Under Armour (NYSE:UA) Shares Gap Down - Here's What Happened

Key Points

• Under Armour shares opened lower, falling from a previous close of $6.27 to $6.00 before last trading around $6.0950, with more than 2.3 million shares exchanged.
• Analyst sentiment remains weak: Under Armour has an average rating of “Sell” and a consensus price target of $5.50, below the prevailing share price.
• Despite reporting quarterly earnings of $0.05 per share versus $0.02 expected, the company’s revenue came in slightly below estimates. Meanwhile, insiders have purchased more than 1.17 million shares over the past three months.

Under Armour, Inc. (NYSE:UA - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $6.27, but opened at $6.00. Under Armour shares last traded at $6.0950, with a volume of 2,347,033 shares trading hands.

Analyst Upgrades and Downgrades

UA has been the subject of a number of research reports. Robert W. Baird set a $5.50 price objective on Under Armour in a report on Wednesday, May 13th. Weiss Ratings restated a "sell (d-)" rating on shares of Under Armour in a research report on Wednesday. One analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Sell" and a consensus price target of $5.50.

Under Armour Stock Down 2.6%

The company has a current ratio of 1.62, a quick ratio of 1.08 and a debt-to-equity ratio of 0.42. The stock has a 50 day simple moving average of $6.24 and a 200 day simple moving average of $6.20. The firm has a market capitalization of $2.60 billion, a PE ratio of -5.25 and a beta of 1.59.

Under Armour (NYSE:UA - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported $0.05 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $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 $1.10 billion during the quarter, compared to analyst estimates of $1.11 billion. Under Armour has set its Q2 2027 guidance at -0.030--0.010 EPS and its FY 2027 guidance at 0.080-0.120 EPS.

Insider Buying and Selling

In other news, major shareholder V Prem Et Al Watsa purchased 739,521 shares of the company's stock in a transaction on Wednesday, May 13th. The stock was acquired at an average price 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 of the company's stock, valued at approximately $219,570,206.52. This represents a 1.70% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In the last three months, insiders have acquired 1,178,344 shares of company stock worth $5,865,147. Corporate insiders own 15.60% of the company's stock.

Hedge Funds Weigh In On Under Armour

Several hedge funds and other institutional investors have recently modified their holdings of the company. International Assets Investment Management LLC grew its stake in shares of Under Armour by 80.0% in the first quarter. International Assets Investment Management LLC now owns 4,500 shares of the company's stock worth $25,000 after purchasing an additional 2,000 shares during the last quarter. Western Wealth Management LLC bought a new position in Under Armour during the 1st quarter valued at approximately $26,000. Symmetry Peak Management LLC bought a new position in Under Armour during the 4th quarter valued at approximately $48,000. Quarry LP purchased a new stake in Under Armour in the 3rd quarter worth approximately $53,000. Finally, Mercer Global Advisors Inc. ADV purchased a new stake in Under Armour in the 4th quarter worth approximately $54,000. 36.35% of the stock is owned by institutional investors.

About Under Armour

Under Armour, Inc is a global designer, marketer and distributor of branded performance apparel, footwear and accessories. The company's product portfolio spans a wide range of athletic categories, including running, training, basketball, outdoor and golf, with specialized lines for men, women and youth. Under Armour emphasizes innovative fabrics and technologies designed to enhance athletic performance, such as moisture-wicking HeatGear®, cold-weather ColdGear® and UV-protective UA Tech™ materials.

The company was founded in 1996 by former University of Maryland football captain Kevin Plank, who sought to create a superior moisture-wicking T-shirt to keep athletes cool and dry.

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