TKO Group Holdings, Inc. Investment Analysis - January 2026

Company Overview

TKO Group Holdings, Inc. (NYSE: TKO), headquartered in New York, operates within the entertainment industry, specifically in the communication services sector. Established in 2023 as a subsidiary of Endeavor Group Holdings, TKO is engaged in managing sports and entertainment intellectual property, producing and licensing live events, and creating content, including reality series for both digital and linear channels. Its notable offerings include UFC FIGHT PASS, a direct-to-consumer streaming service, and a diverse range of merchandise, such as video games, apparel, and memorabilia. Additionally, TKO is active in sponsorship and advertising, providing valuable assets for in-venue and in-broadcast promotions. This blend of media and merchandise highlights TKO's strategic positioning in a growing entertainment landscape.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Over the past year, TKO Group Holdings has experienced a remarkable price performance, with a significant increase of approximately 48.62%. The stock has demonstrated a clear bullish trend, highlighted by an ascending green trend line on the 52-week price chart. As of January 2, 2026, the current stock price stands at $208.13, comfortably above the 50-day moving average of $194.92, indicating positive momentum.

Key technical levels were identified during the analysis:

• Support Level: The price has shown consistent support around $140, as identified by the red dashed line, which has held firm throughout the past year.
• Resistance Level: Currently, the price is approaching the resistance level near $209, which is pivotal for further price appreciation.

The stock has shown resilience with higher highs and higher lows, a classic bullish indicator, and it has managed to recover quickly after minor pullbacks. Of note, December 24, 2025, saw the stock reach an all-time high of $217.52. The proximity to this level suggests that if TKO can break above the $209 resistance, it may continue its upward trajectory towards its target high price of $250.00.

The momentum indicators confirm the strong upward trend, and the consistent trading above the moving average strengthens the overall bullish outlook.

Financial Performance and Metrics

TKO Group's financial performance reflects its strong operational model, with total revenues reported at approximately $2.55 billion and an impressive EBITDA of around $1.05 billion. The company's profits and valuation metrics bolster investor confidence in its future growth trajectory. The key performance indicators include:

• Earnings per Share (EPS): For Q3, TKO reported an EPS of $0.50, slightly below the consensus estimate of $0.55.
• Revenue: TKO achieved revenues of $1.12 billion in Q3, surpassing expectations by 4.13%.
• Total Shares Outstanding: The company has 78,922,362 shares outstanding, with 8,773,591 shares sold short, indicating a 11.88% short interest.

The financial health of TKO is further highlighted by the stock's valuation metrics, making it an attractive choice for investors looking for growth in the entertainment sector.

Recent News and Developments

Recent corporate activities indicate TKO's commitment to enhancing shareholder value which reflects positively on its growth outlook. Notably:

1. An $800 million accelerated share repurchase program was completed in late 2025.
2. A 10b5-1 trading plan was initiated to repurchase up to $174 million in Class A common stock. These steps are part of a broader $2 billion share repurchase authorization announced in October 2024.
3. Endeavor Group Holdings, TKO's parent company, recently increased its stake, acquiring approximately $48.1 million in TKO shares, which signals strong management confidence in the company's future.

The strategic moves are pivotal in enhancing TKO's value proposition to investors and solidifying its market position.

Market Sentiment and Analyst Recommendations

Analyst sentiment around TKO Group is markedly positive, reinforcing the bullish outlook on the stock. Here are key insights:

• Analyst Consensus: The stock has received a "strong buy" recommendation from analysts, symbolizing confidence in its growth prospects.
• Target Prices: Analysts have set a target high price of $250.00, while the average price target is approximately $224.79. The median target stands at $225.00, indicating healthy expected growth.
• Recommendation Mean: With the recommendation mean set at 1.35 from 19 analysts, this suggests a clear preference for TKO as a viable purchase option.

Despite the positive sentiment, investors should stay alert for the significant 8.8% short interest, which indicates market skepticism about the stock's upward potential. Consequently, if trends shift, it may increase volatility around the stock.

Conclusion

In conclusion, TKO Group Holdings, Inc. stands out as a compelling investment opportunity in the entertainment sector, underpinned by robust financial performance, strategic corporate actions, and positive analyst recommendations. The current stock price of $208.13 is positioned well against strong support levels and bullish momentum indicators.

Investors should take note of the potential upside as TKO takes strides toward reaching its target price. However, it remains essential to monitor short interest trends and overall market conditions that could impact stock performance.

With its solid foundation and growth-oriented strategies, TKO Group Holdings is certainly worth considering for investors seeking exposure in the dynamic and evolving entertainment landscape.