Take-Two Interactive Software Inc. (NASDAQ:TTWO): An Opportunity for Fundamental Investors?

Take-Two Interactive Software Inc. (NASDAQ:TTWO) shares traded lower over the last trading session, losing -3.99% on 05/22/20. The shares fell to a low of $138.63 before closing at $134.91. Intraday shares traded counted 2.18 million, which was 11.55% higher than its 30-day average trading volume of 2.47M. TTWO’s previous close was $140.51 while the outstanding shares total 113.25M. The firm has a beta of 0.55, a 12-month trailing P/E ratio of 39.68, and a growth ratio of 2.98. The stock’s Relative Strength Index (RSI) is 55.87, with weekly volatility at 4.60% and ATR at 4.82. The TTWO stock’s 52-week price range has touched low of $100.00 and a $149.28 high.

Investors have identified the Electronic Gaming & Multimedia company Take-Two Interactive Software Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $15.91 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Take-Two Interactive Software Inc. (TTWO) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For TTWO, the company has in raw cash 1.9 billion on their books with 25.19 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 3493351000 million total, with 2038539000 million as their total liabilities.

TTWO were able to record 632.29 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 601.41 million. In cash movements, the company had a total of 685.68 million as operating cash flow.

Potential earnings growth for Take-Two Interactive Software Inc. (TTWO)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Take-Two Interactive Software Inc. recorded a total of 760.54 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 29.13% coming in sequential stages and their sales for the third quarter reducing by -22.3%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 395.64 million trying to sell their products during the last quarter, with the result yielding a gross income of 364.9 million. This allows shareholders to hold on to 113.25M with the revenue now reading 1.10 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.56 cents a share).

Having a look at the company’s valuation, the company is expected to record 3.65 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TTWO sounds very interesting.

Is the stock of TTWO attractive?

In related news, Chief Financial Officer, Goldstein Lainie sold 16,933 shares of the company’s stock in a transaction that recorded on May 18. The sale was performed at an average price of 135.01, for a total value of 2,286,043. As the sale deal closes, the Chief Financial Officer, Goldstein Lainie now sold 23,067 shares of the company’s stock, valued at 3,114,130. Also, Chief Legal Officer, Emerson Daniel P sold 213 shares of the company’s stock in a deal that was recorded on May 04. The shares were price at an average price of 123.61 per share, with a total market value of 26,329. Following this completion of acquisition, the Chief Legal Officer, Emerson Daniel P now holds 405 shares of the company’s stock, valued at 48,551. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.

16 out of 28 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Take-Two Interactive Software Inc.. 0 analysts has assigned a Sell rating on the TTWO stock. The 12-month mean consensus price target for the company’s shares has been set at $132.21.