Have Take-Two Interactive Software Insiders Been Selling Stock?

Some Take-Two Interactive Software, Inc. (NASDAQ:TTWO) shareholders may be a little concerned to see that the Executive Chairman & CEO, Strauss Zelnick, recently sold a substantial US$10m worth of stock at a price of US$253 per share. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

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Take-Two Interactive Software Insider Transactions Over The Last Year

Notably, that recent sale by Executive Chairman & CEO Strauss Zelnick was not the only time they sold Take-Two Interactive Software shares this year. Earlier in the year, they fetched US$224 per share in a -US$16m sale. That means that even when the share price was below the current price of US$243, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 29% of Strauss Zelnick's stake.

Take-Two Interactive Software insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Take-Two Interactive Software

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Take-Two Interactive Software insiders own 0.4% of the company, currently worth about US$174m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Take-Two Interactive Software Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Take-Two Interactive Software you should know about.

Of course Take-Two Interactive Software may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.