Under Armour (NYSE:UA) Trading Down 6.7% - Should You Sell?

Key Points

• Shares of Under Armour were down 6.7% to about $6.08 on Wednesday, trading on roughly 60% below-average volume; the company has a market cap of $2.6 billion and a negative P/E of -5.00.
• Analysts show a consensus "Sell" rating (two Sell, one Hold), including a recent downgrade by Citigroup to "strong sell."
• Major shareholder V. Prem Watsa bought 1,112,119 shares at about $6.21, raising his stake to 43,000,872 shares; insiders now own roughly 15.6% of the stock.

Under Armour, Inc. (NYSE:UA - Get Free Report) shares traded down 6.7% during trading on Wednesday . The stock traded as low as $6.14 and last traded at $6.0750. 1,737,939 shares traded hands during trading, a decline of 60% from the average session volume of 4,367,802 shares. The stock had previously closed at $6.51.

Analyst Ratings Changes

Several brokerages have recently issued reports on UA. Weiss Ratings reissued a "sell (e+)" rating on shares of Under Armour in a report on Monday, December 29th. Citigroup downgraded shares of Under Armour from a "hold" rating to a "strong sell" rating in a report on Tuesday, February 10th. Finally, Zacks Research raised shares of Under Armour to a "hold" rating in a report on Wednesday, March 11th. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Sell".

Under Armour Price Performance

The stock has a market capitalization of $2.60 billion, a PE ratio of -5.00 and a beta of 1.73. The company has a quick ratio of 0.92, a current ratio of 1.43 and a debt-to-equity ratio of 0.27. The stock's 50 day moving average price is $6.41 and its 200-day moving average price is $5.43.

Under Armour (NYSE:UA - Get Free Report) last posted its quarterly earnings results on Friday, February 6th. The company reported $0.09 EPS for the quarter, topping the consensus estimate of ($0.02) by $0.11. The company had revenue of $1.33 billion for the quarter, compared to the consensus estimate of $1.16 billion. Under Armour had a negative net margin of 10.44% and a positive return on equity of 1.48%. Under Armour has set its FY 2026 guidance at 0.10-0.110 EPS. As a group, equities analysts forecast that Under Armour, Inc. will post 0.12 EPS for the current year.

Insider Activity

In other news, major shareholder V Prem Et Al Watsa bought 1,112,119 shares of the firm's stock in a transaction on Wednesday, January 28th. The stock was acquired at an average cost of $6.21 per share, with a total value of $6,906,258.99. Following the transaction, the insider directly owned 43,000,872 shares in the company, valued at approximately $267,035,415.12. This trade represents a 2.65% increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders purchased a total of 4,976,455 shares of company stock valued at $30,869,288 in the last ninety days. 15.60% of the stock is currently owned by insiders.

Institutional Trading of Under Armour

Several institutional investors and hedge funds have recently made changes to their positions in the company. BDT Capital Partners LLC boosted its stake in shares of Under Armour by 4.1% during the third quarter. BDT Capital Partners LLC now owns 65,050,733 shares of the company's stock valued at $314,195,000 after purchasing an additional 2,586,854 shares in the last quarter. Bastion Asset Management Inc. purchased a new position in Under Armour during the third quarter valued at approximately $1,945,000. Quinn Opportunity Partners LLC raised its stake in Under Armour by 1,100.0% in the third quarter. Quinn Opportunity Partners LLC now owns 720,000 shares of the company's stock worth $3,478,000 after buying an additional 660,000 shares in the last quarter. SG Americas Securities LLC bought a new position in Under Armour in the third quarter worth approximately $1,532,000. Finally, Intech Investment Management LLC purchased a new stake in Under Armour during the third quarter worth $740,000. 36.35% of the stock is currently 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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