Stock Traders Purchase High Volume of Put Options on Under Armour (NYSE:UAA)

Key Points

• Unusual options activity: Traders bought 10,311 put options on Under Armour, more than double the usual volume of 4,855, which may signal bearish sentiment.
• Insider buying continued: Major shareholder V Prem Et Al Watsa bought 739,521 shares at $4.97 each, and insiders have purchased 1,178,344 shares over the past three months.
• Mixed fundamentals and analyst outlook: Under Armour recently matched quarterly EPS and revenue estimates, but analysts remain cautious overall, with a consensus rating of “Reduce” and an average price target of $5.91.

Under Armour, Inc. (NYSE:UAA - Get Free Report) was the target of some unusual options trading activity on Monday. Stock investors purchased 10,311 put options on the company. This represents an increase of approximately 112% compared to the typical volume of 4,855 put options.

Insider Transactions at Under Armour

In other news, major shareholder V Prem Et Al Watsa purchased 739,521 shares of the stock in a transaction on Wednesday, May 13th. The stock was purchased at an average price of $4.97 per share, for a total transaction of $3,675,419.37. Following the acquisition, the insider owned 44,179,116 shares in the company, valued at $219,570,206.52. This trade represents a 1.70% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In the last three months, insiders have purchased 1,178,344 shares of company stock valued at $5,865,147. 15.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Fairfax Financial Holdings Ltd. Can boosted its stake in shares of Under Armour by 564.8% during the fourth 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 period. Marshall Wace LLP boosted its stake in shares of Under Armour by 113.8% during the third quarter. Marshall Wace LLP now owns 6,296,543 shares of the company's stock valued at $31,420,000 after purchasing an additional 3,351,976 shares during the period. Whitebox Advisors LLC purchased a new stake in shares of Under Armour during the third quarter valued at approximately $11,237,000. Group One Trading LLC boosted its stake in shares of Under Armour by 378.3% during the first quarter. Group One Trading LLC now owns 1,568,227 shares of the company's stock valued at $9,268,000 after purchasing an additional 2,131,642 shares during the period. Finally, Deltroit Asset Management UK LLP purchased a new stake in shares of Under Armour during the fourth quarter valued at approximately $9,909,000. Hedge funds and other institutional investors own 34.58% of the company's stock.

Analyst Ratings Changes

UAA has been the subject of several recent analyst reports. UBS Group reissued a "buy" rating and issued a $10.00 price target (down from $11.00) on shares of Under Armour in a research report on Thursday, May 14th. Barclays set a $5.00 price target on shares of Under Armour and gave the company an "equal weight" rating in a research report on Wednesday, May 13th. Stifel Nicolaus set a $6.00 price target on shares of Under Armour and gave the company a "hold" rating in a research report on Tuesday, May 12th. Zacks Research downgraded shares of Under Armour from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. Finally, Truist Financial cut their price objective on shares of Under Armour from $8.00 to $5.00 and set a "hold" rating on the stock in a report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, fourteen have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Under Armour presently has an average rating of "Reduce" and a consensus price target of $5.91.

Under Armour Stock Performance

Under Armour stock traded down $0.25 during midday trading on Monday, reaching $5.63. The stock had a trading volume of 2,483,001 shares, compared to its average volume of 10,278,623. Under Armour has a 12 month low of $4.13 and a 12 month high of $8.15. The firm's 50-day moving average price is $5.93 and its 200 day moving average price is $5.80. The firm has a market capitalization of $2.40 billion, a PE ratio of -4.85, a P/E/G ratio of 1.86 and a beta of 1.69. The company has a quick ratio of 1.08, a current ratio of 1.62 and a debt-to-equity ratio of 0.42.

Under Armour (NYSE:UAA - Get Free Report) last announced its quarterly earnings data on Tuesday, May 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.03). The business had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.17 billion. Under Armour had a positive return on equity of 3.01% and a negative net margin of 9.98%.The firm's quarterly revenue was down .8% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.08) EPS. 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, research analysts predict that Under Armour will post 0.12 earnings per share for the current fiscal 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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