Seaport Research Partners Downgrades TKO Group Holdings (TKO) to Neutral
Seaport Global Securities has downgraded TKO Group Holdings (NYSE: TKO) from Buy to Neutral. The downgrade, issued by analyst David Joyce, follows the company’s fourth-quarter earnings report and its 2026 guidance. No specific price target was provided with the new rating.
Why the Rating Changed
The primary driver behind Seaport’s downgrade appears to be valuation concerns. According to reporting from Investing.com, the firm moved to a Neutral stance after reviewing TKO’s Q4 results and forward-looking 2026 guidance, suggesting that the stock’s current price already reflects much of the company’s near-term growth potential.
The timing of the downgrade is notable in the context of other analyst sentiment around TKO. Morgan Stanley, for instance, recently raised its price target on TKO modestly — from $210 to $215 — but maintained an Equal Weight rating, citing what it described as a “balanced risk/reward” following Q4 results. This aligns with Seaport’s shift toward a more cautious posture: while the underlying business may be performing adequately, the stock’s valuation may have reached a level where the upside is more limited relative to the risks.
Key factors likely contributing to the downgrade include:
- Valuation stretched relative to fundamentals: Seaport’s move from Buy to Neutral signals that the firm believes TKO shares are fairly valued at current levels, with limited room for further appreciation based on Q4 performance and 2026 outlook.
- Q4 earnings and 2026 guidance: While specific earnings figures were not detailed in the available coverage, the downgrade was explicitly tied to the company’s most recent quarterly results and forward guidance, suggesting these did not provide sufficient upside to justify maintaining a Buy rating.
- Broader analyst caution: Seaport’s downgrade is consistent with a wider trend of analysts taking a measured view on TKO. Morgan Stanley’s Equal Weight rating with only a modest price target increase reflects a similar wait-and-see approach.
It is worth noting that institutional interest in TKO remains robust. TD Asset Management increased its position in TKO by 3.5% during the third quarter to 656,587 shares, representing a stake valued at approximately $132.60 million. Additionally, notable investors such as George Soros’s fund have held TKO in their portfolios, as reflected in recent 13F filings.
TKO’s Dividend Profile
TKO Group Holdings currently pays an annual dividend of $3.12 per share, which translates to a dividend yield of approximately 1.39%. The most recent ex-dividend date was December 14, 2025.
While TKO is not typically categorized as a high-yield dividend stock, its payout offers income-oriented investors a modest return on top of potential capital appreciation. For dividend-focused investors, the yield at current price levels is relatively modest, and the Seaport downgrade suggests that near-term capital gains may be limited. Investors should monitor whether the company continues to grow its dividend over time, which could enhance the total return picture for long-term holders.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Analyst ratings and price targets reflect the opinions of individual firms and may not accurately predict future stock performance. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.