Under Armour (NYSE:UA) Trading Up 6.7% - Here's What Happened

Key Points

• Under Armour shares rose 6.7% on Wednesday, reaching an intraday high of $6.90 and trading above the prior close of $6.47. Volume was well below average, with about 865,648 shares traded versus a typical 3.9 million.
• Despite the rally, Wall Street sentiment remains bearish: analysts have a consensus rating of “Sell” and an average price target of $5.50, with one Hold and two Sell ratings highlighted in the article.
• The company recently missed earnings estimates, reporting EPS of -$0.03 versus expectations of -$0.02, while revenue matched forecasts at $1.17 billion. The article also notes significant insider buying, including a major shareholder purchasing 739,521 shares.

Under Armour, Inc. (NYSE:UA - Get Free Report) shares shot up 6.7% during trading on Wednesday . The stock traded as high as $6.90 and last traded at $6.9050. 865,648 shares were traded during trading, a decline of 78% from the average session volume of 3,896,422 shares. The stock had previously closed at $6.47.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on UA shares. Robert W. Baird set a $5.50 price target on Under Armour in a report on Wednesday, May 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Under Armour in a research report on Friday, May 8th. One research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Sell" and an average target price of $5.50.

Under Armour Trading Up 6.1%

The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.08 and a current ratio of 1.62. The company's 50-day moving average price is $5.77 and its 200-day moving average price is $6.00. The firm has a market capitalization of $2.93 billion, a PE ratio of -5.90 and a beta of 1.59.

Under Armour (NYSE:UA - Get Free Report) last posted its quarterly earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.01). The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.17 billion. Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. 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.

Insider Activity at Under Armour

In other Under Armour news, major shareholder V Prem Et Al Watsa bought 739,521 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $4.97 per share, with a total value of $3,675,419.37. Following the transaction, the insider owned 44,179,116 shares of the company's stock, valued at approximately $219,570,206.52. The trade was a 1.70% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. In the last quarter, insiders bought 1,178,344 shares of company stock valued at $5,865,147. Corporate insiders own 15.60% of the company's stock.

Hedge Funds Weigh In On Under Armour

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Under Armour by 5.6% in the 4th quarter. Vanguard Group Inc. now owns 15,729,586 shares of the company's stock valued at $75,502,000 after acquiring an additional 831,186 shares during the period. GM Advisory Group LLC boosted its stake in Under Armour by 326.2% during the 3rd quarter. GM Advisory Group LLC now owns 130,660 shares of the company's stock worth $631,000 after purchasing an additional 100,000 shares during the period. Bastion Asset Management Inc. grew its position in 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 during the last quarter. Fairfax Financial Holdings Ltd. Can purchased a new position in Under Armour during the 4th quarter worth $45,395,000. Finally, Oregon Public Employees Retirement Fund increased its stake in Under Armour by 10.9% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 27,100 shares of the company's stock valued at $130,000 after purchasing an additional 2,667 shares during the period. 36.35% of the stock is 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.

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