On August 8, 2023, CICC Research initiated coverage on shares of Take-Two Interactive Software (NASDAQ: TTWO), issuing an outperform rating along with a target price of $272.00. This announcement comes as part of a broader trend among financial analysts, many of whom have recently adjusted their projections for the company’s stock, reflecting a generally optimistic outlook.
Analyst Ratings and Price Adjustments
In addition to CICC Research, several other firms have also raised their target prices for Take-Two Interactive. On the same day, Wedbush increased its target price from $269.00 to $275.00 while maintaining an outperform rating. Similarly, JPMorgan Chase & Co. revised its price objective from $250.00 to $275.00 and also assigned an overweight rating. Benchmark and UBS Group followed suit, with Benchmark raising its target to $275.00 and UBS increasing theirs from $275.00 to $285.00.
According to MarketBeat.com, the consensus rating for Take-Two Interactive is now classified as a “Moderate Buy,” with an average target price of $249.50. Overall, 19 research analysts have rated the stock with a Buy rating, while two have given it a Hold rating.
Financial Performance and Future Guidance
Take-Two Interactive recently reported its earnings on August 7, 2023. The company achieved earnings per share (EPS) of $0.61, significantly exceeding the consensus estimate of $0.28 by $0.33. The reported revenue for the quarter was $1.50 billion, surpassing expectations of $1.31 billion.
The company experienced a year-over-year revenue increase of 16.4% compared to the same quarter last year, when it reported an EPS of ($1.52). Looking ahead, Take-Two has set its Q2 2026 guidance at 0.850-0.950 EPS and for the fiscal year 2026, the guidance ranges from 2.600-2.850 EPS. Analysts predict that the company will post earnings of $0.97 per share for the current year.
Insider Transactions and Institutional Activity
In related news, Laverne Evans Srinivasan, a director at Take-Two, sold 2,325 shares on August 21, 2023, at an average price of $227.47, amounting to a total value of $528,867.75. Following this transaction, Srinivasan retained 9,063 shares, valued at approximately $2,061,560.61.
Additionally, Strauss Zelnick, the CEO, sold 20,000 shares on August 27, 2023, for $4,613,800.00. Insider trading activity over the last quarter totaled 141,825 shares valued at $32,532,671, with insiders currently holding 1.34% of the company’s stock.
Institutional investors have also been active, with several firms modifying their stakes in Take-Two Interactive. Notably, Clarius Group LLC purchased a new stake worth $404,000, while Cornerstone Investment Partners LLC raised its stake by 14.1% to own 292,616 shares valued at $60,645,000. As of now, institutional investors hold 95.46% of the company’s stock.
Take-Two Interactive Software continues to be a significant player in the interactive entertainment industry, developing and publishing popular franchises such as Grand Theft Auto and Red Dead Redemption. The ongoing positive sentiment among analysts and investors indicates a robust outlook for the company as it navigates the competitive landscape of gaming.
