Take-Two Interactive Software (NASDAQ:TTWO) Downgraded to Neutral Rating by Arete

Key Points

• Take-Two Interactive Software has been downgraded by Arete from a "buy" rating to a "neutral" rating, with a new price objective of $280.00, suggesting a potential upside of 9.56% from its previous close.
• Despite the downgrade, other analysts maintain positive outlooks with various price target increases, with some analysts rating it as a "buy" and setting targets as high as $285.00.
• Take-Two reported better-than-expected earnings for the last quarter, with a revenue increase of 16.4% year-over-year, highlighting a positive financial trajectory even amid rating changes.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) was downgraded by investment analysts at Arete from a "buy" rating to a "neutral" rating in a research note issued on Thursday, MarketBeat Ratings reports. They currently have a $280.00 price objective on the stock. Arete's price objective points to a potential upside of 9.56% from the stock's previous close.

Other equities research analysts have also issued reports about the company. Wedbush upped their price objective on Take-Two Interactive Software from $269.00 to $275.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. Wells Fargo & Company lifted their price objective on Take-Two Interactive Software from $270.00 to $277.00 and gave the company an "overweight" rating in a research report on Tuesday, October 7th. Zacks Research raised Take-Two Interactive Software from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 13th. UBS Group raised their target price on shares of Take-Two Interactive Software from $275.00 to $285.00 and gave the stock a "buy" rating in a research note on Friday, August 8th. Finally, Bank of America raised their target price on shares of Take-Two Interactive Software from $260.00 to $285.00 and gave the stock a "buy" rating in a research note on Friday, August 8th. Nineteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $254.14.

Take-Two Interactive Software Stock Performance

TTWO opened at $255.56 on Thursday. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.72. The company has a market cap of $47.14 billion, a price-to-earnings ratio of -10.68, a PEG ratio of 5.52 and a beta of 1.01. The company's 50 day moving average is $246.86 and its 200 day moving average is $234.32. Take-Two Interactive Software has a 12-month low of $158.65 and a 12-month high of $264.79.

Take-Two Interactive Software (NASDAQ:TTWO - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported $0.61 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.33. Take-Two Interactive Software had a negative net margin of 72.92% and a positive return on equity of 7.33%. The business had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.31 billion. During the same period last year, the firm earned ($1.52) earnings per share. The company's quarterly revenue was up 16.4% on a year-over-year basis. Take-Two Interactive Software has set its Q2 2026 guidance at 0.850-0.950 EPS. FY 2026 guidance at 2.600-2.850 EPS. On average, equities research analysts predict that Take-Two Interactive Software will post 0.97 EPS for the current year.

Insider Buying and Selling at Take-Two Interactive Software

In other Take-Two Interactive Software news, Director Jon J. Moses sold 1,000 shares of the stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $239.57, for a total transaction of $239,570.00. Following the completion of the sale, the director directly owned 21,901 shares of the company's stock, valued at $5,246,822.57. This trade represents a 4.37% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Ellen F. Siminoff sold 411 shares of the stock in a transaction that occurred on Wednesday, October 15th. The shares were sold at an average price of $259.42, for a total transaction of $106,621.62. Following the sale, the director directly owned 2,860 shares of the company's stock, valued at approximately $741,941.20. This trade represents a 12.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 141,822 shares of company stock worth $32,540,844. Insiders own 1.34% of the company's stock.

Institutional Investors Weigh In On Take-Two Interactive Software

Several large investors have recently made changes to their positions in TTWO. Norges Bank bought a new stake in shares of Take-Two Interactive Software in the second quarter worth about $731,047,000. Nuveen LLC purchased a new position in Take-Two Interactive Software during the 1st quarter valued at approximately $288,410,000. Price T Rowe Associates Inc. MD boosted its position in shares of Take-Two Interactive Software by 425.2% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 1,431,310 shares of the company's stock valued at $296,640,000 after acquiring an additional 1,158,783 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of Take-Two Interactive Software by 4.5% during the 2nd quarter. Vanguard Group Inc. now owns 20,768,874 shares of the company's stock valued at $5,043,721,000 after acquiring an additional 903,385 shares during the last quarter. Finally, Contour Asset Management LLC bought a new position in shares of Take-Two Interactive Software during the 1st quarter valued at approximately $180,701,000. 95.46% of the stock is owned by institutional investors.

About Take-Two Interactive Software

Take-Two Interactive Software, Inc develops, publishes, and markets interactive entertainment solutions for consumers worldwide. It develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises.

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