NEW YORK - Take-Two (NASDAQ:TTWO) Interactive Software, Inc. (NASDAQ: TTWO), a prominent interactive entertainment company, has priced an underwritten public secondary offering of shares held by Embracer Group AB. The offering consists of 2,830,084 shares of common stock at a public price of $154.50 per share. These shares were initially issued to Embracer Group on Monday as part of the acquisition of The Gearbox Entertainment Company, Inc.
The transaction, which involves only the resale of existing shares, will not yield any proceeds for Take-Two. The closing of the offering is anticipated on June 14, 2024, subject to the satisfaction of customary closing conditions.
Goldman Sachs & Co. LLC is acting as the sole underwriter for the offering. The offering is conducted in accordance with Take-Two’s shelf registration statement on Form S-3, which was filed with the Securities and Exchange Commission (SEC) on the date of the acquisition.
Headquartered in New York City, Take-Two is known for developing, operating, and publishing interactive entertainment products across various platforms, including console gaming systems, PC, and mobile devices. The company's common stock is traded on NASDAQ under the ticker symbol TTWO.
This information is based on a press release statement from Take-Two Interactive .
In other recent news, Take-Two Interactive Software, a prominent game publisher, has initiated a public secondary offering of 2,830,084 shares of its common stock. These shares, currently held by Embracer Group AB, are associated with Take-Two's recent acquisition of The Gearbox Entertainment Company. The secondary offering is a resale of shares, and Take-Two will not receive any proceeds from this transaction. Goldman Sachs & Co. LLC has been appointed as the sole underwriter for the offering.
In terms of analyst ratings, BofA Securities has upgraded Take-Two's stock from Neutral to Buy, raising the price target to $185, citing the anticipation of new game releases. Similarly, Roth/MKM reiterated its Buy rating and maintained a price target of $180. However, Baird slightly reduced its price target for Take-Two to $172 but maintained an Outperform rating.
Take-Two has also recently reported financial results that exceeded market expectations, with bookings for the first quarter of fiscal year 2025 projected 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.
InvestingPro Insights
In light of the recent public secondary offering of shares by Take-Two Interactive Software, Inc., InvestingPro provides additional insights that may be of interest to investors considering the company's stock. Take-Two, known for its robust portfolio in interactive entertainment, is trading at a price close to its 52-week high, with a previous close at $158.51, signaling strong investor confidence. The company has a market capitalization of $27.17 billion, reflecting its significant presence in the industry.
Investors should note that Take-Two has been trading with low price volatility, as per an InvestingPro Tip. This suggests that the stock price has been relatively stable, which might appeal to risk-averse investors. Additionally, despite recent performance challenges, analysts predict the company will return to profitability this year, another critical InvestingPro Tip to consider.
From a financial metrics standpoint, Take-Two's P/E ratio stands at -7.25, with an adjusted P/E for the last twelve months as of Q4 2024 at -26.23, indicating that the market has expectations of future growth despite recent losses. The company's Price / Book ratio for the same period is 4.79, which is relatively high, suggesting that the stock may be trading at a premium compared to its book value. Moreover, the company does not pay a dividend, which may influence investment decisions for those seeking regular income from their stock holdings.
For those looking for a deeper dive into Take-Two's financials and future outlook, the full suite of InvestingPro Tips can be accessed at https://www.investing.com/pro/TTWO. There are additional tips available, offering comprehensive insights into the company's financial health and stock performance. To enhance your investing strategy with these exclusive insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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