A lot in the past year Take-Two Interactive Software, Inc. (NASDAQ:TTWO) insiders sold a substantial stake in the company, which may have caught the attention of shareholders. Knowing whether insiders are buying is usually more useful when evaluating insider transactions because insider sales can have several explanations. However, shareholders should look deeper if multiple insiders are selling shares over a period of time.
While we would never suggest that investors should base their decisions solely on what a company’s directors have done, we would think it foolish to ignore insider transactions altogether.
Check out our latest analysis for Take-Two Interactive Software
Over the past year, we can see that the largest insider sale was by Chief Financial Officer, Lainie Goldstein, for $8.8 million worth of stock, at about $179 per share. That means an insider sold shares at slightly below the current price (US$188). We generally view it as a negative when insiders have sold, especially if they did so below the current price, as this implies that they considered a lower price to be fair. While insider selling can sometimes be discouraging, it is only a weak signal. We note that the largest single sale was for only 35% of Lainie Goldstein’s stake.
Take-Two Interactive Software insiders haven’t bought any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the past year. By clicking on the chart below you can view the precise details of each insider transaction!
If you like buying stocks that insiders are buying, rather than selling, you might like this free list of companies. (Hint: most fly under the radar).
There was significant insider selling of Take-Two Interactive Software stock last quarter. Specifically, insiders dumped $18 million worth of stock during that time, and we didn’t record a single purchase. In light of this, it’s hard to argue that all insiders think the stock is a bargain.
I like to look at how many shares insiders own in a company, to help inform my opinion on how aligned they are with insiders. I think it’s a good sign if insiders own a significant number of shares in the company. Take-Two Interactive Software insiders own about $132 million worth of stock (which is 0.4% of the company). This type of significant insider ownership usually increases the likelihood that the company is run in the interests of all shareholders.
Insiders recently sold Take-Two Interactive Software shares, but they didn’t buy any. Looking at the last twelve months, our data shows no insider purchasing. The company has high insider ownership, but we’re a bit cautious given its history of share sales. So these insider transactions can help us build a thesis on the stock, but it’s also worth knowing what risks this company faces. Example: We’ve seen it 2 warning signs for Take-Two Interactive Software you have to take it into account.
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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. Currently, we only consider open market transactions and private dispositions involving direct interests, but not derivative transactions or indirect interests.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.
