On August 7, 2023, Take-Two Interactive Software (NASDAQ: TTWO) announced a strong quarterly earnings report, exceeding analysts’ expectations. Following this positive performance, CICC Research initiated coverage of the company’s shares, assigning an outperform rating and a target price of $272.00. This development highlights growing confidence in Take-Two’s market position.
Analysts Weigh In
Several financial institutions have provided updated assessments of Take-Two Interactive in the wake of its earnings announcement. On August 8, Wedbush raised its target price from $269.00 to $275.00, maintaining an “outperform” rating. Similarly, JPMorgan Chase & Co. also increased its price target to $275.00 and upgraded its rating to “overweight.”
Benchmark and UBS Group echoed this sentiment, with Benchmark lifting its price objective to $275.00 and assigning a “buy” rating, while UBS elevated its target to $285.00 with a “buy” recommendation. Citigroup made a similar adjustment on July 23, increasing its target from $260.00 to $270.00, also giving a “buy” rating.
Overall, a total of nineteen analysts have rated Take-Two with a “buy” designation, while two analysts have given it a “hold” rating. The stock currently holds a consensus rating of “Moderate Buy” according to MarketBeat.com, with an average target price of $249.50.
Financial Performance Highlights
In its latest earnings results, Take-Two reported earnings per share (EPS) of $0.61, surpassing the consensus estimate of $0.28 by $0.33. The company’s revenue for the quarter reached $1.50 billion, exceeding expectations of $1.31 billion. This represents a notable increase of 16.4% compared to the same quarter last year.
Take-Two’s return on equity stood at 7.33%, despite a negative net margin of 72.92%. In the previous year’s quarter, the company reported an EPS of ($1.52). Looking ahead, Take-Two has set its guidance for Q2 2026 at an EPS range of 0.850-0.950 and for the full fiscal year 2026 at 2.600-2.850 EPS. Analysts project an EPS of 0.97 for the current year.
Insider Transactions and Institutional Activity
In other developments, Director Laverne Evans Srinivasan sold 2,325 shares on August 21 at an average price of $227.47, totaling approximately $528,867.75. Following this sale, Srinivasan retained 9,063 shares valued at around $2,061,560.61, marking a 20.42% reduction in her holdings.
Additionally, CEO Strauss Zelnick divested 20,000 shares on August 27, generating approximately $4.61 million at an average price of $230.69. Over the last quarter, insiders sold a total of 141,825 shares valued at $32,532,671, with insiders currently holding 1.34% of the company’s stock.
Institutional investors have also shown significant activity regarding Take-Two’s shares. Clarius Group LLC acquired a new stake worth $404,000 in the first quarter. Cornerstone Investment Partners LLC increased its stake by 14.1%, now owning 292,616 shares valued at approximately $60.65 million.
Other notable changes include Stonebridge Financial Group LLC, which raised its stake significantly by 3,986.2%, owning 1,185 shares worth $246,000. Wealth Enhancement Advisory Services LLC increased its holdings by 8.4%, owning 15,810 shares valued at $2.91 million.
Finally, Ninety One UK Ltd boosted its position by 22.8% during the second quarter, now holding 1,801,582 shares valued at $437.51 million. Institutional investors collectively own 95.46% of Take-Two’s stock, reflecting strong confidence in the company’s future prospects.
Take-Two Interactive Software, headquartered in New York, develops and publishes interactive entertainment solutions, including popular franchises such as Grand Theft Auto and Red Dead Redemption. The company’s ongoing success and positive earnings reports position it well within the competitive gaming industry.
