Take-Two Interactive Software Stock Is Falling Wednesday: Here's Why

Take-Two Interactive Software Inc TTWO shares are trading lower Wednesday after the company announced a proposed public offering of common stock.

What Happened: After the market close on Tuesday, Take-Two announced a proposed underwritten public offering of 4.75 million shares of common stock for $225 per share. All shares in the offering are being sold by the company.

Take-Two also granted the underwriters a 30-day window to purchase up to an additional 712,500 shares at the offering price.

The company anticipates total net proceeds of approximately $1.04 billion, or $1.19 billion if the underwriters exercise their option in full. Take-Two plans to use the proceeds for general corporate purposes, which may include the repayment of outstanding debt and future acquisitions. The offering is expected to close on May 22.

Take-Two had approximately $1.46 billion in cash and cash equivalents as of March 31.

Related Link: Palo Alto Networks, Take-Two Interactive Software, VF Corp And Other Big Stocks Moving Lower In Wednesday’s Pre-Market Session

Is TTWO A Good Stock To Buy?

Wall Street analysts view Take-Two Interactive on the whole as an Outperform, given the history of coverage over the past three months. Edward Woo from Ascendiant Capital is the most optimistic, expecting a 56.98% rise in the stock over the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, Take-Two Interactive rose 6.69%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 17.27% over the past year.

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TTWO Price Action: Take-Two Interactive shares were down 2.73% at $231.02 at the time of publication Wednesday, according to Benzinga Pro.

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