1. TKO Group Holdings, Inc. (NYSE:TKO)
Number of Hedge Fund Holders as of Q4: 54
XN Exponent Advisors LLC’s Equity Stake: $373.50 Million
TKO Group Holdings, Inc. (NYSE:TKO), a prominent American media conglomerate, was formed through the merger of World Wrestling Entertainment (WWE) and Zuffa, LLC, the parent company of the Ultimate Fighting Championship (UFC). Headquartered in Stamford, Connecticut, TKO specializes in producing and licensing a wide range of content, including live events, television programming, reality series, and digital media.
Expanding its influence beyond wrestling and mixed martial arts, TKO Group Holdings, Inc. (NYSE:TKO) is venturing into the boxing industry through a new partnership with Saudi Arabia. The company has signed a multiyear agreement with Turki Alalshikh, chairman of the Saudi General Entertainment Authority, and Sela, a subsidiary of the Saudi Public Investment Fund. Under this partnership, TKO will oversee the promotion’s daily operations, with UFC President Dana White and WWE President Nick Khan leading the initiative. The inaugural event is slated for 2026, with participating boxers gaining access to UFC Performance Institutes in Las Vegas, Mexico City, and Shanghai.
Financially, TKO Group Holdings, Inc. (NYSE:TKO) delivered a strong performance in 2024, reporting fourth-quarter revenue of $642.2 million and a net income of $47.5 million. For the full year, the company generated $2.804 billion in revenue, with an adjusted EBITDA of $1.25 billion. Looking ahead to 2025, TKO projects revenue between $2.93 billion and $3 billion, with an expected adjusted EBITDA ranging from $1.35 billion to $1.39 billion. This steady financial growth underscores the company’s ability to expand its market presence while maintaining profitability.
In addition to its expansion into boxing, TKO Group Holdings, Inc. (NYSE:TKO) has announced its first quarterly cash dividend since launching its capital return program. The company plans to distribute approximately $75 million, equating to $0.38 per share, to Class A common stockholders. The dividend will be paid on March 31, 2025, to shareholders of record as of March 14, 2025. With strong financial performance, strategic partnerships, and continuous growth in the global sports entertainment market, TKO remains a compelling investment opportunity for those looking to capitalize on the evolving landscape of combat sports.
In Q4 2024, XN Exponent Advisors LLC increased its stake in the company by 13%. From its previous holding of 2.3 million shares in Q3, the hedge fund held approximately 2.6 million shares of TKO Group Holdings, Inc. (NYSE:TKO) by the end of Q4, valued at over $373 million. Hedge fund interest in the company also increased, with 54 out of 1,009 funds tracked by Insider Monkey holding positions worth nearly $2.12 billion by the end of quarter Q4, up from 42 funds in Q3.
Overall, TKO Group Holdings, Inc. (NYSE:TKO) ranks first on our list of top 10 stocks to buy according to XN Exponent Advisors LLC. While we acknowledge the potential for TKO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TKO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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