Take-Two Interactive Software (NASDAQ: TTWO) has garnered significant attention from analysts following the initiation of coverage by CICC Research. In a report released on the morning of August 8, 2023, the firm assigned an “outperform” rating and set a target price of $272.00 for the stock. This positive outlook aligns with sentiments expressed by several other equity research analysts, further bolstering investor confidence.
Analysts from Wedbush also recently elevated their target price for Take-Two’s shares from $269.00 to $275.00, maintaining an “outperform” rating. Similarly, both JPMorgan Chase & Co. and Benchmark increased their price objectives for the stock to $275.00, with ratings of “overweight” and “buy,” respectively. UBS Group took a slightly more bullish stance, raising its target price from $275.00 to $285.00 while also issuing a “buy” rating. Citigroup adjusted its target price from $260.00 to $270.00, further emphasizing a positive outlook.
Currently, 19 analysts have rated Take-Two Interactive Software with a “buy,” while two have issued a “hold” rating. According to MarketBeat.com, the stock holds a consensus rating of “Moderate Buy” with an average target price of $249.50.
Financial Performance and Future Guidance
Take-Two Interactive Software released its latest earnings report on August 7, 2023, revealing a strong financial performance. The company reported earnings per share (EPS) of $0.61, exceeding the consensus estimate of $0.28 by $0.33. The company’s revenue for the quarter reached $1.50 billion, surpassing expectations of $1.31 billion. This represents a 16.4% increase in revenue compared to the same quarter last year.
For the upcoming fiscal periods, the company has provided guidance for Q2 2026 with expected EPS in the range of 0.850-0.950 and for fiscal year 2026, a range of 2.600-2.850 EPS. Analysts anticipate that Take-Two Interactive Software will report an EPS of 0.97 for the current year.
Insider Trading Activity
In recent developments, significant insider transactions have been reported. Director Laverne Evans Srinivasan sold 2,325 shares on August 21, 2023, at an average price of $227.47, totaling approximately $528,867.75. Following this transaction, Srinivasan retains 9,063 shares valued at around $2,061,560.61, marking a reduction of 20.42% in their holdings.
Additionally, CEO Strauss Zelnick sold 20,000 shares on August 27, 2023, at an average price of $230.69, amounting to $4,613,800.00. Over the past quarter, insiders have sold a total of 141,825 shares valued at $32,532,671. Currently, insiders hold 1.34% of the company’s stock.
Institutional Investor Activity
Changes in institutional holdings have also been noteworthy. Clarius Group LLC acquired a new stake in Take-Two Interactive Software valued at $404,000 during the first quarter. Cornerstone Investment Partners LLC increased its stake by 14.1%, now holding 292,616 shares worth $60,645,000 after purchasing an additional 36,112 shares.
Stonebridge Financial Group LLC made a remarkable increase of 3,986.2% in its position, now owning 1,185 shares valued at $246,000. Other notable increases include Wealth Enhancement Advisory Services LLC, which lifted its holdings by 8.4%, and Ninety One UK Ltd, which grew its stake by 22.8%, now holding 1,801,582 shares worth $437,514,000.
Overall, institutional investors own approximately 95.46% of Take-Two Interactive Software’s stock, reflecting widespread confidence in the company’s future prospects.
Take-Two Interactive Software continues to develop, publish, and market interactive entertainment solutions globally, with well-known titles such as Grand Theft Auto, LA Noire, and Red Dead Redemption in its portfolio. As market analysts and investors closely monitor the company’s performance, the outlook remains optimistic, reinforced by recent financial results and analyst endorsements.
