Should Investors Trust The Upside Potential In TKO Group Holdings Inc (TKO)?

TKO Group Holdings Inc (NYSE:TKO) currently has a daily average trading volume of 1.24M but it saw 1067430 shares traded in last market. With a market cap of 8.48B USD, the company’s current market price of $105.08 came rising about 2.78 while comparing to the previous closing price of $102.24. In past 52 weeks, the stock remained buoying in the range of price level as high as $113.69 and as low as $72.33.

Taking a look at 20-day trading activity of TKO Group Holdings Inc (TKO) gives us an average price of $97.62, while its current price level is -7.57% below from 52-week high level whereas it is 45.27% above from lowest level seen by the stock during that period. Simple moving average of 50 days or SMA-50 of the stock’s closing price is $91.90. A closer look into the stock’s movement over the week reveals that its volatility is standing at 2.87% during that period while stretching the period over a month that decreases to 2.20%. It is also necessary to take a look into other indicators of a stock too, to get a better idea about its price movement. And in doing so, we find stock’s 14-day relative strength index (RSI) standing at 78.98 which implies that the stock is in overbought territory.

The company’s shares got several price updates from the analyst firms in past one month and most recent of them is from the TD Cowen which upgraded the stock as “Buy” in its note to investors issued on May 15, 2024, recommending a price target of between $92 and $127 for it. Goldman issued its recommendations for the stock as it initiated the price target for the stock is $102.

Over the week, TKO’s stock price is moving 6.93% up while it is 7.85% when we observe its performance for the past one month. Year-to-date it is 28.81% up and over the past year, the stock is showing an upside performance of 1.78%.

The latest quarterly earnings report issued by the company reported quarterly earnings per share (EPS) of 0.91 beat the consensus estimate of 0.91 for the same. In next quarter, company is expected to be making quarterly sales of $688.82M as analysts are expecting the sales for current fiscal year at $2.68B and seeing the company making $2.97B in sales next year. Moreover, analysts are in estimates of $763.55M for current-quarter revenue.

Currently, TKO Group Holdings Inc’s total number of outstanding shares is 82.29M. Company’s return on investment (ROI) stands at -1.24% and return on equity (ROE) at -3.77%. It has a 29.08 of forward P/E ratio. Stock’s beta reads 1.01. Stock has a price to book (P/B) ratio of 2.15 while price to sale or P/S ratio amounts to 4.03. Its return on asset (ROA) is -1.23% on average.