CICC Research Initiates Coverage of Take-Two Interactive with Outperform Rating

CICC Research has officially initiated coverage of Take-Two Interactive Software with an outperform rating and a target price of $272.00. This announcement was made in a research report circulated to investors on Tuesday morning. The firm joins a growing list of analysts optimistic about Take-Two’s prospects, reflecting a positive outlook for the gaming company.

Several other financial institutions have also recently adjusted their ratings on Take-Two. On August 8, Wedbush raised its target price from $269.00 to $275.00, maintaining an outperform rating. Similarly, JPMorgan Chase & Co. increased its price objective from $250.00 to $275.00, designating the stock with an overweight rating on the same day. Benchmark made a similar adjustment, lifting its target from $250.00 to $275.00 and issuing a buy rating.

In addition, UBS Group raised its target price to $285.00 on August 8, while Citigroup increased its target from $260.00 to $270.00 on July 23. Collectively, nineteen analysts have assigned a buy rating to Take-Two, with two providing a hold rating. According to data from MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $249.50.

Strong Earnings Report and Future Guidance

Take-Two reported its financial results for the quarter ending August 7, 2023, showcasing significant growth. The company achieved an earnings per share (EPS) of $0.61, surpassing the consensus estimate of $0.28 by $0.33. Revenue for the quarter reached $1.50 billion, exceeding the anticipated $1.31 billion. This marks a 16.4% increase compared to the same quarter last year.

The company also provided guidance for the upcoming quarters, projecting an EPS range of 0.850-0.950 for Q2 2026 and 2.600-2.850 for the full fiscal year 2026. Analysts expect Take-Two to post an EPS of 0.97 for the current year, reinforcing confidence in its financial trajectory.

Insider Trading Activity

Recent insider trading activity has also drawn attention. On August 21, Laverne Evans Srinivasan, a director at Take-Two, sold 2,325 shares at an average price of $227.47, totaling $528,867.75. Following this transaction, Srinivasan retained 9,063 shares, valued at approximately $2,061,560.61, representing a 20.42% reduction in their stake.

Additionally, CEO Strauss Zelnick sold 20,000 shares on August 27 at an average price of $230.69, with total proceeds of $4,613,800.00. Over the last quarter, insiders have sold a total of 141,825 shares valued at approximately $32,532,671. Currently, insiders hold 1.34% of the company’s stock.

Institutional investors continue to show strong interest in Take-Two. Clarius Group LLC acquired a new stake worth $404,000 in the first quarter. Cornerstone Investment Partners LLC increased its holdings by 14.1%, owning a total of 292,616 shares valued at $60,645,000. Other notable transactions included Stonebridge Financial Group LLC, which raised its stake significantly, and Ninety One UK Ltd, which boosted its position by 22.8%.

The institutional ownership of Take-Two stands at an impressive 95.46%, reflecting strong confidence from large investors.

Overview of Take-Two Interactive Software

Take-Two Interactive Software, Inc. is a prominent developer, publisher, and marketer of interactive entertainment solutions globally. The company is well-known for its action and adventure games, including popular franchises such as Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption.

Given the recent developments and positive market sentiment, Take-Two Interactive Software appears poised for continued growth in the competitive gaming industry.