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

Key Points

• Put-option activity surged: Investors purchased 18,771 Under Armour put options, roughly 476% above the average volume, signaling heightened bearish or hedging interest.
• Insider buying continued: Major shareholder V. Prem Watsa acquired 739,521 shares for approximately $3.68 million, while insiders purchased more than 1.17 million shares over the past three months.
• Analyst sentiment remains cautious: Under Armour shares fell 2.6% to $6.58, and the consensus rating is “Reduce” with an average price target of $5.91, despite the company meeting quarterly earnings and revenue expectations.

Under Armour, Inc. (NYSE:UAA - Get Free Report) was the target of some unusual options trading activity on Thursday. Stock investors bought 18,771 put options on the company. This is an increase of approximately 476% compared to the average volume of 3,260 put options.

Insider Buying and Selling at Under Armour

In other Under Armour news, major shareholder V Prem Et Al Watsa bought 739,521 shares of the stock in a transaction on Wednesday, May 13th. The stock was acquired at an average cost of $4.97 per share, for a total transaction of $3,675,419.37. Following the completion of 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 position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Over the last three months, insiders bought 1,178,344 shares of company stock valued at $5,865,147. Company insiders own 15.70% of the company's stock.

Institutional Investors Weigh In On Under Armour

A number of hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada raised its holdings in shares of Under Armour by 5.3% during the first quarter. Royal Bank of Canada now owns 1,158,649 shares of the company's stock valued at $7,242,000 after buying an additional 58,701 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Under Armour by 33.1% in the first quarter. Goldman Sachs Group Inc. now owns 328,746 shares of the company's stock valued at $2,055,000 after buying an additional 81,732 shares during the period. United Services Automobile Association acquired a new stake in Under Armour in the 1st quarter valued at approximately $83,000. Creative Planning raised its stake in Under Armour by 70.8% in the second quarter. Creative Planning now owns 30,457 shares of the company's stock valued at $208,000 after purchasing an additional 12,620 shares in the last quarter. Finally, Prudential Financial Inc. raised its holdings in Under Armour by 27.0% in the 2nd quarter. Prudential Financial Inc. now owns 22,191 shares of the company's stock valued at $152,000 after buying an additional 4,718 shares during the last quarter. Institutional investors and hedge funds own 34.58% of the company's stock.

Under Armour Trading Down 2.6%

Under Armour stock traded down $0.17 during midday trading on Thursday, reaching $6.58. The stock had a trading volume of 2,334,173 shares, compared to its average volume of 9,548,393. The stock has a market capitalization of $2.81 billion, a PE ratio of -5.68, a price-to-earnings-growth ratio of 2.26 and a beta of 1.67. The stock's 50-day simple moving average is $6.40 and its 200 day simple moving average is $6.36. Under Armour has a twelve month low of $4.13 and a twelve month high of $8.15. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.08 and a current ratio of 1.62.

Under Armour (NYSE:UAA - Get Free Report) last released its earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share for the quarter, meeting the consensus estimate of ($0.03). Under Armour had a positive return on equity of 3.01% and a negative net margin of 9.98%.The firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.17 billion. During the same quarter in the prior year, the firm posted ($0.08) earnings per share. The company's quarterly revenue was down .8% on a year-over-year basis. 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. Analysts expect that Under Armour will post 0.11 EPS for the current year.

Analysts Set New Price Targets

Several brokerages have commented on UAA. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Under Armour in a research report on Tuesday, July 21st. Truist Financial reduced their price objective on Under Armour from $8.00 to $5.00 and set a "hold" rating on the stock in a research report on Wednesday, May 13th. UBS Group reaffirmed a "buy" rating and issued a $10.00 price target (down from $11.00) on shares of Under Armour in a report on Thursday, May 14th. Citigroup restated a "sell" rating and issued a $4.75 target price (down from $6.20) on shares of Under Armour in a report on Wednesday, May 13th. Finally, The Goldman Sachs Group restated a "neutral" rating and set a $6.00 price objective on shares of Under Armour in a research note on Wednesday, May 13th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, fourteen have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, Under Armour presently has a consensus rating of "Reduce" and an average target price of $5.91.

About Under Armour

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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