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Many Take-Two Interactive Software, Inc. (NASDAQ:TTWO) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Take-Two Interactive Software
The Last 12 Months Of Insider Transactions At Take-Two Interactive Software
Over the last year, we can see that the biggest insider sale was by the Chief Financial Officer, Lainie Goldstein, for US$8.8m worth of shares, at about US$179 per share. That means that even when the share price was below the current price of US$185, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 35% of Lainie Goldstein's holding.
In the last year Take-Two Interactive Software insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Take-Two Interactive Software Insiders Are Selling The Stock
The last three months saw significant insider selling at Take-Two Interactive Software. In total, insiders dumped US$18m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Take-Two Interactive Software
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Take-Two Interactive Software insiders own 0.4% of the company, worth about US$127m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.