Take-Two Stock Story

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Gabriel Shpitalnik .  Story
TTWO
 Stock
  

USD 124.86  2.33  1.90%   

By Gabriel Shpitalnik
Macroaxis Story
Lets try to outline the odds of Take-Two Interactive to fully recover from the latest slide as its shares went up 0.16%. Take-Two Interactive current daily volatility is 2.46 percent, with a beta of 0.91 and an alpha of -0.51 over DOW. As many baby boomers are still indifferent towards current volatility, it makes sense to outline Take-Two Interactive. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Take-Two Interactive Current Investor Sentiment

Investor biases related to Take-Two Interactive's public news can be used to forecast risks associated with investment in Take-Two. The trend in average sentiment can be used to explain how an investor holding Take-Two can time the market purely based on public headlines and social activities around Take-Two Interactive. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Take-Two Interactive's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Take-Two Interactive's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Take-Two Interactive's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Take-Two Interactive.

Take-Two Interactive Maximum Pain Price across 2022-07-08 Option Contracts

Take-Two Interactive's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Take-Two Interactive close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Take-Two Interactive's options.
Is Take Two Interactive (NASDAQ:TTWO) way too risky for millennials?
The company conducts business under Communication Services sector and is part of Electronic Gaming & Multimedia industry.
Investing in Take-Two Interactive, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Take-Two Interactive along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Take-Two Interactive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Take-Two Interactive in the context of predictive analytics.
Hype
Prediction
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Intrinsic
Valuation
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Naive
Forecast
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17 Analysts
Consensus
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Take-Two Interactive. Your research has to be compared to or analyzed against Take-Two Interactive's peers to derive any actionable benefits. When done correctly, Take-Two Interactive's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Take-Two Interactive.

How important is Take-Two Interactive's Liquidity

Take-Two Interactive financial leverage refers to using borrowed capital as a funding source to finance Take-Two Interactive ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Take-Two Interactive financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Take-Two Interactive's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Take-Two Interactive, but it might be worth checking our own buy vs. sell analysis

Take-Two Interactive Correlation with Peers

Investors in Take-Two can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Take-Two Interactive. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Take-Two Interactive and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Take-Two is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Take-Two for more details

Sale by Daniel Emerson of 3381 shares of Take-Two Interactive

Legal trades by Take-Two Interactive insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Take-Two insider trading alert for sale of common stock by Daniel Emerson, Chief Legal Officer, on 17th of June 2022. This event was filed by Take Two Interactive Soft with SEC on 2022-06-17. Statement of changes in beneficial ownership - SEC Form 4. Daniel Emerson currently serves as executive vp and general counsel of Take-Two Interactive [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Outlook On Take-Two Interactive

Take-Two Interactive owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.26, which indicates the firm had -0.26% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Take-Two Interactive exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate Take-Two Interactive risk adjusted performance of (0.34), and Coefficient Of Variation of (377.00) to confirm the risk estimate we provide.

Take-Two showing proof of lower volatility

Treynor Ratio just dropped to -0.72, may entail upcoming price decrease. Take-Two Interactive exhibits very low volatility with skewness of -0.45 and kurtosis of 0.59. However, we advise investors to further study Take-Two Interactive technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Take-Two Interactive's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Take-Two Interactive's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Take-Two Interactive Implied Volatility

Take-Two Interactive's implied volatility exposes the market's sentiment of Take-Two Interactive stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Take-Two Interactive's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Take-Two Interactive stock will not fluctuate a lot when Take-Two Interactive's options are near their expiration.

Our Final Take On Take-Two Interactive

Whereas few other entities in the electronic gaming & multimedia industry are either recovering or due for a correction, Take-Two may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take in nor exit any shares of Take-Two Interactive at this time. The Take-Two Interactive risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Take-Two Interactive.

Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Take-Two Interactive. Please refer to our Terms of Use for any information regarding our disclosure principles.

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