Investment firm CICC Research has initiated coverage on Take-Two Interactive Software (NASDAQ: TTWO) with an “outperform” rating and a target price of $272.00. The report, shared with investors on Tuesday morning, highlights the company’s strong market positioning in the interactive entertainment sector. This marks a significant endorsement as the company continues to navigate a competitive landscape.
In addition to CICC’s assessment, several other research firms have recently raised their target prices for Take-Two Interactive. Notably, on August 8, 2023, Wedbush increased its target from $269.00 to $275.00, maintaining an “outperform” rating. Similarly, JPMorgan Chase & Co. raised its price objective to $275.00 and gave the company an “overweight” rating on the same day. Benchmark also lifted its target to $275.00, while UBS Group increased its price target to $285.00, both assigning a “buy” rating. Furthermore, Citigroup adjusted its target from $260.00 to $270.00 and rated the stock as a “buy” on July 23, 2023.
The overall consensus among analysts is positive, with 19 analysts rating the stock as a “Buy” and two as “Hold.” According to MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $249.50.
Recent Financial Performance
Take-Two Interactive recently reported its earnings results for the quarter ending August 7, 2023. The company achieved earnings per share (EPS) of $0.61, exceeding the consensus estimate of $0.28 by $0.33. Total revenue for the quarter reached $1.50 billion, surpassing the expected $1.31 billion. This performance reflects a year-over-year revenue increase of 16.4%, while the previous year’s EPS was recorded at a loss of ($1.52).
Looking ahead, Take-Two has provided guidance for the second quarter of fiscal year 2026, estimating EPS between $0.850 and $0.950. For the full fiscal year 2026, the guidance is set between $2.600 and $2.850 EPS. Analysts project the company will report $0.97 EPS for the current year.
Insider Activity and Institutional Investments
In related news, several insider transactions have been reported. On August 21, 2023, Laverne Evans Srinivasan, a director at Take-Two, sold 2,325 shares at an average price of $227.47, totaling approximately $528,867.75. Following this transaction, Srinivasan retains 9,063 shares valued at about $2,061,560.61, reflecting a 20.42% decrease in their holdings.
Additionally, Strauss Zelnick, the CEO, sold 20,000 shares on August 27, 2023, for a total of $4,613,800.00 at an average price of $230.69. Over the past quarter, insiders have sold a total of 141,825 shares valued at approximately $32,532,671. Currently, insiders hold 1.34% of the company’s stock.
Institutional investors have also been active in reshaping their stakes in Take-Two Interactive. Clarius Group LLC acquired a new stake valued at $404,000 in the first quarter, while Cornerstone Investment Partners LLC increased its holdings by 14.1%, now owning 292,616 shares worth approximately $60,645,000. Other notable changes include Stonebridge Financial Group LLC, which raised its stake significantly, and Ninety One UK Ltd, which boosted its position by 22.8%, now holding 1,801,582 shares valued at $437,514,000.
Overall, institutional investors hold a commanding 95.46% of Take-Two Interactive’s stock, reflecting substantial confidence in the company’s future prospects.
Take-Two Interactive Software continues to strengthen its market position, driven by positive earnings reports and favorable analyst ratings, positioning itself as a key player in the interactive entertainment industry.