Ubisoft (UBSFY) stock was down on Thursday after the video game developer and publisher announced a new subsidiary. Vantage Studios is a new creative house under Ubisoft that handles many of the company’s largest intellectual properties, including Assassin’s Creed, Far Cry, and Rainbow Six. Leading this new division are Charlie Guillemot and Christophe Derennes, who were announced as co-CEOs of the planned creative house earlier this year.
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Ubisoft noted that this is the first of several new creative houses that the company has planned as part of its transformation. The goal is to put similar brands under the same creative houses, allowing for shared experience and expertise to assist in the game development process, all while having the support of Ubisoft’s services and technical resources.
Ubisoft’s transformation plans come after a rough period for the video game company. Increased development costs, poor consumer reception, and other factors have weighed on its business recently. This prompted Tencent (TCHEY) to take a large stake in the company earlier this year.
Ubisoft Stock Movement Today
Ubisoft stock was down 0.43% on Thursday, extending a 15.44% year-to-date fall. The company’s stock has also dropped 1.45% over the past 12 months.
It appears investors aren’t overly impressed with the company’s new subsidiary and creative studio formation plans. This could be a signal that shareholders don’t have enough faith in Ubisoft to overcome its challenges without a more drastic overhaul of its operations.
Is Ubisoft Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Ubisoft is Hold, based on a single Hold rating over the past three months. With that comes a $2.50 price target for UBSFY, representing a potential 8.7% upside for the company’s shares.
