Under Armour (NYSE:UAA) Rating Lowered to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Under Armour from hold to sell, adding to a cautious analyst outlook on the stock.
• Despite the downgrade, Under Armour shares were up 1.0% and opened at $5.15. The stock remains well below its 52-week high of $8.15.
• The company recently matched quarterly expectations with EPS of -$0.03 and revenue of $1.17 billion, while insider buying by major shareholder V Prem Watsa highlighted some confidence at current prices.

Under Armour (NYSE:UAA - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

UAA has been the topic of several other reports. Argus raised Under Armour to a "hold" rating in a research note on Friday, January 16th. The Goldman Sachs Group reissued a "neutral" rating and issued a $6.00 target price on shares of Under Armour in a research note on Wednesday. UBS Group restated a "buy" rating and issued a $10.00 price objective (down from $11.00) on shares of Under Armour in a report on Thursday. Telsey Advisory Group lowered their price objective on shares of Under Armour from $6.00 to $5.50 and set a "market perform" rating for the company in a report on Wednesday. Finally, Robert W. Baird set a $8.00 price objective on shares of Under Armour in a report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, fourteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and an average price target of $5.91.

Under Armour Stock Up 1.0%

NYSE UAA opened at $5.15 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.62 and a quick ratio of 0.92. The stock has a market capitalization of $2.19 billion, a PE ratio of -4.44, a PEG ratio of 1.68 and a beta of 1.73. Under Armour has a 1 year low of $4.13 and a 1 year high of $8.15. The business's 50-day moving average is $6.12 and its 200 day moving average is $5.73.

Under Armour (NYSE:UAA - Get Free Report) last posted its 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 company had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.17 billion. Under Armour had a positive return on equity of 3.01% and a negative net margin of 9.98%.Under Armour's quarterly revenue was down .8% on a year-over-year basis. During the same period last year, the firm earned ($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. Sell-side analysts forecast that Under Armour will post 0.11 earnings per share for the current year.

Insider Buying and Selling

In related news, major shareholder V Prem Et Al Watsa acquired 739,521 shares of the stock in a transaction on Wednesday, May 13th. The stock was acquired at an average cost of $4.97 per share, for a total transaction of $3,675,419.37. Following the completion of the acquisition, the insider directly owned 44,179,116 shares of the company's stock, valued at approximately $219,570,206.52. This represents a 1.70% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have bought 1,178,344 shares of company stock valued at $5,865,147 in the last ninety days. Company insiders own 15.60% of the company's stock.

Institutional Trading of Under Armour

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Fairfax Financial Holdings Ltd. Can lifted its holdings in shares of Under Armour by 564.8% during 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. Vanguard Group Inc. lifted its holdings in shares of Under Armour by 11.3% during the fourth quarter. Vanguard Group Inc. now owns 17,168,819 shares of the company's stock valued at $85,329,000 after purchasing an additional 1,747,120 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Under Armour by 17.7% during the first quarter. Dimensional Fund Advisors LP now owns 8,531,173 shares of the company's stock valued at $50,416,000 after purchasing an additional 1,285,384 shares during the last quarter. Marshall Wace LLP lifted its holdings in shares of Under Armour by 113.8% during 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. Finally, State Street Corp lifted its holdings in shares of Under Armour by 8.7% during the fourth quarter. State Street Corp now owns 6,118,339 shares of the company's stock valued at $30,408,000 after purchasing an additional 489,044 shares during the last quarter. 34.58% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Under Armour

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

• Positive Sentiment: Major shareholder V Prem Et Al Watsa bought a large block of Under Armour shares in multiple SEC-disclosed transactions, including 739,521 shares at about $4.97 and 438,723 shares at $4.99. Heavy insider buying can be a bullish signal that a key shareholder sees value at current levels. Article Title
• Neutral Sentiment: Truist Financial kept a Hold rating on Under Armour, and Telsey Advisory Group assigned a $5.50 price target with a Market Perform view, suggesting analysts see limited near-term upside but not a collapse. Article Title
• Neutral Sentiment: Truist also set a new $5.00 price target, while BNP Paribas Exane cut its target to $5.00. These updates reinforce the view that Wall Street expects the stock to remain range-bound unless fundamentals improve. Article Title
• Negative Sentiment: Zacks Research downgraded Under Armour from Strong Buy to Hold, adding to the negative analyst sentiment after recent commentary pointed to slowing sales and tougher retail conditions. Article Title
• Negative Sentiment: Articles highlighting weaker growth trends and pressure from a shifting retail market are feeding concerns that Under Armour’s turnaround may take longer than investors want, which is weighing on the stock. Article Title

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.

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