Video Game Stock Powers Down After Analyst Bear Note

The company has delayed multiple video game releases recently

Assistant Editor
Sep 17, 2021 at 10:31 AM
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Take-Two Interactive Software Inc (NASDAQ:TTWO) is down 1.2% to trade at $150 this morning, after receiving a bear note from BMO Capital. The firm downgraded Take-Two Interactive stock to "market perform" from "outperform," and slashed its price target to $150 from $225, after the company delayed the release of multiple video games, including the new "Grand Theft Auto" version which will now miss the holiday window.

There's plenty of room for additional downgrades amongst the brokerage bunch going forward. Of the 19 analysts in coverage, 14 carry a "buy" or better rating, with the remaining five a tepid "hold." Meanwhile, the 12-month consensus price target of $208.92 is a 40.2% premium to current levels.  

There's ample pessimism in the options pits. Take-Two Interactive stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 70% of readings from the past year. This means that while calls are beating out puts on an absolute basis, puts are being picked up at a faster-than-usual rate. 

On the charts, TTWO has steadily worked lower over the course of the year, and now faces pressure from the $156 level for the first time since November 2020. The security is on track for its third weekly loss in four, and Take-Two Interactive stock has shed 28% year-to-date.

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