involvement

Recent changes in stakes by institutional investors also highlight interest in TKO Group. Vanguard Group Inc. increased its holdings by 1.7% during the fourth quarter, now owning 6,681,087 shares valued at around $949 million. Ninety One UK Ltd raised its position by 4.1%, now possessing 4,151,608 shares worth approximately $590 million. Similarly, Independent Franchise Partners LLP saw a 7.4% uplift in stake, now controlling 3,409,140 shares valued at about $484 million. State Street Corp and Massachusetts Financial Services Co. also increased their stakes in the company.

In total, institutional investors and hedge funds hold approximately 89.79% of TKO Group’s stock, reflecting strong institutional confidence.

Insider Transactions Observed

In other developments, TKO Group’s Chief Accounting Officer, Shane Kapral, sold 1,034 shares on January 3rd at an average price of $141.94, totaling $146,765.96. Post-transaction, Kapral retains ownership of 2,225 shares valued at $315,816.50, marking a 31.73% reduction in ownership. Meanwhile, major shareholder Patrick Whitesell bought 31,352 shares on December 11th for $4,452,924.56, which represents a 1.91% increase in his holdings to 1,674,322 shares valued at $237.8 million.

In the last three months, insider transactions reveal a notable purchase of 2,498,297 shares worth about $387.67 million while selling 71,457 shares for $10.15 million, indicating active management of insider investments.

Recent Dividend Announcement by TKO Group

Additionally, TKO Group recently declared a quarterly dividend of $0.38 per share, scheduled for payment on March 31st, to investors holding stock as of March 14th. This translates to an annualized dividend of $1.52, resulting in a dividend yield of 1.06%. The upcoming ex-dividend date is set for March 14th. Interestingly, TKO Group's payout ratio stands at a staggering 7,600.00%, highlighting a robust return to its shareholders.

About TKO Group Holdings, Inc.

TKO Group Holdings, Inc. functions primarily in the sports and entertainment domain, producing and licensing a range of live events, television programs, and various content types. Its operations extend to merchandising video games, apparel, and memorabilia, along with sales of travel packages and tickets.

Earnings, Stocks, Investments