Take-Two Interactive Software (NASDAQ:TTWO) Shares Climb 8.6% - Here's Why

Key Points

• Take-Two shares climbed 8.6% to about $225, with trading volume 16% above its daily average. Investor optimism was fueled by management’s report that GTA VI preorders are “unprecedented” and well above expectations ahead of its scheduled November 19 launch.
• The company’s latest quarter disappointed: revenue of $1.50 billion fell short of the $1.64 billion consensus and declined 18.4% year over year. Its fiscal 2027 net bookings outlook of $8.0 billion–$8.2 billion was maintained but is below the cited analyst consensus of $8.6 billion.
• Analysts remain broadly positive despite those results, with a “Moderate Buy” consensus rating and an average price target of $289.05; JPMorgan reiterated Overweight with a $310 target, while BTIG reaffirmed Buy with a $262 target.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO - Get Free Report) shares rose 8.6% during mid-day trading on Tuesday. The stock traded as high as $229.46 and last traded at $225.3330. Approximately 2,759,119 shares traded hands during trading, an increase of 16% from the average daily volume of 2,384,971 shares. The stock had previously closed at $207.40.

More Take-Two Interactive Software News

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

• Positive Sentiment: Management said GTA VI preorders are at “unprecedented” levels and far above expectations. The game is scheduled to launch November 19, giving investors a major near-term catalyst and confidence in its sales potential. How high could GTA VI send Take-Two stock in 2027?
• Positive Sentiment: Take-Two maintained its fiscal 2027 net bookings forecast of $8.0 billion to $8.2 billion despite the quarterly shortfall. Investors may also see the forecast as conservative given the reported preorder strength. Take-Two reiterates FY2027 net bookings forecast
• Positive Sentiment: Analysts remain constructive: JPMorgan reiterated an Overweight rating with a $310 price target, while BTIG reaffirmed Buy with a $262 target. JPMorgan sets Take-Two stock price target
• Negative Sentiment: The latest quarter was soft: revenue was $1.50 billion, below analyst expectations of $1.64 billion, and down 18.4% year over year. Net bookings also came in slightly below initial guidance. Take-Two quarterly earnings report
• Negative Sentiment: The company’s next-quarter bookings outlook was reported below expectations, and its fiscal 2027 revenue forecast of $8.0 billion to $8.2 billion is below the cited analyst consensus of $8.6 billion—risks that could temper optimism if GTA VI sales do not exceed expectations. Take-Two projects third-quarter bookings below estimates

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Wells Fargo & Company reaffirmed an "overweight" rating on shares of Take-Two Interactive Software in a report on Monday, October 12th. BTIG Research reissued a "buy" rating and set a $262.00 price objective on shares of Take-Two Interactive Software in a report on Tuesday. BMO Capital Markets restated an "outperform" rating on shares of Take-Two Interactive Software in a research report on Tuesday. Arete Research cut their target price on Take-Two Interactive Software from $308.00 to $295.00 and set a "buy" rating for the company in a research note on Wednesday, September 9th. Finally, The Goldman Sachs Group raised their target price on Take-Two Interactive Software from $275.00 to $285.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Take-Two Interactive Software has an average rating of "Moderate Buy" and an average price target of $289.05.

Take-Two Interactive Software Price Performance

The stock has a market cap of $41.44 billion, a price-to-earnings ratio of -128.64, a price-to-earnings-growth ratio of 1.55 and a beta of 0.93. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.52. The company's 50-day moving average is $206.97 and its 200-day moving average is $218.96.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) last released its quarterly earnings data on Monday, November 9th. The company reported ($0.29) earnings per share for the quarter, missing the consensus estimate of $0.96 by ($1.25). Take-Two Interactive Software had a negative net margin of 4.79% and a positive return on equity of 12.25%. The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.64 billion. During the same quarter in the prior year, the company posted ($0.73) earnings per share. The company's revenue for the quarter was down 18.4% on a year-over-year basis. Take-Two Interactive Software has set its Q3 2027 guidance at 3.800-4.000 EPS and its FY 2027 guidance at 5.750-6.000 EPS. Equities research analysts expect that Take-Two Interactive Software, Inc. will post 5.19 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Daniel P. Emerson sold 917 shares of the business's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $217.65, for a total value of $199,585.05. Following the sale, the insider owned 113,071 shares in the company, valued at approximately $24,609,903.15. The trade was a 0.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Ellen F. Siminoff sold 334 shares of the company's stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $202.92, for a total transaction of $67,775.28. Following the completion of the sale, the director directly owned 1,332 shares in the company, valued at approximately $270,289.44. The trade was a 20.05% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 13,636 shares of company stock valued at $2,825,391. 1.12% of the stock is owned by company insiders.

Hedge Funds Weigh In On Take-Two Interactive Software

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new position in shares of Take-Two Interactive Software in the 2nd quarter valued at about $4,560,679,000. Bank of America Corp DE bought a new stake in shares of Take-Two Interactive Software during the second quarter worth approximately $599,405,000. Legal & General Group Plc bought a new stake in shares of Take-Two Interactive Software during the second quarter worth approximately $277,219,000. Bank of New York Mellon Corp bought a new stake in shares of Take-Two Interactive Software during the second quarter worth approximately $234,774,000. Finally, Deutsche Bank AG acquired a new position in Take-Two Interactive Software in the second quarter valued at approximately $205,858,000. 95.46% of the stock is currently owned by institutional investors and hedge funds.

About Take-Two Interactive Software

Take-Two Interactive Software is a global publisher and developer of interactive entertainment for console, PC, and mobile platforms. Its business includes creating and distributing games, downloadable content, and related services through its wholly owned labels, including Rockstar Games, 2K, and Zynga. The company's portfolio includes franchises such as Grand Theft Auto, Red Dead Redemption, NBA 2K, Borderlands, and Civilization, along with a range of mobile games. Its titles are sold and played in markets around the world.

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