Under Armour (NYSE:UA) Stock Passes Below 50 Day Moving Average - Here's What Happened

Key Points

• Under Armour shares fell below their 50-day moving average, reaching as low as $5.01 and last trading at $5.09, compared with a 50-day average of $6.05.
• Analyst sentiment remains negative: one analyst rates the stock Hold and two rate it Sell, producing a consensus Sell rating and a $5.50 price target.
• The company slightly beat quarterly EPS expectations, reporting $0.05 versus $0.02 expected, but revenue of $1.10 billion fell short of forecasts and net margin remained negative. CFO Reza Taleghani separately bought 18,656 shares, increasing his position by 27.05%.

Under Armour, Inc. (NYSE:UA - Get Free Report) crossed below its 50 day moving average during trading on Thursday . The stock has a 50 day moving average of $6.05 and traded as low as $5.01. Under Armour shares last traded at $5.09, with a volume of 2,156,463 shares trading hands.

Analyst Ratings Changes

UA has been the subject of a number of recent analyst reports. Weiss Ratings upgraded Under Armour from a "sell (d-)" rating to a "sell (d)" rating in a research report on Wednesday, August 19th. Robert W. Baird set a $5.50 price target on Under Armour in a research report on Wednesday, May 13th. One investment analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Under Armour presently has a consensus rating of "Sell" and a consensus target price of $5.50.

Under Armour Stock Performance

The firm has a market cap of $2.19 billion, a P/E ratio of -4.43 and a beta of 1.54. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.96 and a current ratio of 1.81. The company's 50 day moving average is $6.05 and its 200 day moving average is $6.03.

Under Armour (NYSE:UA - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The company reported $0.05 earnings per share for the quarter, topping the consensus estimate 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 for 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 Buying and Selling at Under Armour

In other Under Armour news, CFO Reza Taleghani bought 18,656 shares of the stock in a transaction on Tuesday, August 11th. The stock was acquired 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 owned 87,621 shares in the company, valued at $470,524.77. This trade represents a 27.05% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 15.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fairfax Financial Holdings Ltd. Can bought a new position in shares of Under Armour in the fourth quarter valued at approximately $45,395,000. Millennium Management LLC grew its holdings in Under Armour by 153.7% during the third quarter. Millennium Management LLC now owns 2,346,929 shares of the company's stock worth $11,336,000 after buying an additional 1,421,981 shares in the last quarter. Corient Private Wealth LP bought a new stake in Under Armour during the second quarter worth $6,275,000. Corient Private Wealth LLC raised its position in Under Armour by 99.8% in the 2nd quarter. Corient Private Wealth LLC now owns 2,005,844 shares of the company's stock valued at $13,018,000 after buying an additional 1,002,037 shares during the last quarter. Finally, Picton Mahoney Asset Management purchased a new stake in Under Armour in the 4th quarter valued at $3,999,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.