Under Armour (NYSE:UA) Shares Down 4.3% - Should You Sell?

Key Points

• Under Armour shares fell 4.3% to about $5.01, below both the 50-day and 200-day moving averages near $6.15. Trading volume was roughly 57% below the daily average.
• Analysts remain bearish: one rates the stock Hold and two rate it Sell, producing a consensus rating of “Sell” and a $5.50 price target.
• The company slightly beat quarterly EPS estimates ($0.05 versus $0.02) but missed revenue expectations, posting $1.10 billion. CFO Reza Taleghani bought 18,656 shares, increasing his holdings by 27.05%, while insiders own 15.6% of the company.

Shares of Under Armour, Inc. (NYSE:UA - Get Free Report) traded down 4.3% during trading on Tuesday . The company traded as low as $5.01 and last traded at $5.0050. Approximately 1,575,167 shares changed hands during trading, a decline of 57% from the average daily volume of 3,697,676 shares. The stock had previously closed at $5.23.

Analyst Ratings Changes

A number of brokerages have commented on UA. Robert W. Baird set a $5.50 price objective on Under Armour in a research report on Wednesday, May 13th. Weiss Ratings raised shares of Under Armour from a "sell (d-)" rating to a "sell (d)" rating in a research note on Wednesday, August 19th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Sell" and a consensus price target of $5.50.

Under Armour Price Performance

The firm has a market capitalization of $2.15 billion, a P/E ratio of -4.36 and a beta of 1.59. The company has a 50-day moving average price of $6.17 and a 200-day moving average price of $6.14. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.96 and a current ratio of 1.81.

Under Armour (NYSE:UA - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.05 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. Under Armour had a positive return on equity of 4.04% and a negative net margin of 9.99%.The company had revenue of $1.10 billion during the quarter, compared to analysts' expectations of $1.11 billion. Under Armour has set its Q2 2027 guidance at -0.030--0.010 EPS and its FY 2027 guidance at 0.080-0.120 EPS.

Insider Activity

In other Under Armour news, CFO Reza Taleghani purchased 18,656 shares of the stock in a transaction on Tuesday, August 11th. The stock was bought at an average cost of $5.37 per share, for a total transaction of $100,182.72. Following the completion of the acquisition, the chief financial officer directly owned 87,621 shares of the company's stock, valued at $470,524.77. The trade was a 27.05% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 15.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Under Armour

Several large investors have recently made changes to their positions in the stock. International Assets Investment Management LLC grew its holdings in shares of Under Armour by 80.0% during the first quarter. International Assets Investment Management LLC now owns 4,500 shares of the company's stock worth $25,000 after buying an additional 2,000 shares in the last quarter. Western Wealth Management LLC bought a new stake in shares of Under Armour during the first quarter worth approximately $26,000. Symmetry Peak Management LLC acquired a new position in shares of Under Armour in the fourth quarter valued at about $48,000. Quarry LP bought a new stake in shares of Under Armour during the 3rd quarter valued at $53,000. Finally, Mercer Global Advisors Inc. ADV acquired a new stake in shares of Under Armour during the 4th quarter worth approximately $54,000. Institutional investors own 36.35% of the company's stock.

About Under Armour

Under Armour, Inc is a global designer, marketer and distributor of branded performance apparel, footwear and accessories. The company's product portfolio spans a wide range of athletic categories, including running, training, basketball, outdoor and golf, with specialized lines for men, women and youth. Under Armour emphasizes innovative fabrics and technologies designed to enhance athletic performance, such as moisture-wicking HeatGear®, cold-weather ColdGear® and UV-protective UA Tech™ materials.

The company was founded in 1996 by former University of Maryland football captain Kevin Plank, who sought to create a superior moisture-wicking T-shirt to keep athletes cool and dry.

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