Take-Two CEO, Chairman and Director Strauss Zelnick has sold shares in Take-Two (TTWO) worth $6.07 million, according to a recent SEC filing.
He made the informative sell transaction of the company’s common stock on August 19. This is the first informative TTWO transaction Zelnick has made since August 2019.
Shares in the video gaming company are up just over 40% so far year-to-date, and analysts have a cautiously optimistic Moderate Buy consensus on the stock’s outlook. That’s alongside a $184 average analyst price target, indicating limited upside potential of just 6% for the coming months.
Oppenheimer’s Andrew Uerkwitz is one of the more bullish analysts covering Take-Two. After the company reported earning results that far exceeded guidance and expectations, Uerkwitz reiterated a buy rating on the stock and ramped up his price target from $155 to $190.
TTWO reported FY1Q21 net bookings of $996M vs. the Street’s $824M estimates driven by record performance from NBA 2K20 and GTA Online, along with broad engagement and audience growth associated with shelter-in-place restrictions.
“Given many industry tailwinds (new consoles, accelerated digitization, continued stay-at-home orders) and several large, highly anticipated, AAA titles coming over the next several years… we believe investors will pay a significant premium to own TTWO” the analyst wrote on August 4.
However Uerkwitz did warn that while 2021 has upside, he is ‘not so sure’ about 2022.
“We don’t expect a COVID-19 benefit in FY22—a console transition leaves open a few questions on RDO/GTAO—and we do not expect a major title from Rockstar, Cloud Chambers, or 31st Union, so we struggle to find growth in FY22, for which the Street is modeling —$3.3B in net bookings” he commented.
For FY22, the analyst is modelling $2.7B in bookings, adding that “TakeTwo’s management has a strong track record of success . . . so we will believe in it, keep the faith.” (See TTWO stock analysis on TipRanks).
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