Take-Two (NASDAQ:TTWO) Interactive Software Inc. (NASDAQ:TTWO) reported that its Chief Financial Officer, Lainie Goldstein, sold 14,321 shares of company stock on June 3, 2024, for a total transaction value of approximately $2.3 million. The shares were sold at an average price of $162.052 each.
The recent Form 4 filing with the Securities and Exchange Commission detailed several transactions involving Goldstein's holdings in the video game company known for popular titles like "Grand Theft Auto" and "NBA 2K." Notably, the sale did not reflect a discretionary trade by Goldstein but was instead executed pursuant to a pre-arranged Rule 10b5-1 plan, which is commonly used by corporate insiders to sell shares at predetermined times and prices to avoid allegations of insider trading.
In addition to the sale, the report disclosed the forfeiture of 13,078 performance-based restricted units previously granted to Goldstein. The forfeiture, which took place on May 31, 2024, was due to the failure to meet certain performance conditions. These forfeited units had no impact on the market, as their transaction price was $0.0.
Furthermore, the filing revealed the grant of 69,035 restricted units to Goldstein under the company's 2017 Stock Incentive Plan. This grant includes both time-based and performance-based restricted units, which are set to vest in future years contingent upon continued service and the achievement of specified performance targets.
Following these transactions, Goldstein's ownership in Take-Two Interactive Software Inc. includes 143,727 shares of common stock, 34,035 unvested time-based restricted stock units, and 185,584 unvested performance-based restricted stock units. The vesting of these awards will occur according to the terms of the applicable agreements.
These transactions offer a glimpse into the stock-based compensation and ownership structure for executives at Take-Two Interactive, providing investors with important information regarding the alignment of executive interests with those of shareholders. The timing and details of these transactions are publicly available for investors who closely monitor insider activity as part of their investment decision-making process.
InvestingPro Insights
Amidst the recent insider transactions at Take-Two Interactive Software Inc. (NASDAQ:TTWO), it's crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, Take-Two has a market capitalization of $28.4 billion, reflecting its significant presence in the gaming industry. However, the company has been operating at a loss, with an adjusted P/E ratio for the last twelve months as of Q4 2024 standing at -27.47, indicating that it has not been profitable over the past year. This is further substantiated by an operating income margin of -8.78% for the same period.
Despite these challenges, Take-Two's stock has experienced substantial growth, with a 1 Year Price Total Return reaching 18.99%. This performance is noteworthy, especially when considering that the stock is trading near its 52-week high, at 96.72% of the peak price. Moreover, an InvestingPro Tip suggests that analysts predict the company will be profitable this year, which could signal a turnaround for the company's financial prospects.
Investors should also be aware that the company's stock is currently in overbought territory, according to the Relative Strength Index (RSI), a momentum indicator used in technical analysis. This could suggest that the stock price may be due for a correction in the near future. Additionally, Take-Two does not pay a dividend to shareholders, which might be a factor for income-focused investors to consider.
For those looking to delve deeper into Take-Two Interactive's financials and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/TTWO. By using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could aid in making informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.