CICC Research has initiated coverage on shares of Take-Two Interactive Software (NASDAQ: TTWO), issuing an outperform rating along with a target price of $272.00. The report, released to investors on Tuesday morning, highlights the promising outlook for the gaming company amid a series of favorable assessments from other analysts.
On August 8, 2023, several notable equities research firms also showed confidence in Take-Two’s stock. Wedbush raised its target price from $269.00 to $275.00, maintaining an outperform rating. Similarly, JPMorgan Chase & Co. increased its target from $250.00 to $275.00, while giving the company an overweight rating. Benchmark matched this sentiment by lifting their price objective to $275.00 with a buy rating.
Furthermore, UBS Group upgraded their target for Take-Two from $275.00 to $285.00, also classifying it as a buy. Lastly, Citigroup revised its price target from $260.00 to $270.00, assigning a buy rating. Currently, 19 analysts rate the stock as a buy and two as hold, resulting in a consensus rating of “Moderate Buy” and an average target price of $249.50, according to MarketBeat.com.
Financial Performance and Guidance
Take-Two Interactive recently reported its earnings results on August 7, 2023, revealing an earnings per share (EPS) of $0.61. This figure significantly exceeded the consensus estimate of $0.28 by $0.33. The company also generated revenue of $1.50 billion, surpassing the expected $1.31 billion. This marked a year-over-year revenue increase of 16.4%.
For the upcoming quarters, Take-Two has set a guidance for Q2 2026 EPS ranging from $0.850 to $0.950. The full-year 2026 guidance is projected between $2.600 and $2.850. Analysts forecast that Take-Two will post an EPS of $0.97 for the current year.
Recent Insider Transactions
In addition to analyst ratings, insider trading activity has also attracted 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 $2.06 million, which represents a 20.42% decrease in their position.
CEO Strauss Zelnick also sold 20,000 shares on August 27, 2023, at an average price of $230.69, amounting to $4.61 million. Over the last quarter, insiders collectively sold 141,825 shares, valued at approximately $32.53 million. Currently, insiders hold 1.34% of the company’s stock.
Institutional investors continue to show significant interest in Take-Two. Recently, several firms adjusted their positions with notable changes. Clarius Group LLC purchased a new stake valued at $404,000 in the first quarter. Cornerstone Investment Partners LLC increased its stake by 14.1%, now owning 292,616 shares worth around $60.65 million.
Other significant adjustments include Stonebridge Financial Group LLC, which raised its stake by an impressive 3,986.2%, and Wealth Enhancement Advisory Services LLC, which lifted its holdings by 8.4%. As of now, institutional investors own approximately 95.46% of Take-Two’s stock.
Founded in 1993, Take-Two Interactive Software develops and publishes interactive entertainment solutions worldwide. The company is known for its acclaimed franchises, including Grand Theft Auto, Red Dead Redemption, and NBA 2K, among others. As the gaming market continues to expand, the firm is well-positioned to capitalize on emerging opportunities within the industry.