Take-Two Interactive Software (NASDAQ:TTWO) Shares Down 6.5% - Time to Sell?

Key Points

• Take-Two shares fell 6.5% on Friday, even after a recent post-earnings rally, as investors reassessed the stock’s valuation and near-term move.
• The company confirmed that Grand Theft Auto VI is still slated for a Nov. 19 release, and management also projected record fiscal 2027 net bookings tied to the game’s launch.
• Despite strong operating results, FY2027 bookings guidance of $8.0 billion to $8.2 billion came in below consensus, which appears to be weighing on sentiment.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO - Get Free Report)'s stock price was down 6.5% during trading on Friday . The company traded as low as $226.06 and last traded at $222.5370. Approximately 1,127,884 shares traded hands during mid-day trading, a decline of 45% from the average daily volume of 2,057,475 shares. The stock had previously closed at $238.08.

Trending Headlines about Take-Two Interactive Software

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

• Positive Sentiment: Take-Two confirmed that Grand Theft Auto VI remains on track for a Nov. 19 release, reducing delay risk and supporting investor confidence in a major upcoming catalyst. Reuters article
• Positive Sentiment: The company reported better-than-expected quarterly results, with revenue and adjusted earnings beating estimates, showing the business is still performing well ahead of GTA VI. Business Wire article
• Positive Sentiment: Management forecast record fiscal 2027 net bookings driven by GTA VI, suggesting a sharp step-up in demand next year even with near-term volatility. Benzinga article
• Neutral Sentiment: Some coverage notes the stock is pulling back after the post-earnings jump, as traders reassess whether the strong GTA VI outlook is already reflected in the share price. Yahoo Finance article
• Negative Sentiment: Despite the upbeat GTA VI catalyst, FY2027 bookings guidance of $8.0 billion to $8.2 billion was below consensus, raising concerns that management’s outlook is more conservative than investors expected. Reuters article

Analyst Ratings Changes

A number of brokerages have issued reports on TTWO. DA Davidson reissued a "buy" rating and set a $300.00 target price on shares of Take-Two Interactive Software in a report on Wednesday, February 4th. UBS Group boosted their price target on shares of Take-Two Interactive Software from $292.00 to $300.00 and gave the company a "buy" rating in a research report on Wednesday, January 28th. Benchmark restated a "buy" rating on shares of Take-Two Interactive Software in a research report on Friday. BMO Capital Markets restated an "outperform" rating on shares of Take-Two Interactive Software in a report on Friday. Finally, Wells Fargo & Company reduced their price target on Take-Two Interactive Software from $295.00 to $293.00 and set an "overweight" rating on the stock in a research report on Monday, April 6th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $287.93.

Take-Two Interactive Software Trading Down 4.8%

The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.71. The stock's fifty day moving average price is $211.59 and its two-hundred day moving average price is $225.86. The company has a market capitalization of $41.95 billion, a PE ratio of -10.11, a price-to-earnings-growth ratio of 3.53 and a beta of 0.97.

Insider Activity at Take-Two Interactive Software

In related news, Director Michael Dornemann sold 1,390 shares of Take-Two Interactive Software stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $213.09, for a total transaction of $296,195.10. Following the transaction, the director owned 21,525 shares in the company, valued at approximately $4,586,762.25. The trade was a 6.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Daniel P. Emerson sold 810 shares of the firm's stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $213.47, for a total value of $172,910.70. Following the sale, the insider directly owned 124,191 shares in the company, valued at approximately $26,511,052.77. This represents a 0.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 64,724 shares of company stock worth $13,866,155. Company insiders own 1.34% of the company's stock.

Institutional Trading of Take-Two Interactive Software

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in Take-Two Interactive Software by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 21,868,194 shares of the company's stock worth $5,598,914,000 after purchasing an additional 166,661 shares in the last quarter. State Street Corp lifted its stake in Take-Two Interactive Software by 3.5% in the 4th quarter. State Street Corp now owns 11,402,978 shares of the company's stock worth $2,919,362,000 after purchasing an additional 390,331 shares in the last quarter. Geode Capital Management LLC lifted its stake in Take-Two Interactive Software by 1.3% in the 4th quarter. Geode Capital Management LLC now owns 4,869,112 shares of the company's stock worth $1,242,204,000 after purchasing an additional 60,893 shares in the last quarter. Invesco Ltd. raised its position in shares of Take-Two Interactive Software by 0.6% during the 4th quarter. Invesco Ltd. now owns 2,889,144 shares of the company's stock valued at $739,707,000 after buying an additional 16,758 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Take-Two Interactive Software during the 4th quarter valued at about $735,389,000. Hedge funds and other institutional investors own 95.46% of the company's stock.

About Take-Two Interactive Software

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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