These Companies’ Top Executives Are Selling Shares; Should Investors be Concerned?

Last but not least, Take-Two Interactive Software Inc. (NASDAQ:TTWO) had its top executive sell shares over the past few days. Chairman and Chief Executive Officer Strauss H. Zelnick reported selling 2,500 shares on Friday and 28,944 shares yesterday, at a price of $35.00 per share, all of which were held by the Zelnick Belzberg Living Trust. After the recent sale, the trust fund holds 195,744 shares, which are indirectly held by the CEO. Moreover, the CEO owns an additional indirect ownership stake of 135,000 shares, which is held by the Wendy Jay Belzberg 2012 Family Trust.

The developer and publisher of interactive entertainment has seen its shares advance by 26% over the past 12 months and by 79% over the past 24 months, so the recent insider selling at the company should not surprise investors. Take-Two Interactive generated $1.04 billion in revenue during the nine-months that ended December 31, up from $782.85 million reported for the same period of the prior year. Numerous financial hubs reiterated or even amplified their bullish views on the company, after Take-Two Interactive released its earnings report for the third quarter of fiscal year 2016 earlier this month. Cowen reiterated its ‘Outperform’ rating on the stock and lifted its price target on it to $43 from $36, while Jefferies restated its ‘Buy’ rating and raised its price target to $41 from $39. Although the company’s Grand Theft Auto series accounted for slightly more than 56% of total net revenue for the nine-month period that ended December 31, analysts believe that the fifth game’s multiplayer component, known as Grand Theft Auto Online, will continue growing at a rapid pace. Meanwhile, the company’s strategy currently focuses on expanding its distribution of existing products and growing its online gaming presence, particularly in China and South Korea, which might also boost sales in the future. Ricky Sandler’s Eminence Capital acquired a 3.47 million-share stake in Take-Two Interactive Software Inc. (NASDAQ:TTWO) during the third quarter.

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