Principal Financial Group Inc. has significantly reduced its stake in TKO Group Holdings, Inc., known by its NYSE ticker TKO, by 57.2% during the third quarter, as reported in its latest Form 13F filing with the Securities and Exchange Commission. The institutional investor now holds 399,373 shares of TKO Group’s stock, followed by the divestment of 533,303 shares during the same period. At the close of the last quarter, Principal Financial Group’s stake represented about 0.20% of TKO Group, valued at approximately $80.7 million.
Other institutional investors have also adjusted their positions in the company. Congress Asset Management Co. increased its stake in TKO Group by 20.9%, now owning 545,079 shares worth around $110 million after acquiring an additional 94,100 shares. Moran Wealth Management LLC has grown its position by a remarkable 95.2%, holding 39,043 shares valued at about $7.9 million after purchasing 19,040 new shares. Nisa Investment Advisors LLC expanded its stake by 558.3%, now owning 33,342 shares worth approximately $6.7 million. First Citizens Bank & Trust Co. increased its holdings by 387.1%, now with 7,691 shares valued at $1.4 million, while Rakuten Investment Management Inc. has established a new position worth approximately $2.7 million in TKO Group. Collectively, hedge funds and other institutional investors own 89.79% of the company’s stock.
On the trading front, TKO Group’s stock saw a slight increase of 1.4%, opening at $203.27. The firm boasts a market capitalization of $39.65 billion, a P/E ratio of 77.88, and a beta value of 0.65, indicating comparatively lower volatility relative to the broader market. TKO Group has maintained a debt-to-equity ratio of 0.42 alongside a current and quick ratio of 1.46. Its stock market performance over the past year has experienced fluctuations, with a fifty-two week low of $133.07 and a high of $218.11.
In its most recent earnings report, TKO Group disclosed an earnings per share (EPS) of $0.47 for the quarter ending on November 5, falling short of analysts’ expectations of $0.58 by $0.11. The company reported revenue of $1.12 billion, aligning with consensus estimates but reflecting a year-over-year decline of 27.3%. Despite this, TKO Group reported a return on equity of 2.57% and a net margin of 5.27%. Analysts project an EPS of 3.88 for the current fiscal year.
Moreover, TKO Group recently announced an increase in its quarterly dividend, which went up from $0.76 to $0.78 per share. The recent dividend was paid out on December 30 to shareholders recorded on December 15, representing an annualized yield of 1.5%. TKO Group’s current dividend payout ratio stands at 119.54%.
In insider trading news, CFO Shane Kapral recently sold 616 shares at an average price of $202.04, amounting to a transaction value of approximately $124,457. Following this sale, Kapral holds 2,817 shares valued at around $569,147. Additionally, insider Mark S. Shapiro sold 14,363 shares at an average price of $201.98, totaling about $2.9 million. The company’s insiders have collectively divested 167,862 shares, valued at over $34 million in the last 90 days, yet they still control 53.80% of the shares.
On the research side, various analysts have provided insights into the company. Zacks Research downgraded TKO Group from “strong-buy” to “hold.” In contrast, TD Cowen reiterated a “buy” rating, and Wolfe Research maintains an “outperform” score with a target price of $227. Pivotal Research raised its price target to $235 while giving a “buy” rating. Approximately fourteen analysts rate TKO Group as a “Buy,” with an average target price set at $227.73.
TKO Group Holdings, formed in 2023, combines the UFC and WWE under a single publicly traded entity, positioning itself as a key player in the global sports and entertainment sector with a focus on live events, media rights, and branded consumer products. This strategic union anticipates enhanced growth opportunities within the rapidly evolving sports entertainment landscape, potentially benefiting stakeholders in the long run.