Insider Activity Report: TKO Group Holdings (TKO)

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Ariel Emanuel, CEO and major shareholder of TKO Group Holdings (TKO), recently bought 350,017 shares. The buy increased her stake by 14%, and came to a total cost of $50,281,340.

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  • This is the first insider buy in nearly a year, when Emanuel bought 526,400 shares for just over $77.4 million. Otherwise, several company insiders have been slight sellers of TKO over the past year, with all of the sales occurring following the exercise of stock options.

    Overall, TKO Group Holdings insiders own 15.5% of shares.

    The sports and entertainment company has rallied over 80% in the past year. Operationally, TKO has had mixed performance. Earnings growth has been cut in half, but revenue growth has jumped 52%.

    On a valuation basis, shares are somewhat expensive, trading at 42 times forward earnings. However, TKO’s intellectual properties include the WWE and UFC, sports that boast over 1 billion combined fans worldwide.

  • Special: $1,300 into $45,000 in just 4 MONTHS?!
  • Action to take: While shares are expensive on a valuation basis, the market cap of less than $15 billion looks on the low side for those sports franchises. Momentum investors may like shares as a further growth play from here.

    For traders, with shares in a strong uptrend, the May $160 calls, last trading for about $7.10, could see mid-to-high double-digit returns in the months ahead.

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

  • Special: Every Time the Government Releases Jobs Data... Make This Trade the Night Before!