Form 4: TKO Group Holdings Insider Buys Shares Through Rule 10b5-1 Plan

Patrick Whitesell, a director and 10% owner of TKO Group Holdings, indirectly acquired shares through Endeavor Operating Company, LLC via a pre-arranged Rule 10b5-1 trading plan.

Summary

• Patrick Whitesell, a director and 10% owner of TKO Group Holdings, has reported the indirect acquisition of TKO Class A Common Stock through Endeavor Operating Company, LLC (EOC).
• These purchases were made under a pre-arranged Rule 10b5-1 trading plan adopted by EOC on December 17, 2024, and set to expire on or before March 31, 2025.
• The transactions occurred between January 28, 2025, and January 30, 2025, with multiple purchases at varying prices.
• The total number of shares indirectly acquired by EOC during this period was 178,991.
• The weighted average prices for these purchases ranged from $154.98 to $159.53 per share.
• After these transactions, the total number of Class A Common Stock shares indirectly held by EOC is 1,605,610.
• Additionally, 1,825,030 shares are held by WME IMG, LLC, an indirect wholly owned subsidiary of Endeavor Group Holdings, Inc. (EGH).
• Mr. Whitesell disclaims beneficial ownership of these securities except to the extent of his pecuniary interest.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. The insider buying is a positive sign, but it's part of a pre-arranged plan, so it's not a strong signal of a change in outlook.

Positives

• The purchases indicate confidence in TKO Group Holdings by a key insider.
• The use of a pre-arranged Rule 10b5-1 trading plan suggests a structured and transparent approach to share acquisitions.
• The consistent buying activity over multiple days may signal a positive outlook on the company's future performance.

Risks

• The document does not explicitly state any risks, but the reliance on a trading plan means that the purchases are not necessarily indicative of a change in the insider's view of the company's prospects.
• The trading plan is set to expire on or before March 31, 2025, which could lead to a change in buying patterns.

Future Outlook

The document does not provide any specific forward-looking statements or guidance beyond the expiration of the current trading plan.

Management Comments

• Mr. Whitesell disclaims beneficial ownership of the securities except to the extent of his pecuniary interest therein.

Industry Context

This filing is a routine disclosure of insider trading activity, which is common in publicly traded companies. The use of a Rule 10b5-1 plan is a standard practice to avoid accusations of insider trading.

Comparison to Industry Standards

• The use of a Rule 10b5-1 trading plan is a common practice among corporate insiders at companies like TKO Group Holdings, similar to what is seen at other publicly traded companies such as Netflix, Amazon, and Apple.
• The reported transactions are consistent with typical insider buying patterns, where purchases are often made in smaller increments over a period of time rather than in large, single transactions.
• The weighted average prices reported are within the expected range for market transactions, similar to what would be seen in other large-cap companies.

Stakeholder Impact

• The share purchases may have a slightly positive impact on shareholder confidence.
• The transactions do not appear to have any direct impact on employees, customers, suppliers, or creditors.

Key Dates

Keywords

TKO Group Holdings, Insider Trading, Rule 10b5-1, Patrick Whitesell, Endeavor Operating Company, Share Acquisition, Class A Common Stock, Beneficial Ownership