Under Armour (NYSE:UAA) Hits New 52-Week Low - Time to Sell?

Key Points

• Under Armour's shares reached a 52-week low of $4.72, causing concerns about the stock's performance, currently trading at about $4.78.
• Analysts have recently downgraded Under Armour's stock, with target prices cut by firms such as JPMorgan and Bank of America, reflecting a bearish outlook.
• Insider buying has occurred, with directors acquiring significant shares at prices around $4.88, indicating some confidence in the company despite its current struggles.

Shares of Under Armour, Inc. (NYSE:UAA - Get Free Report) reached a new 52-week low during trading on Friday . The company traded as low as $4.72 and last traded at $4.78, with a volume of 3575846 shares traded. The stock had previously closed at $4.81.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on UAA shares. Robert W. Baird cut their target price on shares of Under Armour from $7.00 to $6.00 and set a "neutral" rating for the company in a research note on Monday, August 11th. Weiss Ratings reissued a "sell (d+)" rating on shares of Under Armour in a research note on Wednesday. Cfra Research raised shares of Under Armour from a "moderate sell" rating to a "hold" rating in a research note on Tuesday, August 12th. JPMorgan Chase & Co. lowered their price target on shares of Under Armour from $6.00 to $5.00 and set an "underweight" rating on the stock in a research report on Friday, August 8th. Finally, Bank of America lowered their price target on shares of Under Armour from $8.00 to $6.50 and set a "neutral" rating on the stock in a research report on Monday, August 11th. Three research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, Under Armour has a consensus rating of "Reduce" and a consensus price target of $6.70.

Under Armour Stock Down 0.3%

The company has a current ratio of 1.53, a quick ratio of 0.93 and a debt-to-equity ratio of 0.21. The company has a market capitalization of $2.06 billion, a price-to-earnings ratio of 21.84, a price-to-earnings-growth ratio of 4.19 and a beta of 1.76. The firm's fifty day simple moving average is $5.17 and its two-hundred day simple moving average is $5.98.

Under Armour (NYSE:UAA - Get Free Report) last posted its earnings results on Friday, August 8th. The company reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.01). The firm had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.13 billion. Under Armour had a net margin of 1.99% and a return on equity of 7.24%. The business's revenue for the quarter was down 4.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.01 earnings per share. Under Armour has set its Q2 2026 guidance at 0.010-0.020 EPS. Sell-side analysts anticipate that Under Armour, Inc. will post 0.3 EPS for the current year.

Insider Buying and Selling

In related news, Director Robert John Sweeney purchased 100,000 shares of Under Armour stock in a transaction dated Thursday, August 21st. The shares were acquired at an average cost of $4.88 per share, with a total value of $488,000.00. Following the purchase, the director owned 133,696 shares of the company's stock, valued at approximately $652,436.48. The trade was a 296.77% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Dawn N. Fitzpatrick purchased 100,000 shares of Under Armour stock in a transaction dated Wednesday, August 13th. The stock was bought at an average cost of $4.93 per share, for a total transaction of $493,000.00. Following the completion of the purchase, the director directly owned 133,696 shares in the company, valued at approximately $659,121.28. This trade represents a 296.77% increase in their position. The disclosure for this purchase can be found here. Insiders bought a total of 202,045 shares of company stock worth $991,000 over the last three months. Insiders own 15.60% of the company's stock.

Institutional Investors Weigh In On Under Armour

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Wedmont Private Capital purchased a new stake in shares of Under Armour in the 3rd quarter valued at approximately $53,000. M.E. Allison & CO. Inc. increased its stake in Under Armour by 95.2% during the 3rd quarter. M.E. Allison & CO. Inc. now owns 36,860 shares of the company's stock worth $184,000 after buying an additional 17,980 shares during the period. Texas Permanent School Fund Corp increased its stake in Under Armour by 284.0% during the 2nd quarter. Texas Permanent School Fund Corp now owns 351,173 shares of the company's stock worth $2,399,000 after buying an additional 259,727 shares during the period. Osaic Holdings Inc. increased its stake in Under Armour by 130.1% during the 2nd quarter. Osaic Holdings Inc. now owns 65,784 shares of the company's stock worth $449,000 after buying an additional 37,190 shares during the period. Finally, Orion Porfolio Solutions LLC increased its stake in Under Armour by 90.1% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 205,046 shares of the company's stock worth $1,400,000 after buying an additional 97,182 shares during the period. 34.58% of the stock is owned by hedge funds and other institutional investors.

Under Armour Company Profile

Under Armour, Inc, together with its subsidiaries, engages developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company provides its apparel in compression, fitted, and loose fit types. It also offers footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications.

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