Judge Rejects UFC Settlement: What's Going On With TKO Group Stock?

TKO Group Holdings, Inc. (NYSE:TKO) shares are on watch Wednesday after a judge rejected an initial settlement agreement in the UFC class-action lawsuits.

The Details:

According to a Wrestling Observer report, Judge Richard Boulware denied approval of the $335 million settlement from March 20 and set a trial date of October 28 for the Cung Le vs. Zuffa case. 

Plaintiffs in the case initially sought $1.6 billion. According to MMA legal expert Erik Magraken, the judge is looking for a higher settlement amount and "major contractual changes" in the Johnson case.

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Both sides are reportedly trying to avoid a trial. UFC-parent TKO Group could face the risk of a much larger financial payout if the case goes to trial which could effect the stock's price.

TKO Group is set to report its second-quarter results on Aug. 8 before the opening bell. According to estimates from Benzinga Pro, analysts expect the company to report earnings of 87 cents per share and quarterly revenue of $771.313 million. 

Will TKO Stock Go Up?

When trying to assess whether or not TKO Group Holdings will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $124.67 on TKO Group Holdings. The Street high target is currently at $130 and the Street low target is $115. Of all the analysts covering TKO Group Holdings, 5 have positive ratings, one has neutral ratings and no one has negative ratings.

In the last month, 3 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering TKO Group Holdings have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. TKO Group Holdings is 34.04% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.

For a broad overview of everything you need to know about TKO Group Holdings, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

TKO Price Action: According to Benzinga Pro, TKO Group Holdings shares are flat at $109.29 at the time of publication Wednesday.

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