Under Armour (NYSE:UAA) Rating Lowered to Hold at Zacks Research

Key Points

• Zacks Research downgraded Under Armour from strong-buy to hold, reflecting a more cautious view on the stock.
• Other analysts also turned more conservative, with Truist, Barclays, and Citigroup setting low $5 price targets and the consensus rating now sitting at Reduce with a $5.98 target.
• Under Armour’s latest quarter matched expectations on EPS and revenue, but sales still fell 0.8% year over year and management warned of a drop in annual revenue, showing the turnaround remains incomplete.

Under Armour (NYSE:UAA - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Tuesday,Zacks.com reports.

A number of other brokerages have also recently issued reports on UAA. Truist Financial dropped their target price on shares of Under Armour from $8.00 to $5.00 and set a "hold" rating for the company in a report on Wednesday. Wall Street Zen raised shares of Under Armour from a "sell" rating to a "hold" rating in a report on Saturday, January 17th. Barclays set a $5.00 target price on shares of Under Armour and gave the company an "equal weight" rating in a report on Wednesday. Citigroup reaffirmed a "sell" rating and issued a $4.75 target price (down from $6.20) on shares of Under Armour in a report on Wednesday. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Under Armour in a report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, fourteen have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus price target of $5.98.

Under Armour Trading Up 1.7%

NYSE UAA opened at $5.12 on Tuesday. The stock has a market capitalization of $2.18 billion, a P/E ratio of -4.41, a P/E/G ratio of 2.00 and a beta of 1.73. Under Armour has a 52-week low of $4.13 and a 52-week high of $8.15. The firm has a 50-day moving average price of $6.20 and a 200 day moving average price of $5.73. The company has a quick ratio of 0.92, a current ratio of 1.62 and a debt-to-equity ratio of 0.42.

Under Armour (NYSE:UAA - Get Free Report) last posted its quarterly earnings results on Tuesday, May 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.03). The firm had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.17 billion. Under Armour had a negative net margin of 9.98% and a positive return on equity of 3.01%. The firm's revenue for the quarter was down .8% on a year-over-year basis. During the same period in the prior year, the company posted ($0.08) earnings per share. 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. Equities research analysts expect that Under Armour will post 0.22 EPS for the current year.

Institutional Trading of Under Armour

Several large investors have recently modified their holdings of UAA. Fairfax Financial Holdings Ltd. Can grew its position in shares of Under Armour by 564.8% in the fourth quarter. Fairfax Financial Holdings Ltd. Can now owns 41,958,923 shares of the company's stock valued at $208,536,000 after purchasing an additional 35,647,123 shares during the last quarter. Marshall Wace LLP grew its position in shares of Under Armour by 113.8% in the third quarter. Marshall Wace LLP now owns 6,296,543 shares of the company's stock valued at $31,420,000 after purchasing an additional 3,351,976 shares during the last quarter. Whitebox Advisors LLC acquired a new stake in shares of Under Armour in the third quarter valued at approximately $11,237,000. Group One Trading LLC grew its position in shares of Under Armour by 378.3% in the first quarter. Group One Trading LLC now owns 1,568,227 shares of the company's stock valued at $9,268,000 after purchasing an additional 2,131,642 shares during the last quarter. Finally, Deltroit Asset Management UK LLP acquired a new stake in shares of Under Armour in the fourth quarter valued at approximately $9,909,000. 34.58% of the stock is currently owned by institutional investors and hedge funds.

More Under Armour News

Here are the key news stories impacting Under Armour this week:

• Positive Sentiment: Q4 adjusted EPS of $(0.03) matched Wall Street expectations, and revenue of $1.17 billion also came in line with estimates, showing results were not worse than feared.
• Positive Sentiment: International markets and direct-to-consumer sales helped offset softer North American demand, suggesting some parts of the business are still growing.
• Positive Sentiment: Jim Cramer said he thinks the turnaround is underway, which may help sentiment around the stock. Jim Cramer on Under Armour: “I Think the Turnaround Is Here”
• Neutral Sentiment: Several analysts cut price targets after the results, including BNP Paribas Exane to $5.00, Truist to $5.00, and Telsey to $5.50, reflecting a more cautious view but not a major change in ratings.
• Neutral Sentiment: The company’s first-quarter fiscal 2027 EPS guidance of $0.00 to $0.02 was roughly in line with expectations, but it was too modest to offset concerns about sales momentum.
• Negative Sentiment: Investors reacted to declining revenue, with Q4 sales down 0.8% year over year and management forecasting a drop in annual revenue, signaling that the turnaround is still incomplete. Under Armour forecasts a drop in annual sales
• Negative Sentiment: Higher costs and weaker North American sales weighed on margins and earnings, prompting headlines that the stock fell sharply after the report. Under Armour's stock tumbles as surging costs eat away at earnings

Under Armour Company Profile

Under Armour, Inc NYSE: UAA is a global designer, marketer and distributor of performance athletic apparel, footwear and accessories. The company's product portfolio spans a range of categories including training and running shoes, performance apparel engineered to manage moisture and temperature, and a variety of accessories such as bags, socks and headwear. Under Armour positions its offerings to serve athletes at every level—from professionals to everyday fitness enthusiasts—by combining innovative fabrics, advanced footwear technology and functional design.

Founded in 1996 by Kevin Plank, a former University of Maryland football player, Under Armour initially gained recognition for its moisture-wicking T-shirts, which provided a lightweight alternative to traditional cotton.

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.