Activision Blizzard (NASDAQ:) is a video game developer that’s been in the headlines for all the wrong reasons.

Workplace complaints at the company have spiraled outof control. The SEC has begun an investigation into the company and Bobby Kotick (its CEO) was subpoenaed.

The September volatility has caused the stock to plummet 28% below its peak. The stock is in a very bad spot right now. However, with ATVI already trailing it, I remain neutral.

Activision Blizzard Plunges Further

It’s been quite the fall from grace for shares of Activision Blizzard. ATVI shares could be affected by its workplace practices.

It’s clear that there is an effort to change. There are employees who speak out as well as some of the leaders and executives leaving. The question investors are really asking is whether or not the company has the ability to make a significant change in order to improve its standing and restore its image.

Despite the fact that investors are pushing for the sell button, there is a possibility of more management turnover. During the current rush to the exits, Claire Hart, the Chief Legal Officer of the company, resigned.

It is difficult for investors to see how worse it can get in the wake of such a dramatic drop. Kotick will be brought to court. We’ll have to watch and wait.

ATVI stock was already punished despite the immense pressure.

Also, Diablo 2 Resurrected is coming out, as well as Call of Duty Vanguard. These releases may be overshadowed, though.

Wall Street’s Take

According to TipRanks’ analyst rating consensus, ATVI stock comes in as a Strong Buy. There are 15 Buy recommendations and 2 Hold recommendations among the 15 analysts ratings.

The average ATVI price target is $113.14. The price target ranges from $100 to $125, depending on the analyst.

Activision Blizzard already has price targets downgraded in the wake of recent stock tumbles. However, the analysts aren’t ready to abandon the company in the face of the negative headlines.

Can more management resignations cause relief rallies in a name now considered overpriced? We will have to watch and wait.

Disclosure: Joey Frenette was a shareholder in Activision Blizzard when this article was published.

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