Take-Two Interactive Software (NASDAQ:TTWO) Sees Strong Trading Volume - Should You Buy?

Key Points

• TTWO shares fell 6.7% to about $217.98, while trading volume declined 48% from the prior session to 1.18 million shares.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $296.95, including raised targets from Wells Fargo and Bank of America.
• Take-Two missed quarterly EPS expectations ($0.18 loss versus $0.33 expected) despite revenue of $1.53 billion, while insiders sold more than $28 million of stock over the past three months.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO - Get Free Report) shares saw an uptick in trading volume on Monday . 1,179,604 shares traded hands during trading, a decline of 48% from the previous session's volume of 2,271,919 shares.The stock last traded at $217.9830 and had previously closed at $235.39.

Analyst Ratings Changes

TTWO has been the subject of a number of recent analyst reports. BMO Capital Markets reaffirmed an "outperform" rating on shares of Take-Two Interactive Software in a research note on Tuesday, July 28th. UBS Group restated a "buy" rating on shares of Take-Two Interactive Software in a report on Monday, August 10th. DA Davidson reaffirmed a "buy" rating and issued a $300.00 target price on shares of Take-Two Interactive Software in a research report on Monday, August 10th. Wells Fargo & Company lifted their price target on Take-Two Interactive Software from $289.00 to $300.00 and gave the company an "overweight" rating in a report on Monday, August 10th. Finally, Bank of America upped their price target on Take-Two Interactive Software from $320.00 to $368.00 and gave the company a "buy" rating in a research report on Tuesday, June 23rd. 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's stock. Based on data from MarketBeat, Take-Two Interactive Software has a consensus rating of "Moderate Buy" and a consensus target price of $296.95.

Take-Two Interactive Software Stock Down 6.7%

The business's 50 day simple moving average is $242.28 and its 200-day simple moving average is $222.89. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.06 and a current ratio of 1.06. The company has a market cap of $41.05 billion, a price-to-earnings ratio of -126.90, a price-to-earnings-growth ratio of 1.56 and a beta of 0.97.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) last posted its quarterly 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). The company had revenue of $1.53 billion during the quarter, compared to analyst estimates of $1.36 billion. Take-Two Interactive Software had a positive return on equity of 12.25% and a negative net margin of 4.79%.The company's revenue was down 2.1% compared to the same quarter last year. During the same period last year, the company posted ($0.07) earnings per share. 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. Sell-side analysts expect that Take-Two Interactive Software, Inc. will post 5.51 earnings per share for the current year.

Insider Transactions at Take-Two Interactive Software

In other Take-Two Interactive Software news, Director Michael Sheresky sold 127 shares of the business's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $245.01, for a total value of $31,116.27. Following the completion of the sale, the director directly owned 65,368 shares of the company's stock, valued at $16,015,813.68. The trade was a 0.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Strauss Zelnick sold 40,000 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $252.64, for a total transaction of $10,105,600.00. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 122,448 shares of company stock valued at $28,084,217. Insiders own 1.12% of the company's stock.

Institutional Investors Weigh In On Take-Two Interactive Software

Several institutional investors and hedge funds have recently bought and sold shares of TTWO. California State Teachers Retirement System increased its position in shares of 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 purchasing an additional 65,509,194 shares in the last quarter. BlackRock Inc. bought a new position in Take-Two Interactive Software during the second quarter worth about $4,560,679,000. Norges Bank bought a new stake in shares of Take-Two Interactive Software in the 4th quarter valued at $735,389,000. Bank of America Corp DE bought a new position in Take-Two Interactive Software in the second quarter valued at approximately $599,405,000. Finally, Legal & General Group Plc acquired a new position in shares of Take-Two Interactive Software during the second quarter worth about $277,219,000. Institutional investors own 95.46% of the company's stock.

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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