Under Armour (NYSE:UA) Stock Price Passes Below Fifty Day Moving Average - What's Next?

Key Points

• Under Armour shares fell below their 50-day moving average, trading as low as $4.98 versus the $6.20 average before closing near $5.14.
• Analysts maintain a bearish outlook: the stock has a consensus “Sell” rating from MarketBeat, with an average price target of $5.50.
• The company beat quarterly EPS expectations, reporting $0.05 versus $0.02 forecast, but revenue slightly missed estimates and Under Armour continued to post a negative net margin. CFO Reza Taleghani also increased his stake by purchasing 18,656 shares.

Shares of Under Armour, Inc. (NYSE:UA - Get Free Report) passed below its 50-day moving average during trading on Thursday . The stock has a 50-day moving average of $6.20 and traded as low as $4.98. Under Armour shares last traded at $5.14, with a volume of 2,054,732 shares changing hands.

Analyst Ratings Changes

A number of equities analysts recently commented on UA shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Under Armour in a report on Wednesday, August 5th. Robert W. Baird set a $5.50 price objective on Under Armour in a research note on Wednesday, May 13th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Under Armour currently has a consensus rating of "Sell" and an average target price of $5.50.

Under Armour Stock Performance

The stock has a market capitalization of $2.21 billion, a price-to-earnings ratio of -4.47 and a beta of 1.59. The company's fifty day simple moving average is $6.20 and its 200 day simple moving average is $6.15. The company has a quick ratio of 0.96, a current ratio of 1.81 and a debt-to-equity ratio of 0.41.

Under Armour (NYSE:UA - Get Free Report) last issued its quarterly earnings data on Friday, August 7th. The company reported $0.05 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.03. The company had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.11 billion. Under Armour had a negative net margin of 9.99% and a positive return on equity of 4.04%. 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.

Insiders Place Their Bets

In related news, CFO Reza Taleghani acquired 18,656 shares of the business's stock in a transaction on Tuesday, August 11th. The stock was purchased at an average cost of $5.37 per share, for a total transaction of $100,182.72. Following the completion of the transaction, the chief financial officer directly owned 87,621 shares of the company's stock, valued at approximately $470,524.77. The trade was a 27.05% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 15.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Under Armour

Institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in Under Armour by 5.6% during the fourth quarter. Vanguard Group Inc. now owns 15,729,586 shares of the company's stock worth $75,502,000 after acquiring an additional 831,186 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Under Armour by 6.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 11,518,415 shares of the company's stock valued at $66,688,000 after purchasing an additional 716,815 shares during the period. Quantinno Capital Management LP grew its position in shares of Under Armour by 211.6% during the 1st quarter. Quantinno Capital Management LP now owns 433,282 shares of the company's stock worth $2,509,000 after purchasing an additional 294,227 shares in the last quarter. Bastion Asset Management Inc. grew its position in shares of Under Armour by 86.9% during the 4th quarter. Bastion Asset Management Inc. now owns 753,518 shares of the company's stock worth $3,637,000 after purchasing an additional 350,413 shares in the last quarter. Finally, Fairfax Financial Holdings Ltd. Can bought a new position in shares of Under Armour during the fourth quarter worth approximately $45,395,000. Institutional investors and hedge funds own 36.35% of the company's stock.

Under Armour Company Profile

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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