Take-Two is poised for a post-earnings pop today, bouncing off its lowest level of 2024
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) stock is up 7.2% premarket to trade at $147.49, brushing off a revenue miss after the video game maker reported better-than-expected fiscal first-quarter profits. The company attributed lackluster top-line results to higher marketing costs, but did not provide a new release date for its new "Grand Theft Auto" game.
Take-Two stock is looking to bounce off its lowest level since November, and is set to test the 20-day moving average, which emerged as a level of pressure halfway through June. TTWO is also looking to chip away at their 13.8% year-to-date deficit, after notching its worst weekly loss since Feb. 9 to kick off August.
Moffett Nathanson chimed in with a price-target hike to $168 from $160 this morning. That's notable because the brokerage bunch is already bullish toward Take-Two Interactive stock, with 20 of 23 firms in coverage calling it a "buy" or better. Plus, the 12-month consensus target price of $177.64 is 28% higher than yesterday's close.
Options traders are betting rather bearishly though. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), TTWO's 50-day put/call volume ratio of 1.06 stands higher than 93% of annual readings.
A premium-selling strategy could be the move, given TTWO's Schaeffer's Volatility Scorecard (SVS) sits down at 7 out of 100. In other words, the stock has consistently realized lower volatility than its options have priced in.