GameStop Estimates Cut To $45.00 By SunTrust; 'Battlefront' May Deliver Holiday Pressure

GameStop Corp. (NYSE: GME) had its price target dropped by analysts at SunTrust from $50.00 to $45.00 on Thursday. SunTrust wrote in a research note issued to investors that the firm currently has a Buy rating on the stock. SunTrust's price target is an indicator of a potential upside of 38.72 percent from the stock's previous close.

The company has a month low of $31.69 and a 12-month high of $47.83.

GameStop's Recent Performance

GameStop's stock had traded down about 3 percent in a down market on Wednesday, possibly due to the price cut that the retailer had recently placed on its "Star Wars: Battlefront" game. Reviews for the game have been mixed so far. While it was not its greatest title, SunTrust analysts are still viewing it as a main cause to cut their 4Q to the lower end of the guidance range.

Related Link: GameStop Warns "Star Wars: Battlefront" Sales Weaker Than Anticipated

The price cut on "Star Wars: Battlefront" may only be a temporary discouragement for investors, as SunTrust noted that this is only just one title by GameStop. The analysts are still quite confident that another marquee 4Q name could be expected, which might contribute as much as 2 percent to 3 percent of GameStop's 4Q video game business.

Insider

Last month, Director Steven R. Koonin sold 1,250 shares of GameStop. The shares were sold at an average price of $35.39, for a transaction total of $44,237.50. COO Tony Bartel had sold 13,795 shares of GameStop stock in a transaction on Tuesday, October 20. The shares were sold at an average price of $45.00. The total of the transaction was $620,775.00. GameStop's COO owns 320,003 shares in the company, valued at $14,400,135.

Shares of GameStop traded down 1.588 percent on Thursday during mid-day trading, reaching $31.925; the stock had a trading volume of 579,787 shares. GameStop has a market cap of $3.36 billion and a P/E ratio of 8.614.

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