Merit Financial Group LLC Grows Position in Take-Two Interactive Software, Inc. $TTWO

Key Points

• Merit Financial Group increased its Take-Two stake by 144.7% in the second quarter, ending with 8,537 shares valued at approximately $2.13 million. Institutional investors collectively own 95.46% of TTWO.
• Take-Two exceeded revenue expectations with $1.53 billion, but reported an adjusted EPS loss of $0.18 and revenue declined 2.1% year over year. Investors remain focused on execution and the commercial potential of GTA VI.
• Analyst sentiment remains broadly bullish, with a consensus “Buy” rating and an average price target of $296.95, although CEO Strauss Zelnick recently sold 40,000 shares worth about $10.1 million and insiders have sold roughly $138.5 million of stock over the past three months.

Merit Financial Group LLC raised its stake in Take-Two Interactive Software, Inc. (NASDAQ:TTWO - Free Report) by 144.7% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 8,537 shares of the company's stock after acquiring an additional 5,048 shares during the quarter. Merit Financial Group LLC's holdings in Take-Two Interactive Software were worth $2,134,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Norges Bank acquired a new position in shares of Take-Two Interactive Software in the fourth quarter valued at approximately $735,389,000. AQR Capital Management LLC grew its stake in Take-Two Interactive Software by 162.1% in the 4th quarter. AQR Capital Management LLC now owns 1,138,738 shares of the company's stock worth $291,551,000 after acquiring an additional 704,316 shares during the period. Amundi lifted its stake in shares of Take-Two Interactive Software by 38.1% during the 1st quarter. Amundi now owns 2,493,985 shares of the company's stock worth $492,562,000 after purchasing an additional 688,133 shares during the period. Alyeska Investment Group L.P. grew its position in shares of Take-Two Interactive Software by 44.6% in the fourth quarter. Alyeska Investment Group L.P. now owns 1,842,927 shares of the company's stock valued at $471,845,000 after purchasing an additional 568,263 shares during the period. Finally, Bessemer Group Inc. increased its stake in Take-Two Interactive Software by 53.1% in the fourth quarter. Bessemer Group Inc. now owns 1,456,186 shares of the company's stock valued at $372,828,000 after purchasing an additional 505,000 shares during the last quarter. 95.46% of the stock is currently owned by hedge funds and other institutional investors.

Key Take-Two Interactive Software News

Here are the key news stories impacting Take-Two Interactive Software this week:

• Positive Sentiment: JPMorgan initiated coverage with an Overweight rating and a $310 price target, implying substantial upside from recent levels. DA Davidson reiterated its Buy rating, Wedbush assigned an Outperform rating, and Roth Capital raised its target to $300. The bullish view is centered on the potential commercial impact of GTA VI and Take-Two’s growing recurring-revenue base. JPMorgan coverage article DA Davidson rating article Wedbush rating article Roth Capital price target article
• Positive Sentiment: Institutional ownership remains strong, with BlackRock, Norges Bank, Bank of New York Mellon and Deutsche Bank recently establishing positions, while AQR Capital increased its stake. Such buying can reinforce confidence in Take-Two’s long-term outlook.
• Neutral Sentiment: Reported short interest was listed at zero shares, producing a zero-day short-interest ratio. Because the data appears internally inconsistent, it offers little useful trading information.
• Negative Sentiment: CEO Strauss Zelnick sold 40,000 TTWO shares for approximately $10.1 million at an average price of $252.64. The sale may be routine, but it can weigh on sentiment, particularly after additional sizable sales reported in May and June. CEO insider sale article
• Negative Sentiment: Take-Two’s latest quarter included an adjusted EPS loss of $0.18, below the $0.33 consensus estimate, despite revenue of $1.53 billion exceeding expectations. Revenue also declined 2.1% year over year, leaving investors focused on execution and whether GTA VI expectations are already reflected in the stock’s elevated valuation.

Take-Two Interactive Software Stock Performance

Shares of TTWO opened at $243.00 on Thursday. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.06 and a quick ratio of 1.24. The stock has a market capitalization of $45.44 billion, a P/E ratio of -140.46, a P/E/G ratio of 1.70 and a beta of 0.97. Take-Two Interactive Software, Inc. has a 12-month low of $187.63 and a 12-month high of $265.94. The firm's 50 day moving average is $237.98 and its 200-day moving average is $221.55.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) last announced its earnings results on Friday, August 7th. The company reported ($0.18) EPS for the quarter, missing the consensus estimate 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 in the previous year, the business earned ($0.07) earnings per share. The business's quarterly revenue was down 2.1% compared to the same quarter last year. 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. Equities research analysts anticipate that Take-Two Interactive Software, Inc. will post 5.38 EPS for the current fiscal year.

Insider Activity

In other news, Director Michael Dornemann sold 1,151 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $217.02, for a total value of $249,790.02. Following the completion of the sale, the director directly owned 20,374 shares of the company's stock, valued at $4,421,565.48. This represents a 5.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Strauss Zelnick sold 40,000 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $252.64, for a total transaction of $10,105,600.00. The SEC filing for this sale provides additional information. In the last three months, insiders sold 609,936 shares of company stock worth $138,537,038. Corporate insiders own 1.12% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on TTWO shares. Raymond James Financial set a $300.00 target price on shares of Take-Two Interactive Software in a report on Thursday, August 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Take-Two Interactive Software in a report on Friday, July 10th. Piper Sandler reiterated an "overweight" rating on shares of Take-Two Interactive Software in a report on Tuesday, June 16th. Oppenheimer increased their target price on Take-Two Interactive Software from $265.00 to $280.00 and gave the company an "outperform" rating in a research note on Monday. Finally, Wedbush reissued an "outperform" rating and issued a $300.00 price objective on shares of Take-Two Interactive Software in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus price target of $296.95.

Take-Two Interactive Software 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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