Take-Two Interactive Software (NASDAQ:TTWO) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Take-Two Interactive Software from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $296.95.
• Take-Two reported quarterly EPS of negative $0.18, missing estimates of $0.33, while revenue of $1.53 billion exceeded forecasts but declined 2.1% year over year.
• CEO Strauss Zelnick and other insiders sold shares recently; insiders sold $123.2 million worth of stock over the last quarter, while institutional investors own 95.46% of the company.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

Other research analysts have also recently issued research reports about the company. Roth Capital raised their target price on Take-Two Interactive Software from $295.00 to $300.00 and gave the company a "buy" rating in a research note on Monday, August 10th. DA Davidson reissued a "buy" rating and issued a $300.00 price target on shares of Take-Two Interactive Software in a report on Monday, August 10th. Wedbush restated an "outperform" rating and set a $300.00 price objective on shares of Take-Two Interactive Software in a research report on Monday, August 10th. BTIG Research lifted their price objective on shares of Take-Two Interactive Software from $293.00 to $313.00 and gave the stock a "buy" rating in a research note on Monday, August 10th. Finally, JPMorgan Chase & Co. initiated coverage on shares of Take-Two Interactive Software in a report on Tuesday, August 11th. They issued an "overweight" rating and a $310.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $296.95.

Take-Two Interactive Software Trading Up 0.2%

Take-Two Interactive Software stock opened at $233.45 on Tuesday. Take-Two Interactive Software has a 12-month low of $187.63 and a 12-month high of $265.94. The stock has a market capitalization of $43.65 billion, a PE ratio of -134.94, a price-to-earnings-growth ratio of 1.55 and a beta of 0.97. The firm has a 50 day simple moving average of $242.48 and a 200-day simple moving average of $222.41. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.06.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) last released its earnings results on Friday, August 7th. The company reported ($0.18) earnings per share for the quarter, missing analysts' consensus estimates of $0.33 by ($0.51). Take-Two Interactive Software had a positive return on equity of 12.25% and a negative net margin of 4.79%.The firm had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.36 billion. During the same quarter last year, the company earned ($0.07) earnings per share. The business's revenue for the quarter was down 2.1% on a year-over-year basis. Take-Two Interactive Software has set its Q2 2027 guidance at 0.900-1.000 EPS and its FY 2027 guidance at 5.750-6.000 EPS. As a group, equities research analysts expect that Take-Two Interactive Software will post 5.51 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Strauss Zelnick sold 40,000 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $252.64, for a total value of $10,105,600.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Ellen F. Siminoff sold 334 shares of Take-Two Interactive Software stock in a transaction on Friday, August 14th. The shares were sold at an average price of $242.34, for a total transaction of $80,941.56. Following the completion of the sale, the director directly owned 1,666 shares of the company's stock, valued at approximately $403,738.44. The trade was a 16.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 540,759 shares of company stock worth $123,183,789 in the last quarter. Corporate insiders own 1.12% of the company's stock.

Institutional Trading of Take-Two Interactive Software

A number of institutional investors and hedge funds have recently modified their holdings of TTWO. HighTower Advisors LLC grew its stake in Take-Two Interactive Software by 0.7% in the 2nd quarter. HighTower Advisors LLC now owns 76,956 shares of the company's stock valued at $19,237,000 after buying an additional 500 shares during the last quarter. Groupe la Francaise lifted its position in Take-Two Interactive Software by 63.8% during the 2nd quarter. Groupe la Francaise now owns 14,713 shares of the company's stock worth $3,611,000 after acquiring an additional 5,730 shares during the last quarter. California State Teachers Retirement System lifted its position in Take-Two Interactive Software by 21,833.4% during the 2nd quarter. California State Teachers Retirement System now owns 65,809,235 shares of the company's stock worth $16,450,993,000 after acquiring an additional 65,509,194 shares during the last quarter. Washington Trust Advisors Inc. boosted its holdings in Take-Two Interactive Software by 116.4% during the second quarter. Washington Trust Advisors Inc. now owns 119 shares of the company's stock valued at $30,000 after acquiring an additional 64 shares during the period. Finally, Wedmont Private Capital grew its position in shares of Take-Two Interactive Software by 9.8% in the second quarter. Wedmont Private Capital now owns 3,045 shares of the company's stock valued at $741,000 after purchasing an additional 272 shares during the last quarter. 95.46% of the stock is currently owned by institutional investors and hedge funds.

Take-Two Interactive Software Company Profile

Take-Two Interactive Software is an American video game publisher headquartered in New York City. Founded in 1993 by Ryan Brant, the company is publicly traded on the NASDAQ under the ticker TTWO and is led by Chairman and CEO Strauss Zelnick. Take-Two operates through distinct publishing labels that manage development, marketing and distribution of interactive entertainment for a global audience.

Take-Two's publishing portfolio includes Rockstar Games and 2K, as well as the Private Division label, which supports independent and mid-size developers.

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