Billionaire Halvorsen Makes 2 Big Bets on Natural Gas, While Take-Two Interactive and Eagle Pharmaceuticals Get Some Love

According to a Schedule 13G filing, Ricky Sandler’s Eminence Capital LP currently owns 4.58 million shares of Take-Two Interactive Software Inc. (NASDAQ:TTWO), which make up 5.4% of the company’s shares. This compares to 3.47 million shares owned at the end of September. The developer and publisher of interactive entertainment has seen its shares gain 10% over the past year, mainly owing to the success of the company’s Grand Theft Auto games, which accounted for approximately 64% of Take-Two’s net revenue for the six months that ended September 30. That net revenue increased by $370.6 million to $622.27 million. Although Take-Two Interactive Software has been doing great in terms of both stock and financial performance, there are several nuances that investors should be aware of when investing in the company. First of all, the company’s net revenue from digital online channels dropped to 57.3% of its net revenue for the six-month period, down from $63.9% reported a year earlier, which could put some weight on profit margins. Secondly, Take-Two Interactive Software mostly depends on its Grand Theft Auto franchise, which is yet another risk factor investors should be cautious of, as customer preferences are often transitory, although popular video game series tend to have a lot of staying power.

In November 2015, Mizuho reiterated its ‘Buy’ rating on the stock and lifted its price target to $37 from $33, which suggests an upside of at least 10%. The hedge fund sentiment towards the stock was negative in the third quarter however, with the number of funds invested in the company declining to 35 from 40 quarter-over-quarter. David Einhorn’s Greenlight Capital holds a 4.16 million-share position in Take-Two Interactive Software Inc. (NASDAQ:TTWO) as of September 30.