Under Armour, Inc. (NYSE:UAA) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts are cautious on Under Armour, with the stock receiving a consensus rating of “Reduce” from 20 analysts. The average 1-year target price is about $5.91, and most ratings are holds or sells.
• Recent analyst actions were mixed but mostly neutral-to-bearish, including Barclays’ $5 target with an “equal weight” rating and Goldman Sachs’ “neutral” call. Zacks downgraded the stock, while Wall Street Zen upgraded it from sell to hold.
• Under Armour reported flat quarterly results, meeting EPS and revenue expectations, though revenue fell 0.8% year over year and net margin remained negative. The stock was trading near $6.75, up from its 52-week low but below its high for the year.

Under Armour, Inc. (NYSE:UAA - Get Free Report) has received an average recommendation of "Reduce" from the twenty analysts that are presently covering the company, Marketbeat reports. Four analysts have rated the stock with a sell recommendation, fourteen have issued a hold recommendation, one has issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among analysts that have covered the stock in the last year is $5.9107.

Several brokerages recently weighed in on UAA. Barclays set a $5.00 target price on Under Armour and gave the stock an "equal weight" rating in a research note on Wednesday, May 13th. Zacks Research downgraded Under Armour from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. Wall Street Zen upgraded shares of Under Armour from a "sell" rating to a "hold" rating in a report on Sunday, May 24th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Under Armour in a research note on Friday, April 24th. Finally, The Goldman Sachs Group reissued a "neutral" rating and set a $6.00 target price on shares of Under Armour in a research report on Wednesday, May 13th.

Insider Buying and Selling at Under Armour

In other news, major shareholder V Prem Et Al Watsa bought 739,521 shares of the business's stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average cost of $4.97 per share, with a total value of $3,675,419.37. Following the transaction, the insider directly owned 44,179,116 shares in the company, valued at approximately $219,570,206.52. The trade was a 1.70% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders have acquired 1,178,344 shares of company stock worth $5,865,147 over the last 90 days. 15.60% of the stock is owned by insiders.

Institutional Trading of Under Armour

Several large investors have recently added to or reduced their stakes in the company. Blair William & Co. IL increased its position in shares of Under Armour by 40.0% during the 4th quarter. Blair William & Co. IL now owns 5,164 shares of the company's stock worth $26,000 after purchasing an additional 1,476 shares during the last quarter. Vident Advisory LLC boosted its stake in Under Armour by 13.6% during the fourth quarter. Vident Advisory LLC now owns 12,651 shares of the company's stock worth $63,000 after buying an additional 1,512 shares during the period. NewEdge Advisors LLC increased its position in shares of Under Armour by 9.4% during the first quarter. NewEdge Advisors LLC now owns 23,908 shares of the company's stock valued at $141,000 after acquiring an additional 2,061 shares during the last quarter. HUB Investment Partners LLC increased its position in shares of Under Armour by 12.9% during the second quarter. HUB Investment Partners LLC now owns 21,810 shares of the company's stock valued at $149,000 after acquiring an additional 2,489 shares during the last quarter. Finally, M&T Bank Corp raised its stake in shares of Under Armour by 23.2% in the 2nd quarter. M&T Bank Corp now owns 13,296 shares of the company's stock valued at $91,000 after acquiring an additional 2,504 shares during the period. Hedge funds and other institutional investors own 34.58% of the company's stock.

Under Armour Stock Down 0.8%

Shares of NYSE:UAA traded down $0.06 during trading on Tuesday, reaching $6.75. The stock had a trading volume of 494,300 shares, compared to its average volume of 9,962,457. The firm's 50-day simple moving average is $5.88 and its 200 day simple moving average is $6.08. The company has a current ratio of 1.62, a quick ratio of 1.08 and a debt-to-equity ratio of 0.42. Under Armour has a one year low of $4.13 and a one year high of $8.15. The company has a market capitalization of $2.88 billion, a P/E ratio of -5.84, a PEG ratio of 2.10 and a beta of 1.67.

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

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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