Major Investors Trim Positions Ahead of Take-Two’s Earnings Report

Take-Two Interactive, the publisher behind major franchises like Grand Theft Auto and NBA 2K, is sending conflicting signals to the market as it approaches its quarterly earnings release. Despite its share price hovering near a 52-week high, recent regulatory filings reveal a notable pullback by several institutional investors, raising questions about their confidence in the upcoming results.

All eyes are on Tuesday, February 3, 2026, when the company is scheduled to report its third-quarter financials after the market closes. Consensus estimates from analysts point to earnings per share of $0.83 and revenue of approximately $1.58 billion. The expert community appears divided on the stock's near-term prospects. While BMO Capital Markets maintains an "Outperform" rating, signaling confidence in its potential, UBS advises caution with a "Hold" recommendation. This divergence in opinion follows a previous quarter where Take-Two surpassed expectations but simultaneously grappled with negative margins.

Notable Institutional Selling

Data released this Wednesday highlights significant position reductions by major funds. Strs Ohio slashed its stake in the video game publisher by more than 61 percent. In a separate move, Masterinvest Kapitalanlage GmbH reportedly sold off nearly half of its shareholding at the start of the week. Such substantial divestments by large-scale investors immediately before a key corporate event are closely scrutinized. Market observers suggest this activity could represent profit-taking following a strong 12-month performance, where the stock has advanced over 37 percent, or simply a strategic de-risking maneuver ahead of potentially volatile news.

Should investors sell immediately? Or is it worth buying Take-Two?

Technical and Valuation Context

Even with this selling pressure, the equity remains elevated, currently trading around $247. However, technical indicators suggest the rally may be overextended. The Relative Strength Index (RSI) sits at a level near 84, placing it firmly in overbought territory and indicating increased vulnerability to a short-term price correction.

The long-term investment thesis for Take-Two continues to revolve around the anticipated release of Grand Theft Auto VI, expected to be a major catalyst. For the immediate future, however, the financial figures released on February 3rd are likely to set the directional tone. Should the company's earnings guidance disappoint, the recent disposals by large investors may be viewed in hindsight as a prescient warning signal.