Under Armour (NYSE:UAA) Reaches New 12-Month Low - Should You Sell?

Key Points

• Under Armour reached a new 52-week low of $4.72 during trading, with analysts setting a collective target price of approximately $6.70, reflecting a "neutral" rating from multiple firms.
• The company reported earnings of $0.02 per share, missing estimates, and saw a 4.2% decline in revenue compared to the previous year.
• Insider purchases have been notable, with directors acquiring significant shares, indicating potential confidence in the company's future performance despite current challenges.

Under Armour, Inc. (NYSE:UAA - Get Free Report) reached a new 52-week low during trading on Tuesday . The company traded as low as $4.72 and last traded at $4.79, with a volume of 256966 shares trading hands. The stock had previously closed at $4.73.

Analysts Set New Price Targets

UAA has been the subject of a number of analyst reports. Robert W. Baird lowered their price target on Under Armour from $7.00 to $6.00 and set a "neutral" rating for the company in a research report on Monday, August 11th. Citigroup lowered their price target on Under Armour from $6.00 to $5.50 and set a "neutral" rating for the company in a research report on Monday, August 11th. Bank of America decreased their target price on Under Armour from $8.00 to $6.50 and set a "neutral" rating for the company in a research report on Monday, August 11th. BTIG Research started coverage on Under Armour in a research report on Tuesday, October 14th. They set a "neutral" rating for the company. Finally, Rothschild & Co Redburn reaffirmed a "neutral" rating and set a $6.00 target price (down from $7.00) on shares of Under Armour in a research report on Monday, September 15th. Three investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $6.70.

Under Armour Trading Up 3.1%

The stock has a market cap of $2.09 billion, a P/E ratio of 22.16, a P/E/G ratio of 4.05 and a beta of 1.76. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.93 and a current ratio of 1.53. The stock has a 50-day moving average price of $4.97 and a 200-day moving average price of $5.91.

Under Armour (NYSE:UAA - Get Free Report) last issued its quarterly earnings results on Friday, August 8th. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.03 by ($0.01). The business had revenue of $1.13 billion for the quarter, compared to the consensus estimate 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 was down 4.2% compared to the same quarter last year. During the same quarter last year, the business posted $0.01 EPS. Under Armour has set its Q2 2026 guidance at 0.010-0.020 EPS. On average, equities research analysts expect that Under Armour, Inc. will post 0.3 EPS for the current year.

Insider Buying and Selling

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

Institutional Trading of Under Armour

Hedge funds have recently bought and sold shares of the company. Parallel Advisors LLC increased its position in Under Armour by 620.7% during the second quarter. Parallel Advisors LLC now owns 3,892 shares of the company's stock valued at $27,000 after acquiring an additional 3,352 shares during the last quarter. Laurel Wealth Advisors LLC increased its position in Under Armour by 583.0% in the second quarter. Laurel Wealth Advisors LLC now owns 4,098 shares of the company's stock worth $28,000 after buying an additional 3,498 shares in the last quarter. UMB Bank n.a. increased its position in Under Armour by 133.8% in the second quarter. UMB Bank n.a. now owns 4,203 shares of the company's stock worth $29,000 after buying an additional 2,405 shares in the last quarter. Twin Tree Management LP purchased a new stake in Under Armour in the first quarter worth about $44,000. Finally, Neo Ivy Capital Management purchased a new stake in Under Armour in the second quarter worth about $44,000. Hedge funds and other institutional investors own 34.58% of the company's stock.

About Under Armour

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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