Take-Two Interactive Software (NASDAQ: TTWO) has been placed under coverage by CICC Research, which issued a research report on August 8, 2023. The firm assigned an outperform rating to the stock, along with a target price of $272.00. This move comes as several other analysts have also recently revised their target prices on Take-Two shares, reflecting growing confidence in the company’s future performance.
CICC’s report is part of a broader trend, as notable firms have shown increased optimism regarding Take-Two’s prospects. On the same day, Wedbush raised its target price from $269.00 to $275.00, maintaining an “outperform” rating. Similarly, both JPMorgan Chase & Co. and Benchmark set their price objectives at $275.00, each labeling the stock as “overweight” and “buy,” respectively. UBS Group also increased its target price from $275.00 to $285.00 and assigned a “buy” rating, while Citigroup raised its target from $260.00 to $270.00 earlier in July.
According to MarketBeat.com, a total of nineteen research analysts currently rate Take-Two stock as a buy, with two maintaining a hold rating. The consensus rating stands at “Moderate Buy,” with an average target price of $249.50.
Recent Earnings and Future Projections
On August 7, 2023, Take-Two reported its quarterly earnings, revealing an earnings per share (EPS) of $0.61, which significantly exceeded the consensus estimate of $0.28. The company generated $1.50 billion in revenue for the quarter, surpassing expectations of $1.31 billion. This represents a 16.4% increase in revenue compared to the same quarter last year.
The firm has set guidance for the second quarter of 2026, indicating an EPS range of $0.850-0.950, and a full-year forecast for fiscal year 2026 of $2.600-2.850. Analysts project that Take-Two will achieve an EPS of $0.97 for the current year.
Insider Transactions and Institutional Investments
In recent insider trading, 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 holds 9,063 shares, valued at around $2,061,560.61. This sale represents a 20.42% reduction in their stake.
CEO Strauss Zelnick also participated in recent transactions, selling 20,000 shares on August 27, 2023, at an average price of $230.69, amounting to approximately $4,613,800.00. In total, insiders have sold 141,825 shares valued at about $32,532,671 over the past quarter, with insiders currently owning 1.34% of the company’s stock.
Institutional investors have been active as well. Clarius Group LLC acquired a new stake in Take-Two worth $404,000 in the first quarter. Additionally, Cornerstone Investment Partners LLC increased its stake by 14.1%, now owning 292,616 shares worth approximately $60,645,000. Other firms, including Stonebridge Financial Group LLC and Wealth Enhancement Advisory Services LLC, also raised their positions significantly. Institutional ownership now stands at 95.46% of Take-Two’s stock.
Take-Two Interactive Software continues to develop and market interactive entertainment solutions globally, with popular franchises including Grand Theft Auto, Red Dead Redemption, and more. The company’s robust earnings and positive analyst ratings suggest a promising outlook as it navigates the competitive gaming landscape.
