Trade-Ideas LLC identified
) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Take-Two Interactive Software as such a stock due to the following factors:
- TTWO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $33.6 million.
- TTWO has traded 656,178 shares today.
- TTWO traded in a range 253% of the normal price range with a price range of $1.73.
- TTWO traded above its daily resistance level (quality: 25 days, meaning that the stock is crossing a resistance level set by the last 25 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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More details on TTWO:
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment for consumers worldwide. The company offers its products under the Rockstar Games and 2K labels. Currently there are 9 analysts that rate Take-Two Interactive Software a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Take-Two Interactive Software has been 1.5 million shares per day over the past 30 days. Take-Two Interactive Software has a market cap of $3.0 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.73 and a short float of 14% with 13.01 days to cover. Shares are up 1.6% year-to-date as of the close of trading on Monday.
rates Take-Two Interactive Software as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, TTWO's share price has jumped by 37.14%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- TTWO, with its decline in revenue, underperformed when compared the industry average of 4.4%. Since the same quarter one year prior, revenues fell by 22.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, TAKE-TWO INTERACTIVE SFTWR's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $168.81 million or 12.23% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Take-Two Interactive Software Ratings Report.