Investors Buy High Volume of Put Options on Under Armour (NYSE:UAA)

Key Points

• Unusual options activity: Investors bought 86,993 put options on Under Armour, roughly a 3,411% jump above the average daily volume, signaling a notable bearish tilt in trading.
• Insider buying continued: Major shareholder V Prem Watsa purchased 739,521 shares at $4.97 each, and insiders have bought 1.18 million shares over the last 90 days.
• Mixed fundamentals and cautious analyst outlook: Under Armour matched quarterly EPS expectations and revenue estimates, but revenue still fell 0.8% year over year. Wall Street’s consensus remains cautious, with an average rating of Reduce and a target price of $5.91.

Under Armour, Inc. (NYSE:UAA - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock investors bought 86,993 put options on the company. This is an increase of approximately 3,411% compared to the average daily volume of 2,478 put options.

Insider Transactions at Under Armour

In related news, major shareholder V Prem Et Al Watsa acquired 739,521 shares of Under Armour stock in a transaction on Wednesday, May 13th. The shares were purchased at an average cost of $4.97 per share, for a total transaction of $3,675,419.37. Following the purchase, the insider directly owned 44,179,116 shares of the company's stock, valued at $219,570,206.52. The trade was a 1.70% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have acquired 1,178,344 shares of company stock valued at $5,865,147 over the last 90 days. Corporate insiders own 15.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in UAA. Blair William & Co. IL increased its holdings in shares of Under Armour by 40.0% during the fourth quarter. Blair William & Co. IL now owns 5,164 shares of the company's stock valued at $26,000 after purchasing an additional 1,476 shares during the period. Vident Advisory LLC grew its position in Under Armour by 13.6% in the 4th quarter. Vident Advisory LLC now owns 12,651 shares of the company's stock valued at $63,000 after buying an additional 1,512 shares in the last quarter. NewEdge Advisors LLC increased its stake in Under Armour by 9.4% during the 1st quarter. NewEdge Advisors LLC now owns 23,908 shares of the company's stock valued at $141,000 after buying an additional 2,061 shares during the period. HUB Investment Partners LLC raised its position in shares of Under Armour by 12.9% during the 2nd quarter. HUB Investment Partners LLC now owns 21,810 shares of the company's stock worth $149,000 after buying an additional 2,489 shares in the last quarter. Finally, M&T Bank Corp raised its position in shares of Under Armour by 23.2% during the 2nd quarter. M&T Bank Corp now owns 13,296 shares of the company's stock worth $91,000 after buying an additional 2,504 shares in the last quarter. Institutional investors and hedge funds own 34.58% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently issued reports on UAA. Stifel Nicolaus set a $6.00 price target on Under Armour and gave the company a "hold" rating in a research report on Tuesday, May 12th. Zacks Research lowered shares of Under Armour from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 12th. The Goldman Sachs Group reissued a "neutral" rating and set a $6.00 target price on shares of Under Armour in a report on Wednesday, May 13th. Telsey Advisory Group reduced their price target on shares of Under Armour from $6.00 to $5.50 and set a "market perform" rating on the stock in a research report on Wednesday, May 13th. Finally, Wall Street Zen raised shares of Under Armour from a "sell" rating to a "hold" rating in a report on Sunday, May 24th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, fourteen have issued a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat, Under Armour currently has an average rating of "Reduce" and a consensus target price of $5.91.

Under Armour Stock Performance

Shares of UAA stock traded down $0.34 during trading hours on Wednesday, reaching $6.41. The stock had a trading volume of 2,775,050 shares, compared to its average volume of 9,953,378. The firm has a market capitalization of $2.73 billion, a PE ratio of -5.53, a price-to-earnings-growth ratio of 2.16 and a beta of 1.67. The firm has a 50-day simple moving average of $5.89 and a 200-day simple moving average of $6.10. Under Armour has a twelve month low of $4.13 and a twelve month high of $8.15. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.62 and a quick ratio of 1.08.

Under Armour (NYSE:UAA - Get Free Report) last posted its earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.03). Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. The firm had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.17 billion. During the same period in the previous year, the business posted ($0.08) EPS. Under Armour's revenue was down .8% on a year-over-year basis. Under Armour has set its FY 2027 guidance at 0.080-0.120 EPS and its Q1 2027 guidance at 0.000-0.020 EPS. As a group, equities analysts forecast that Under Armour will post 0.12 earnings per share for the current year.

Under Armour Company Profile

Under Armour, Inc NYSE: UAA is a global designer, marketer and distributor of performance athletic apparel, footwear and accessories. The company's product portfolio spans a range of categories including training and running shoes, performance apparel engineered to manage moisture and temperature, and a variety of accessories such as bags, socks and headwear. Under Armour positions its offerings to serve athletes at every level—from professionals to everyday fitness enthusiasts—by combining innovative fabrics, advanced footwear technology and functional design.

Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour initially gained recognition for its moisture-wicking T-shirts, which provided a lightweight alternative to traditional cotton.

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