Take-Two (NASDAQ:TTWO) Interactive Software Inc. (NASDAQ:TTWO) CEO Strauss Zelnick has sold a total of $13.96 million worth of company stock, as disclosed in a recent SEC filing. The transactions, which occurred on May 31, 2024, involved sales of shares at prices ranging from $158.96 to $160.65.
The sale was executed in multiple transactions with the weighted average sales price of the shares sold in the range of $158.46 to $159.46 for 49,402 shares, $159.47 to $160.47 for 32,054 shares, and $160.48 to $160.84 for 6,105 shares. These sales were made under a pre-arranged Rule 10b5-1 trading plan, which allows insiders to sell shares at predetermined times to avoid accusations of insider trading.
In addition to the sales, the filing also reported the forfeiture of 67,920 performance-based restricted units due to the failure to meet certain conditions. Furthermore, 84,128 shares were distributed to ZMC Advisors, L.P. employees following the vesting of restricted units. It's important to note that Zelnick is a partner at ZMC Advisors, L.P., and disclaims beneficial ownership of the securities held by the firm except to the extent of his pecuniary interest.
The SEC filing also indicated the annual grant of 516,179 restricted units to ZMC Advisors, L.P. on June 3, 2024, which includes both time-based and performance-based restricted units.
Zelnick's transactions come amidst a dynamic period for Take-Two Interactive , known for its prominent role in the video game industry with titles like "Grand Theft Auto" and "NBA 2K." Investors often keep a close eye on insider sales for hints about executives' confidence in the company's future prospects.
The stock sales by Zelnick represent a significant transaction for both the executive and the company, providing investors with insights into insider activity at Take-Two Interactive.
InvestingPro Insights
As Take-Two Interactive Software Inc. (NASDAQ:TTWO) navigates a period of dynamic change, with high-profile insider sales capturing the attention of the market, investors are keen to understand the underlying financial health and valuation of the company. According to real-time data from InvestingPro, Take-Two has a market capitalization of $28.4 billion, reflecting the scale of its operations within the video game industry. However, the company's P/E ratio stands at -7.53, indicating that it has not been profitable over the last twelve months as of Q4 2024. This is further corroborated by an adjusted P/E ratio of -27.47 for the same period.
Despite this, the company's stock has been performing well in the market, with a 1 Year Price Total Return of 18.99%, suggesting investor confidence in its future growth potential. An InvestingPro Tip highlights that analysts predict the company will be profitable this year, which could explain the positive market sentiment. Additionally, the stock is trading near its 52-week high, at 96.72% of the peak price, which aligns with the CEO's recent stock sales at prices ranging from $158.96 to $160.65.
Another InvestingPro Tip indicates that Take-Two is trading at a high revenue valuation multiple, which may be of interest to investors considering the stock's valuation relative to its sales. With insights from InvestingPro, including 11 more tips available for TTWO, investors can gain a deeper understanding of the company's financial position and market valuation. For those looking to access these additional insights, they can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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