In recent market activity for Take-Two (NASDAQ:TTWO) Interactive Software Inc (NASDAQ:TTWO), Michael Sheresky, a member of the company's board of directors, executed a sale of company stock. The transaction, which took place on June 6, 2024, involved 218 shares of common stock at a price of $167.12 per share, culminating in a total sale value of approximately $36,432.
The sale was conducted under a Rule 10b5-1 trading plan, which Sheresky had previously adopted on August 23, 2023. Such plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing a legal framework to buy or sell shares at predetermined future dates. The stated purpose of this particular sale was to cover tax obligations related to the vesting of restricted stock that had been granted to Sheresky.
Following the sale, Sheresky's remaining holdings in Take-Two Interactive stock amount to 64,173 shares. The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission, with Aaron Diamond signing as attorney-in-fact for Mr. Sheresky on June 7, 2024.
Take-Two Interactive Software Inc is known for its development and publishing of interactive entertainment products, including popular video game franchises. The company's shares are traded on the NASDAQ under the ticker symbol TTWO. As with all insider transactions, this sale provides investors with information about executive confidence and financial moves within the company, which can be a factor in investment decisions.
In other recent news, Take-Two Interactive has been the focus of several analyst firms. Citi maintained its Buy rating for Take-Two Interactive with a steady price target of $200, following the company's financial results that exceeded market expectations. The company projected bookings for the first quarter of fiscal year 2025 to be between $1.20 billion and $1.25 billion. For the full fiscal year 2025, bookings are anticipated to fall between $5.50 billion and $5.65 billion.
BofA Securities upgraded Take-Two Interactive from Neutral to Buy and raised the price target to $185, anticipating new game releases and updates on Grand Theft Auto 6. Similarly, Roth/MKM reiterated its Buy rating with a $180 price target, highlighting the significance of upcoming title releases. On the other hand, Baird slightly reduced the price target to $172 but maintained an Outperform rating, following the announcement of GTA VI's delay.
BMO Capital Markets kept its Outperform rating and $185 price target, citing the success of NBA 2K24 and the enduring popularity of the Red Dead Redemption and Grand Theft Auto series. These recent developments reflect a shifting landscape for Take-Two Interactive as it navigates through its game releases and financial forecasts.
InvestingPro Insights
Take-Two Interactive Software Inc (NASDAQ:TTWO) has been navigating the dynamic gaming market with a mix of strategies that reflect on its financial metrics. According to InvestingPro data, Take-Two holds a market capitalization of $28.27 billion and a Price/Book ratio as of the last twelve months of Q4 2024 at 5.0. Despite a slight revenue decline of 0.01% during the same period, the company maintains a substantial gross profit margin of 54.75%. These figures suggest that while the company may be facing revenue challenges, its ability to retain a significant portion of sales as gross profit remains robust.
InvestingPro Tips indicate that analysts have adjusted their earnings expectations downwards for the upcoming period, which could be a signal for investors to watch for potential shifts in the company's financial outlook. Additionally, the stock is currently trading near its 52-week high, with a price that is 96.11% of this peak. This could imply that the stock is valued optimistically by the market, especially as the Relative Strength Index (RSI) suggests that TTWO is in overbought territory.
For investors looking to delve deeper into Take-Two's financial health and future prospects, InvestingPro provides a comprehensive set of additional tips, with a total of 11 listed for TTWO. These tips can be accessed at https://www.investing.com/pro/TTWO. To enrich your investment decision-making process, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a more detailed analysis and insights that could be crucial in today's volatile market.
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