Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has recently received a consensus rating of “Moderate Buy” from twenty-four research firms in the industry, as reported by Bloomberg. Out of these, six equities research analysts have rated the stock with a hold rating and eighteen have issued a buy rating on the company. This mixed analysis indicates that investors are split when it comes to their opinions about TTWO’s future prospects.
Whilst there is no denying the success of Take-Two Interactive Software’s products under its four brand names – Rockstar Games, 2K, Private Division, and Zynga – the company’s recent financial performance has been somewhat rocky. In May this year, Take-Two Interactive Software posted its quarterly earnings results which showed disappointing figures – $1.39 billion in revenue compared to an estimated $1.34 billion and negative net margin of 21.02%, for instance.
Although those figures did not reflect well on the company’s recent performance, this should be taken with due regard towards its current year outlook as sell-side analysts expect that Take-Two Interactive Software will post 2.81 EPS for this year alone.
It is understandable that investors will have varying views on TTWO given its fluctuating performance over time but all in all, it should be highlighted that despite such fluctuations, Take-Two Interactive continues to develop and publish much loved games such as Grand Theft Auto and Red Dead Redemption products amongst others that are considered timeless classics by many gaming enthusiasts worldwide.
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Analyst Reviews and Insider Sales: A Look at Take-Two Interactive Software’s Performance
Take-Two Interactive Software has been making headlines recently, attracting attention from analysts and investors alike. In a recent research note, 1-800-FLOWERS.COM restated their “maintains” rating on shares of Take-Two Interactive Software, while Bank of America increased their target price from $135.00 to $146.00 and Barclays went even higher, increasing their target price to $160.00. However, StockNews.com issued a “sell” rating on the stock.
Despite these mixed reviews, Take-Two Interactive Software opened at $141.85 on Friday with a market cap of $24.02 billion and a PE ratio of -20.77. The company offers its products under a number of popular names such as Rockstar Games, 2K, Private Division, and Zynga.
In other news, insiders Daniel P. Emerson and Karl Slatoff have recently sold shares in the company for significant sums. Emerson sold 6,251 shares at an average price of $137.88 for a total transaction value of $861,887.88 while Slatoff sold 68,351 shares for over $8 million.
Despite the insider sales and mixed analyst reviews, institutional investors and hedge funds appear bullish about the stock’s future prospects with several changes to their positions in the company in recent months.
Overall, while some analysts remain cautious about Take-Two Interactive Software’s potential performance in the market others are more optimistic so it’ll be interesting to keep an eye on their future developments in order to see if they can capitalize on any opportunities that might arise in this competitive industry sector which is becoming more relevant due to recent global events that are taking place worldwide making people shift towards gaming as entertainment during times when staying at home have become necessary for health reasons along with other factors that contribute positively towards the growth of these companies predicted by professionals within this industry already anticipating good results that will show up later on.