Take-Two Interactive Gains Analyst Support with Upgrades and Target Prices
Take-Two Interactive Software (NASDAQ: TTWO) received a significant boost as CICC Research began coverage on the company’s shares, issuing an outperform rating along with a target price of $272.00 in a report released on Tuesday. This endorsement comes at a time when the gaming company appears to be gaining traction among analysts, with multiple firms revising their target prices upward.
On August 8, 2023, several equity research firms highlighted their positive outlook for Take-Two Interactive. Wedbush increased its target price from $269.00 to $275.00, while JPMorgan Chase & Co. raised its price objective from $250.00 to $275.00 and assigned an overweight rating to the stock. Benchmark also lifted its target price from $250.00 to $275.00, recommending a buy rating. Additionally, UBS Group increased its target from $275.00 to $285.00, maintaining a buy rating, and Citigroup raised its target from $260.00 to $270.00, also giving a buy recommendation.
Currently, a total of nineteen research analysts have rated Take-Two Interactive with a Buy rating, while two analysts have assigned a Hold rating. According to MarketBeat.com, the stock has a consensus rating of Moderate Buy with an average target price of $249.50.
Recent Earnings and Financial Performance
Take-Two Interactive Software released its latest earnings results on August 7, 2023. The company reported earnings per share (EPS) of $0.61, significantly exceeding the consensus estimate of $0.28 by $0.33. The company generated revenue of $1.50 billion during the quarter, surpassing the expected $1.31 billion. This represents a year-over-year revenue increase of 16.4%, a positive sign for the company’s growth trajectory.
Despite these encouraging results, Take-Two reported a negative net margin of 72.92% and a positive return on equity of 7.33%. The company has set its Q2 2026 guidance at an EPS range of 0.850-0.950 and a full-year guidance for FY 2026 of 2.600-2.850 EPS. Analysts forecast that Take-Two will post an EPS of 0.97 for the current year.
Insider Transactions and Institutional Investments
In related news, insider transactions have captured attention. On August 21, 2023, Director Laverne Evans Srinivasan sold 2,325 shares at an average price of $227.47, totaling approximately $528,867.75. Following this transaction, Srinivasan retained 9,063 shares valued at around $2,061,560.61. This sale represented a 20.42% reduction in the director’s holdings.
Additionally, CEO Strauss Zelnick sold 20,000 shares on August 27, 2023, valued at about $4,613,800.00, further indicating active trading among company executives. Over the past quarter, insiders sold a total of 141,825 shares, amounting to $32,532,671 in value, with insiders currently holding 1.34% of the company’s stock.
Institutional investors also demonstrated confidence in Take-Two Interactive. Clarius Group LLC acquired a new stake valued at $404,000 in the first quarter. Cornerstone Investment Partners LLC increased its stake by 14.1%, now holding 292,616 shares worth $60,645,000. Stonebridge Financial Group LLC raised its stake by an impressive 3,986.2%, acquiring 1,185 shares valued at $246,000. Wealth Enhancement Advisory Services LLC, meanwhile, lifted its holdings by 8.4%, owning 15,810 shares worth $2,910,000.
Currently, institutional investors own approximately 95.46% of Take-Two Interactive’s stock, reflecting strong confidence in the company’s market position and future potential.
Take-Two Interactive Software continues to develop engaging entertainment solutions for consumers worldwide, notably through its acclaimed franchises such as Grand Theft Auto, Red Dead Redemption, and others. The company’s stock performance and analyst ratings suggest a promising outlook as it navigates the competitive landscape of the interactive entertainment industry.
