Emanuel Ariel, the Chief Executive Officer of TKO Group Holdings, Inc. (NYSE:TKO), has made significant purchases of the company's Class A common stock, according to a recent SEC filing. Over the course of several transactions from February 5 to February 7, Ariel acquired a total of 341,438 shares through Endeavor Operating Company, LLC. The transactions, conducted under a pre-established trading plan, amounted to approximately $54.18 million, with purchase prices ranging between $158.14 and $167.79 per share. The timing is notable as TKO shares have shown remarkable strength, delivering a 93.61% return over the past year and trading near their 52-week high of $168.25, according to InvestingPro data.
Following these transactions, Ariel's indirect ownership through Endeavor Operating Company, LLC increased to 2,188,966 shares. The purchases were part of a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for buying or selling stock. This plan was adopted on December 17, 2024, and is set to expire by March 31, 2025. With a market capitalization of $28.42 billion and a "GOOD" financial health rating from InvestingPro, TKO has caught analysts' attention, with their consensus price target suggesting further upside potential. InvestingPro subscribers can access 15+ additional investment tips and detailed valuation metrics for TKO.
In other recent news, TKO Group Holdings has been under the spotlight with significant developments. Goldman Sachs and Guggenheim have both maintained a Buy rating for TKO Group, raising their stock targets to $165 and $170 respectively. The adjustments were based on anticipated strong fourth-quarter results for 2024 and robust performance in the company's variable business segment.
Goldman Sachs also slightly raised its Adjusted EBITDA prediction to $237 million, aligning with consensus expectations. Meanwhile, Guggenheim's new projections for the company's adjusted EBITDA in 2025 and 2026 are $1.50 billion and $1.89 billion respectively, surpassing consensus excluding EDR assets.
In other developments, former WWE CEO Vince McMahon settled SEC charges for undisclosed agreements, which led to WWE overstating its net income for 2018 and 2021. Citi maintained its Buy rating on TKO Group and increased the stock's price target from $137.00 to $170.00, citing steady outlook for WWE and an updated forecast for UFC rights.
Lastly, TKO Group Holdings secured a $2.25 billion loan facility from its parent company, Endeavor Group Holdings. This financial arrangement does not constitute indebtedness at TKO itself, as the pledged securities serve as a first-priority lien to the lenders, proportionate to their commitments in the loan agreement. These are among the recent developments impacting TKO Group Holdings.
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