Under Armour (NYSE:UAA) Trading Down 3.6% - Here's Why

Key Points

• Under Armour shares fell 3.6% to about $5.17, with trading volume roughly 85% below the daily average.
• Analyst sentiment remains cautious: the stock has a consensus rating of “Reduce” and an average price target of $5.94, despite targets ranging from $4.75 to $9.00.
• The company beat quarterly EPS expectations, reporting $0.05 versus $0.02 expected, but revenue declined 3.2% year over year to $1.10 billion. Separately, CFO Reza Taleghani bought 18,656 shares, increasing his holdings by 27.05%.

Shares of Under Armour, Inc. (NYSE:UAA - Get Free Report) fell 3.6% on Tuesday . The company traded as low as $5.18 and last traded at $5.1740. 1,441,466 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 9,625,325 shares. The stock had previously closed at $5.37.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. UBS Group set a $9.00 target price on shares of Under Armour and gave the stock a "buy" rating in a report on Monday, August 10th. Truist Financial boosted their price target 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. BNP Paribas Exane dropped their price objective on shares of Under Armour from $7.00 to $5.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 13th. Wall Street Zen upgraded shares of Under Armour from a "sell" rating to a "hold" rating in a report on Sunday, May 24th. Finally, Citigroup reaffirmed a "sell" rating and set a $4.75 price objective (down from $6.20) on shares of Under Armour in a research report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, ten have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, Under Armour has a consensus rating of "Reduce" and a consensus target price of $5.94.

Under Armour Stock Down 3.6%

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 firm has a market cap of $2.22 billion, a price-to-earnings ratio of -4.49, a price-to-earnings-growth ratio of 1.96 and a beta of 1.67. The firm has a 50-day moving average price of $6.33 and a two-hundred day moving average price of $6.30.

Under Armour (NYSE:UAA - Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported $0.05 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. The firm had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.11 billion. Under Armour had a positive return on equity of 4.04% and a negative net margin of 9.99%.The firm's quarterly revenue was down 3.2% compared to the same quarter last year. During the same period in the prior 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. On average, sell-side analysts forecast that Under Armour, Inc. will post 0.11 earnings per share for the current year.

Insider Activity

In related news, CFO Reza Taleghani bought 18,656 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The shares were purchased at an average cost of $5.37 per share, with a total value of $100,182.72. Following the transaction, the chief financial officer directly owned 87,621 shares of the company's stock, valued at approximately $470,524.77. This represents a 27.05% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 15.70% of the company's stock.

Hedge Funds Weigh In On Under Armour

Several large investors have recently bought and sold shares of UAA. Fairfax Financial Holdings Ltd. Can lifted its holdings in shares of Under Armour by 564.8% in the 4th quarter. Fairfax Financial Holdings Ltd. Can now owns 41,958,923 shares of the company's stock valued at $208,536,000 after purchasing an additional 35,647,123 shares during the last quarter. Vanguard Group Inc. increased its position in Under Armour by 11.3% during the fourth quarter. Vanguard Group Inc. now owns 17,168,819 shares of the company's stock worth $85,329,000 after buying an additional 1,747,120 shares during the period. Dimensional Fund Advisors LP lifted its stake in Under Armour by 17.7% in the first quarter. Dimensional Fund Advisors LP now owns 8,531,173 shares of the company's stock valued at $50,416,000 after buying an additional 1,285,384 shares during the last quarter. Marshall Wace LLP boosted its holdings in shares of Under Armour by 113.8% in the third quarter. Marshall Wace LLP now owns 6,296,543 shares of the company's stock valued at $31,420,000 after acquiring an additional 3,351,976 shares during the period. Finally, State Street Corp grew its position in shares of Under Armour by 8.7% during the fourth quarter. State Street Corp now owns 6,118,339 shares of the company's stock worth $30,408,000 after acquiring an additional 489,044 shares during the last quarter. Institutional investors and hedge funds own 34.58% of the company's stock.

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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