Under Armour (NYSE:UAA) Share Price Breaks Above 50 Day Moving Average - Time to Sell?

Key Points

• Under Armour shares rose 5.1% and broke above their 50-day moving average, reaching $5.03 before last trading near $5.005 on volume of roughly 7.3 million shares.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce” from MarketBeat, with a $5.69 average price target; ratings range from Strong Buy to Sell.
• The company modestly beat quarterly EPS expectations ($0.05 versus $0.02), but revenue fell 3.2% year over year to $1.10 billion and net margin remained negative. CFO Reza Taleghani also purchased about $100,000 of shares, increasing his position by 27%.

Under Armour, Inc. (NYSE:UAA - Get Free Report)'s stock price passed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $4.87 and traded as high as $5.03. Under Armour shares last traded at $5.0050, with a volume of 7,281,631 shares traded.

Analyst Ratings Changes

A number of equities research analysts have issued reports on UAA shares. Morgan Stanley set a $4.00 price target on Under Armour and gave the company an "equal weight" rating in a research note on Thursday, September 10th. Weiss Ratings raised shares of Under Armour from a "sell (d-)" rating to a "sell (d)" rating in a research report on Tuesday, August 11th. UBS Group reiterated a "buy" rating and issued a $8.00 price objective (down from $9.00) on shares of Under Armour in a research note on Wednesday. Truist Financial raised their price objective on shares of Under Armour from $5.00 to $6.00 and gave the stock a "hold" rating in a report on Monday, August 10th. Finally, Barclays lowered shares of Under Armour from an "equal weight" rating to an "underweight" rating and set a $5.00 target price for the company. in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus target price of $5.69.

Under Armour Trading Up 5.1%

The company has a market capitalization of $2.15 billion, a P/E ratio of -4.35, a PEG ratio of 1.79 and a beta of 1.62. 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 stock has a fifty day moving average of $4.87 and a 200 day moving average of $5.94.

Under Armour (NYSE:UAA - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.02 by $0.03. The business had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.11 billion. Under Armour had a positive return on equity of 4.04% and a negative net margin of 9.99%. Under Armour's revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.02 earnings per share. Under Armour has set its FY 2027 guidance at 0.080-0.120 EPS and its Q2 2027 guidance at -0.030--0.010 EPS. As a group, equities research analysts anticipate that Under Armour, Inc. will post 0.10 EPS for the current fiscal year.

Insider Buying and Selling at Under Armour

In related news, CFO Reza Taleghani acquired 18,656 shares of the business's stock in a transaction that occurred 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 purchase, the chief financial officer owned 87,621 shares in the company, valued at $470,524.77. The trade was a 27.05% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 15.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Under Armour

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UAA. Dimensional Fund Advisors LP boosted its holdings in Under Armour by 17.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 8,531,173 shares of the company's stock worth $50,416,000 after buying an additional 1,285,384 shares during the period. State Street Corp increased its stake in Under Armour by 27.8% in the 2nd quarter. State Street Corp now owns 7,682,658 shares of the company's stock worth $49,092,000 after buying an additional 1,669,312 shares in the last quarter. Group One Trading LLC increased its stake in Under Armour by 378.3% in the 1st quarter. Group One Trading LLC now owns 1,568,227 shares of the company's stock worth $9,268,000 after buying an additional 2,131,642 shares in the last quarter. Credit Industriel ET Commercial purchased a new stake in Under Armour in the 1st quarter worth $9,080,000. Finally, Quantinno Capital Management LP increased its stake in Under Armour by 100.9% in the 1st quarter. Quantinno Capital Management LP now owns 1,226,299 shares of the company's stock worth $7,247,000 after buying an additional 615,828 shares in the last quarter. Institutional investors own 34.58% of the company's stock.

About Under Armour

Under Armour, Inc develops, markets and distributes performance apparel, footwear and accessories under the Under Armour brand. Its products are designed for athletes and active consumers and include training and competition apparel, sports bras, outerwear, athletic shoes, bags, headwear and other accessories. The company's product technologies include fabric and footwear platforms such as HeatGear, ColdGear, HOVR and UA Flow.

Under Armour sells its products through wholesale distributors and retailers, as well as through its own brand and factory stores and digital commerce platforms.

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