Under Armour (NYSE:UA) Trading Down 6.5% - Time to Sell?

Key Points

• Under Armour shares fell 6.5% to about $5.55 in midday trading, with volume approximately 82% below the average.
• Analyst sentiment remains negative: the stock has an average rating of “Sell” and an average price target of $5.50, with two analysts rating it Sell and one rating it Hold.
• The company modestly beat quarterly EPS estimates ($0.05 versus $0.02) but reported revenue slightly below expectations and continues to post a negative net margin; meanwhile, insiders have purchased more than 1.17 million shares over the past 90 days.

Under Armour, Inc. (NYSE:UA - Get Free Report)'s share price dropped 6.5% during mid-day trading on Monday . The stock traded as low as $5.58 and last traded at $5.5450. Approximately 674,471 shares changed hands during trading, a decline of 82% from the average daily volume of 3,764,474 shares. The stock had previously closed at $5.93.

Wall Street Analysts Forecast Growth

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

Under Armour Stock Performance

The stock has a market cap of $2.35 billion, a price-to-earnings ratio of -4.80 and a beta of 1.59. The company has a quick ratio of 0.96, a current ratio of 1.81 and a debt-to-equity ratio of 0.41. The company has a 50 day simple moving average of $6.24 and a 200 day simple moving average of $6.20.

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 (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. The business had revenue of $1.10 billion during 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.

Insider Activity at Under Armour

In related news, major shareholder V Prem Et Al Watsa acquired 739,521 shares of the stock in a transaction dated Wednesday, May 13th. The stock was bought at an average cost of $4.97 per share, for a total transaction of $3,675,419.37. Following the completion of the transaction, the insider directly owned 44,179,116 shares of the company's stock, valued at $219,570,206.52. The trade was a 1.70% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last 90 days, insiders bought 1,178,344 shares of company stock valued at $5,865,147. Insiders own 15.60% of the company's stock.

Institutional Investors Weigh In On Under Armour

Large investors have recently modified their holdings of the company. International Assets Investment Management LLC lifted its stake in shares of Under Armour by 80.0% in the 1st quarter. International Assets Investment Management LLC now owns 4,500 shares of the company's stock valued at $25,000 after purchasing an additional 2,000 shares during the period. Western Wealth Management LLC purchased a new position in shares of Under Armour in the 1st quarter worth approximately $26,000. Summit Financial Strategies Inc. bought a new position in Under Armour in the 1st quarter valued at $58,000. Symmetry Peak Management LLC bought a new position in Under Armour during the fourth quarter valued at about $48,000. Finally, Cerity Partners LLC bought a new position in shares of Under Armour during the 2nd quarter valued at approximately $65,000. 36.35% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source